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home4a - EC 1 Section 1 UCLA Winter 2003 A Bresnock...

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EC 1, Section 1 Student Name: UCLA TA Name/Section: Winter, 2003 A. Bresnock Homework Assignment 4 Answers (20 points) 1. Complete the cost table to make it consistent with the given numbers. Then plot the total cost functions for the range of output 0 - 16 on one diagram, and the average and marginal cost functions on another diagram. L Q TC TFC TVC ATC AFC AVC MC 0 0 25 25 0 --- --- --- 1 4 50 25 25 12.50 6.25 6.25 6.25 2 10 75 25 50 7.50 2.50 5.00 4.17 3 13 100 25 75 7.69 1.92 5.77 8.33 4 15 125 25 100 8.33 1.67 6.66 12.50 5 16 150 25 125 9.37 1.56 7.81 15.00 \$ \$ MC TC TVC ATC AVC 25 TFC 0 Q 0 Q TC and TVC are reverse “S-shaped” All 3 cost functions are “U-Shaped” and and show diminishing returns. show diminishing returen.

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