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homework3-key

# homework3-key - Econ 2020 Dr Duffy Homework III October 19...

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Econ 2020 Name_______________________ Dr. Duffy Homework III. October 19 1) 18 pts total. Input Output AP MP FC VC TC AFC AVC AC MC 0 0 x x 30 0 30 x x x x 10 40 4 4 30 30 60 .75 .75 1.50 .75 20 100 5 6 30 60 90 .30 .60 .90 .50 30 120 4 2 30 90 120 .25 .75 1.00 1.50 40 130 3.25 1 30 120 150 .23 .92 1.15 3.00 50 135 2.7 0.5 30 150 180 .22 1.11 1.33 6.00 60 130 2.17 -0.5 30 180 210 .23 1.38 1.62 -- The table above shows the relationship of one variable input to output. The input costs \$3.00 each and Fixed Costs are \$30.00. Fill in the table. 2) 6 pts. For the situation in problem 1) above, assume that the output sells for \$1.50 and the industry is competitive. Calculate profit for each level of input. Input Output Profit 0 0 -30 10 40 0 20 100 60 30 120 60 40 130 45 50 135 22.50 60 130 -15 Profit = TR - TC TR = output price * output TC is found in table above 3) 5pts. What is the profit-maximizing amount of input to use? State the marginal concept rule you used to find this point. 30 units of input, MC=Py

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4) Fill in the blanks in the table below. The input costs \$2.00 each, and fixed costs are
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homework3-key - Econ 2020 Dr Duffy Homework III October 19...

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