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Waddayaknow 10/17/06 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 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_________________________________________________

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