march-16-wyk-answers

march-16-wyk-answers - Waddayaknow 3/16/06 Name _ Answer...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Waddayaknow 3/16/06 Name _____________________________ Answer the questions below in the spaces provided . Problem I. Fill in the table. Use two-decimal point accuracy. Input price for the variable input is $10.00 each. Fixed costs are $900. input output AP MP VC FC TC AVC AFC ATC MC 00 xx 0 9 0 0 9 0 0 xxx x 10 40 4 4 100 900 1000 2.50 22.50 25.00 2.50 20 100 5 6 200 900 1100 2.00 9.00 11.00 1.67 30 180 6 8 300 900 1200 1.67 5.00 6.67 1.25 40 220 5.5 4 400 900 1300 1.82 4.09 5.91 2.50 50 250 5 3 500 900 1400 2.00 3.60 5.60 3.33 60 260 4.333 1 600 900 1500 2.31 3.46 5.77 10.00 70 265 3.786 0.5 700 900 1600 2.64 3.40 6.04 20.00 80 260 3.25 -0.5 800 900 1700 3.08 3.46 6.54 Mark off the 3 stages of production (3 points) If the output price is $10.00, what is the profit maximizing amount of input to use? _________60____________________ units of input State the marginal principle (rule) that you used to find this point. ___________MC= Py_________________________________________________ Calculate the profit at the profit-maximizing point, above. __$10*260-1500 = 1100_______________________________________ Use the information in the table to find the shutdown point for this firm:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

march-16-wyk-answers - Waddayaknow 3/16/06 Name _ Answer...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online