MP AP MC TC worksheet

MP AP MC TC worksheet - the data on the production of...

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Microeconomics  Worksheet—Costs MP, AP, MC, ATC 1.  Consider the table with information for a competitive firm. TP Output Total Cost 0 10 1 40 2 60 3 90 4 130 a.  Marginal cost of the third unit is ___________ b. Total Fixed cost is __________ c. AVC  of the 4 th  unit produced is ________ d. If P = 30 and 3 units are produced, this firms profits will be _________ 2. each for $20.  Production is running at 400 units per day.  If a 4 th  worker is employed,  production would rise to 440 units per day.  The market price for this product is $2.00 a. The MP of the 4 th  worker is _______ b. The MC of the 440 th  unit is _______ c. The profit from 400 units of output is _______ d. The profit from 440 units of output is _______ 3.  Wooden chairs can be produced using two different techniques, A and B.    Consider 
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Unformatted text preview: the data on the production of chairs. Q = 1 Q = 2 Q = 3 Q = 4 Technique K L K L K L K L A 5 2 8 4 11 5 15 5 Total Cost A B 3 3 6 5 8 7 11 10 Total Cost B a. If Labor costs $2 per unit and capital costs $3 per unit, what is the minimum cost of producing at each level of output? b. Graph total cost of production as a function of output. (Q is on the horizontal axis) c. How much does it cost a profit maximizing firm to increase to each next level of output? 4. Complete the table. # Labor MP TP AP 1 12 2 16 3 14 4 13 5 10...
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This note was uploaded on 03/24/2010 for the course ECO 113 taught by Professor Briggs during the Fall '07 term at Bryant.

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MP AP MC TC worksheet - the data on the production of...

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