Homework #5

Homework #5 - 5 TPP and TVC MPP and MC APP and AVC 6...

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Dr. Popp AGEC 1103 9 March 2007 Homework #5 1. The slope of the total physical product curve is approximately equal to the marginal physical product. 2. Stage 1—MPP is above APP (more bang for your buck). Stage 2—APP is above MPP and MPP is greater than or equal to zero (contributes to productivity at a lower level). Stage 3—MPP is less that zero (losing productivity). 3. Stage 2 4. Fixed costs—do not vary with the level of input use. Variable costs—do vary with the level of input use.
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Unformatted text preview: 5. TPP and TVC MPP and MC APP and AVC 6. Marginal revenue = marginal cost. 8. Between 20 and 40 units. 9. Shut down = average variable cost and marginal cost are equal. 10. Break even = average total cost and marginal costs are equal. 11. The shutdown point and everything to the right of it. 13. Qsp=$75, ATC=$5, AVC=$3, TC=$375, TVC=$225, P=-$150 15a. Fertilizer 15b. Land...
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This note was uploaded on 04/27/2008 for the course AGEC 1103 taught by Professor Popp during the Spring '08 term at Arkansas.

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