Exam 2 Review Sheet - Review Sheet for the Second Midterm...

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Review Sheet for the Second Midterm Exam Economics 201 Second review sheet The following is a non-exhaustive list of possible questions for the second midterm exam. Proper  use of this sheet includes revisiting this site for possible revisions of the questions.   1) Derive the total product curve stating and using all necessary assumptions. Assumption 1: Firms Maximize Profits Assumption 2: Firms Sell Good Competitively Assumption 3: Law of Diminishing Marginal Productivity Assumption 4: Firms Buy Factors Competitively 2) Using the total product curve, derive the average and marginal product curves. Average Product : output per worker Marginal Product : the additional output that will be forthcoming from an additional worker,  other inputs constant 3) Using the total product curve, derive the variable cost curve stating and using all necessary  assumptions. Variable Cost : costs that change as output changes 4) Using the variable cost curve, derive the total cost curve justifying your work. 5) From the total cost curves (TC, VC, FC) derive the related average and marginal cost curves  plotting them on the same axis. Justify their relative positions.
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