hw set 3 - LeannaLiu Econ200B ProblemSet#3 1. a)...

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Leanna Liu Econ 200 B  Problem Set # 3 1. a)  Quantity of Labor Bicycles Assembled  Marginal Product  0 0 - 1 5 5 2 12 7 3 20 8 4 27 7 5 32 5 6 34 2 b) The diminishing marginal product is apparent when the quantity of labor is at 4 and  the bicycles assembled goes from 20 bicycles to 27 bicycles. c)  Quantity of Labor Bicycles  Assembled Total Cost Total Revenues  0 0 0 0 1 5 80 125 2 12 160 300 3 20 240 500 4 27 320 675 5 32 400 800 6 34 480 850 2. # of B Cut/da y MPP FC VC TC AFC AVC ATC MC 0 0 - 75 0 75 - - - - 1 5 5 75 100 175 75 100 175 100 2 15 10 75 200 275 37.5 100 137.5 100
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3 30 15 75 300 375 25 100 125 100 4 36 6 75 400 475 18.75 100 118.75 100 5 40 4 75 500 575 15 100 115 100 If the price of a hair cut is $20, then he will hire four barbers because it gives him  the max profit. 3. Q Total Cost ATC MC 0 $50 - - 1 $130 $130 80 2 $180 $90 50 3 $250 $83.33 70 4 $350 $87.5 100 5 $460 $92 110 6 $600 $100 140 a) Total revenue is max at Q=6 because TR=Q*P which in this case is 600 b) When Q is at 3 c) It can be 3Q or 4Q 4. a) opportunity cost= # loss/ # gain
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This note was uploaded on 11/19/2010 for the course ECON ECON200 taught by Professor Ericka during the Spring '10 term at University of Washington.

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hw set 3 - LeannaLiu Econ200B ProblemSet#3 1. a)...

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