homework3

# homework3 - 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 x x x x 10 40 20 100 30 120 40 130 50 135 60 130 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 10 40 20 100 30 120 40 130 50 135 60 130 3) 5pts. What is the profit-maximizing amount of input to use? State the marginal concept rule you used to find this point.

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\$60. 18 pts Input Output AP MP FC VC TC AFC AVC AC MC 0 0 x X x x x x 10 20 20 50 30 70 40 80 5) 5 pts. Find the profit-maximizing input level if output price is \$1.00 6) 4 pts. Calculate profit at the profit-maximizing point above. 7)
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## This note was uploaded on 11/15/2011 for the course AGEC 7100 taught by Professor Duffy,p during the Fall '08 term at Auburn University.

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

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