Jim operates a lawn mowing business in a highly competitive suburb. There are ma
ID: 1156699 • Letter: J
Question
Jim operates a lawn mowing business in a highly competitive suburb. There are many other lawn mowing businesses close to his area. Assume there is no difference in the quality of service offered by each business. We may conclude that Jim operates in a perfectly competitive market and is therefore a price taker. Jim's main variable cost is the petrol required to run his lawn mower and transport his equipment between job sites. Additionally, he leases his equipment at a fixed cost of $10 per day. The market price for lawn mowing is $8 per lawn. The following table shows the quantity of lawns mowed per day (Q) and the corresponding total variable costs (TVC) i. Complete the remaining columns of the table (Round all values to the nearest integer): TVC TFC TC AVC ATC MC TR MR (P) 4 2) 12 24 4 40 60 4 marksExplanation / Answer
Q
TVC
TFC
TC
AVC
ATC
MC
TR
MR=P
0
0
10
10
1
4
10
14
4
14.00
4
8
8
2
12
10
22
6
11.00
8
16
8
3
24
10
34
8
11.33
12
24
8
4
40
10
50
10
12.50
16
32
8
5
60
10
70
12
14.00
20
40
8
Q
TVC
TFC
TC
AVC
ATC
MC
TR
MR=P
0
0
10
10
1
4
10
14
4
14.00
4
8
8
2
12
10
22
6
11.00
8
16
8
3
24
10
34
8
11.33
12
24
8
4
40
10
50
10
12.50
16
32
8
5
60
10
70
12
14.00
20
40
8
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