micro_instruction_part1

micro_instruction_part1 - 1. Quantity produced: a....

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Microeconomics classwork: Part 1 Monthly information of Taqueria “Ceteris Paribus” 1. The firm produces with the following “Total product” function: ± ² ³´ µ ¶·¸´´´± ¹ º» ¼ ½ Where L = number of workers and Y is the total output (number of tacos produced), that means if there is one worker (L=1) the total output is 66 tacos (Y=66), two workers (L=2 and Y=71), and so on… 2. Fixed costs: each month the firm has to pay a. $ 4,000 for rent b. $ 6,000 for loan interest 3. Variable costs: a. $ 500 monthly for each worker b. $ 50 for inputs for each unit produced With this information, work in the following tasks:
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Unformatted text preview: 1. Quantity produced: a. Calculate the quantity produced (using 1 to 20 workers). b. Calculate the marginal product of labor c. Draw in a chart the total-product curve 2. Costs: a. Calculate the fixed, variable and total costs b. Draw in a chart the fixed, variable and total costs 3. Average costs: a. Calculate the average fixed, average variable and average total costs b. Draw in a chart these three costs 4. Marginal Cost: a. Calculate the marginal cost b. Draw in a chart the marginal and average total costs c. Where the both curves meet each other?...
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This note was uploaded on 03/30/2012 for the course ECON 2302 taught by Professor Love during the Fall '08 term at Lone Star College.

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