Homework#5_Fall2011

Homework#5_Fall2011 - 1 195.603 Applied Microeconomics...

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Unformatted text preview: 1 195.603 Applied Microeconomics Professor: Carey Borkoski, Ph.D. Homework #5 Due October 3rd 1. The information below is for Bobs blue jeans manufacturing plant. All data are per hour. Quantity FC VC TC AFC AVC ATC MC 0 $16 $ 0 -- -- -- -- 1 16 18 2 16 31 3 16 41 4 16 49 5 16 59 6 16 72 7 16 90 8 16 114 9 16 145 10 16 184 a. Complete the table (5 points) b. Plot the AVC, ATC and MC on a graph. (3 points) c. Explain the relationship between the ATC and MC. (2 points) 2. The following table contains information about the revenues and costs for Barrys Baseball Manufacturing. All data are per hour. Price - $3. Quantity TR TC Profit MR MC 0 $0 $1 -- -- 1 3 2 2 6 4 3 9 7 4 12 11 5 15 16 a. Complete the table. ( 4 points) b. What is Barrys optimal level of production? What criteria did you use to determin the optimal level of production? (2 points) c. Is $3 a long-run equilibrium price in the market of baseballs? Explain. (4 points) 2 3. Use the following graph to answer the questions below. (2 points each) Use the following graph to answer the questions below....
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This note was uploaded on 01/25/2012 for the course AS 195.603 taught by Professor C.b. during the Fall '11 term at Johns Hopkins.

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Homework#5_Fall2011 - 1 195.603 Applied Microeconomics...

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