hwk3-2007

hwk3-2007 - Econ 2020 Dr Duffy Homework III October 18 Name...

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Econ 2020 Name_______________________ Dr. Duffy Homework III. October 18 1) 24 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 ( 18 pts ). Mark off stages 1, 2, and 3 of production ( 6 pts ). 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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4) 24 pts total Fill in the blanks in the table below. The input costs \$2.00 each, and fixed costs are \$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 (6 pts). On the table above, mark off stages 1, 2, and 3 of production. 5) 5 pts.
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hwk3-2007 - Econ 2020 Dr Duffy Homework III October 18 Name...

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