Homework #5

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online