8. The relationship between marginal and average costs Aa Aa
Consider the following scenario to understand the relationship between marginal and average values.
Suppose Larry is a professional basketball player, and his game log for free throws can be sum
12. Who pays the tax?
The following calculator shows the labor market for research assistants in the fictional country of Collegia. The
equilibrium wage is $10.00 per hour, and the equilibrium number of research assistants is 250.
Suppose the government h
3. Accounting profit versus economic profit Aa Aa
Deborah lives in San Francisco and runs a business that sells pianos. In an average year, she receives $900,000 from
sales of pianos. Of this sales revenue, she must pay the manufacturer a wholesale cost o
7. Costs of production: Total, average, marginal Aa Aa
Douglas Fur (DF) is a small manufacturer of fakefur boots in Chicago. Its total cost of production is given in the following table.
Fill in the remaining cells of the table.
Quantity of Total Cost M
PRICE [Dollars per bottle] PRICE [Dollars per bottle]
50 Gov't Revenue 50
@4» Tax x
100 200 300 400 500 600 100 200 300 400 500 600
QUANTITY [Bottles per year] QUANTITY [Bottles per year]
Explanation: Close A
If demand is given