econ-hwk-answers

econ-hwk-answers - KEY to Econ review...

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Unformatted text preview: KEY to Econ review ______________________________ I. Profit-maximizing point (unrestricted variable input). The table below shows the relationships between different levels of a variable input and the corresponding output (per acre) with all other inputs held constant. Complete the table and answer the questions that follow. Assume the variable input costs $2.00 each and the output sells for $3.00 each. Fixed costs are $40 per acre. Input Output Total Total Total Average Marginal Marginal Marginal Marginal Marginal Revenue Variable Cost Physical Physical Value Input Revenue Cost Cost Product Product Product Cost 40 XXXX XXXX XXXX XXXX XXXX XXXX 5 10 30 10 50 2.00 2.00 6.00 2.00 3.00 1.00 10 22 66 20 60 2.20 2.40 7.20 2.00 3.00 0.83 15 31 93 30 70 2.07 1.80 5.40 2.00 3.00 1.11 20 37 111 40 80 1.85 1.20 3.60 2.00 3.00 1.67 25 41 123 50 90 1.64 0.80 2.40 2.00 3.00 2.50 30 43 129 60 100 1.43 0.40 1.20 2.00 3.00 5.00 35 44 132 70 110 1.26 0.20 0.60 2.00 3.00 10.00 40 43 129 80 120 1.08-0.20-0....
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econ-hwk-answers - KEY to Econ review...

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