Question 1: Refer to the graph below to answer the questions that follow. Price Per Unit 50 40 30 28 10 O 10 20 25 3 2 Quantity/n10 20 25 Quantity

A. Write out the names of the curves represented by 1, 2 and 3 fully. Do not merely use the symbols. (3 marks) B. Identify the law curves 1, 2 and 3 obey. (1 mark) C. Justify why curve 1 lies above curve 2. (1 mark) D. Use points a and c and their respective price values to explain what the vertical gap between two points represents. (2 marks) E. How many products should be made if the producer wishes to achieve maximum labour efficiency? (1 mark) F. How many products should be made if the producer wishes to achieve maximum productive efficiency? (1 mark) G. Which market price would allow this producer to attain normal profit? (1 mark) H. Which market price would allow this producer to attain economic profit? (1 mark) 1. At which price should the producer consider closing down? (1 mark) (12 marks)