econnotes - 20 multiple choice (60 pts [3 pts each]) 3...

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20 multiple choice (60 pts [3 pts each]) 3 short answer (40 pts) Understand concepts midpoint formula average variable costs Chapter 13 TC=FC+VC ATC=AFC+AVC=(TC/Q) AFC=(FC/Q) AVC = (VC/Q) MC = (triTC/triQ) ^ expected to know, know shape, be familiar with marginal slope Output Q = 0, 9, 10, 13, 15, 16 TC = 25, 50, 75, 100, 125, 150 FC = 25, 25, 25, 25, 25, 25 VC = 0, 25, 50, 75, 100, 125 AFC = -, ? , 2.50, 1.92, 1.67, 1.56 AVC = - ATC = - MC ^ practice filling out table Marginal Cost X = Q of output, Y = cost Backwards checkmark slope (dip at beginning) – line is Marginal, rises because of diminishing marginal product – initially when more workers are hired, productivity increases and cost for work comparatively goes down, cost goes up because productivity per person goes down and you must hire more workers (workspace is more crowded) – to get one unit, you must hire more workers Average Cost Curves Average fixed cost will be declining AFC is declining because as quantity of output increases the fixed cost is spread out over
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This note was uploaded on 01/31/2010 for the course ECON 1000 at Colorado.

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econnotes - 20 multiple choice (60 pts [3 pts each]) 3...

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