2. (Module 55) Use the information in the table below to answer the following questions. Average Fixed Cost Average Total Cost Average Variable Marginal Quantity Cost Cost $ 20.00 $ 40.00 $ 20.00 $ 60.00 $ 39.00 $ 36.67 $ 40.00 $ 46.00 $ 53.33 $ 60.00 1 2$ 20.00 $ $ 23.33 $ 30.00 19.00 $ 18.00 3 $ 13.33 2$ 32.00 4 $ 10.00 2$ 50.00 2$ $ 70.00 $ 90.00 $ 100.00 5 8.00 $38.00 $ 46.67 $ 54.29 2$ 6.67 7 2$ 5.71 a. What is the firm's total fixed cost? b. Looking at the average total cost data, at what level of output does the diminishing returns effect begin to dominate the spreading effect? Explain. c. Suppose the firm's only variable input is labor. Using the data in the table, respond to the following. i. At what level of output would the firm's average product of labor (APL) be maximized? Explain how you know. ii. What level of output corresponds to where the firm's production function begins to rise at a diminishing rate?

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6. Relationship between returns to scale, isoquants, production frontiers, and cost curves The following graph shows two isoquants that represent the firm's production technology. One of the isoquants shows all of the possible combinations of labor and capital that can produce 300 units of output (q = 300), but you must determine the other isoquant's quantity given the information that follows. CAPITAL 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 LABOR 60 70 80 ¹9, = 300 90 100 Suppose the firm's production process exhibits decreasing returns to scale. Based on the graph, the level of output represented by the second isoquant is q2 =

Costs and Profit Maximization: Work It Out 1 Suppose Margie decides to lease a photocopier and open up a black-and-white photocopying service in her dorm room for use by faculty and students. Her total cost, as a function of the number of copies she produces per month, is given in the table. Number of Photocopies Per Month Total Cost Fixed Cost Variable Cost Total Revenue Profit 0 $100         1,000 $110         2,000 $125         3,000 $145         4,000 $175         5,000 $215         6,000 $285         a. Fill in the missing numbers in the table, assuming that Margie can charge 6 cents per black-and-white copy. Margie's fixed cost is: $       Variable cost, 0 photocopies/month: $     Variable cost, 1,000 photocopies/month: $     Variable cost, 2,000 photocopies/month: $     Variable cost, 3,000 photocopies/month: $     Variable cost, 4,000 photocopies/month: $…

workers ouput marginal product  total cost average total cost marginal cost 0 0 0 200 0 $0 1 20 20 300 $15 $5 2 50 30 400 $8 $3.33 3 90 40 500 $5.56 $2.50 4 120 30 600 $5 $3.33 5 140 20 700 $5 $5 6 150 10 800 $5.33 $10 7 155 5 900 $5.8 $20 a.) can you explain dimisnishing marginal product based on those numbers?  b.) compare the column for average total coat and the column for marginal cost. Explain the relationship.

31. Applied Optimization Due Wednesday, Mar 25, 11:59pm CDT O Find the economic lot or economic order quantity size which minimizes total cost Question A company produces and sells 2, 500 sets of silverware each year. Each production run has a fixed cost of $200 and an additional cost of $5 per set of silverware. To store a set for a full year costs $4. What is the optimal number of production runs the company should make each year? Do not include units with your answer. Provide your answer below: MAR 25 Q Search or type URL +) 2$ 3 4 т K в command M. * 00 つ D.

1. Your cousin Vinnie owns a painting company with fixed costs of $150 and the following schedule for variable costs:  Quantity Variable Cost Average Fixed Cost Average Variable Cost Average Total Cost (Houses Painted per Month) (Dollars) (Dollars) (Dollars) (Dollars) 1 15                2 35                3 60                4 90                5 135                6 240                7 480                  The efficient scale is   houses.  ?    #2 image : The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers.   Which of the following statements is true as a result of the lump-sum tax? Check all that apply.   Which of the following statements is true as a result of the lump-sum tax?    Check all that apply. Average variable cost will increase.   Average total cost will increase.   Average…

1.  When Fixed Cost change, which of the following other costs will change?  Explain why you selected the costs you did.   Variable Cost Total Cost Average Total Cost Average Variable Cost Average Fixed Cost Marginal Cost   2.  When Variable Cost change, which of the following other costs will change?  Explain why you selected the costs you did.   Fixed Cost Total Cost Average Total Cost Average Variable Cost Average Fixed Cost Marginal Cost   3.  What assumption is made concerning short-run production that causes the short-run cost curves to have their typical shapes?