Table 71 Table 71 Shows the Short-Run Cost Data of a Perfectly Competitive

question 88

Multiple Choice

Table 7.1
$$\begin{array} { | c | c | c | } \hline \text { Quantity } & \begin{array} { c } \text { Total Cost } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Variable Cost } \\\text { (dollars) }\end{array} \\\hline 0 & \$ 1000 & \$ 0 \\\hline 100 & 1360 & 360 \\\hline 200 & 1560 & 560 \\\hline 300 & 1960 & 960 \\\hline 400 & 2760 & 1760 \\\hline 500 & 4000 & 3000 \\\hline 600 & 5800 & 4800 \\\hline\end{array}$$ Table 7.1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.
-Refer to Table 7.1.If the market price of each camera case is $8 and the firm maximises profit,what is the amount of the firm's profit or loss?

• A) $0 (it breaks even)
• B) Loss of $1000
• C) Profit of $440
• D) Loss of $440

Recognize and calculate the impact of erosion when evaluating new projects.

Identify the role of taxation and depreciation in affecting project cash flow.

Understand the concept of net working capital and its importance in project evaluation.

Appreciate the role of opportunity costs in project analysis.

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Definitions:

Vroom-Yetton-Jago Normative Decision Model

A framework that helps leaders determine the level of involvement of subordinates in the decision-making process.

Authoritative

A leadership or management style characterized by the direct giving of orders and expectations, often without significant input from subordinates.

Consultive Styles

Approaches to leadership and decision-making where input, advice, and feedback from others are sought to make informed decisions.

Transformational Leaders

Leaders who inspire followers to exceed their own interests for the greater good, by providing vision, encouragement, and intellectual stimulation.