The following is a total cost curve. Total cost ($) 1000 900- 800- 700- 600- 500- 400- 300- 200 100+ ok 0 Q TC Q 50 100 150 200 250 300 350 Quantity (q) G On the diagram to the right, sketch the corresponding marginal cost curve. Using the multipoint curved line drawing tool, draw the firm's marginal cost curve. Label this curve 'MC'. Note: Use the multipoint curved line drawing tool one time to draw the entire curve. If the price of output is $4.00 and there are no fixed costs, what is the profit-maximizing level of output? The firm will maximize profits by producing units of output. (Enter your response as an integer.) Marginal cost per unit ($) 10.00 9.00 8.00 7.00 6.00 5.00- 4.00 3.00 2.00- 1.00- 0.00+ 0 50 100 150 200 Quantity (q) MC 250 300 350 After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end your curve.

Find the marginal cost, marginal revenue, and marginal profit functions. C(x) = 7x²; R(x) = x³ + 11x + 15 marginal cost marginal revenue marginal profit Find all values of x for which the marginal profit is zero. Interpret your answer. (Enter your answers as a comma-separated list.) X =

How would you calculate the marginal cost of your firm's output? (think of a single product, not an industry).

The company AffordableStuff sells cell phones. The marginal cost for each cell phone is given by the equation C(x) = 0.01x² – 3x + 229. a is the number of cell phones manufactured and sold. The marginal revenue function is R(x) = 429 – 2.x. Both C(x) and R(x) are given in dollars. a) Where do these curves intersect? What do those intersection points mean? b) Find the area between the curves, using end points that make sense. Round to the nearest cent. c) What does the area under the curve mean in this case?

What are transaction costs?  How do transaction costs affect the boundaries of a firm?

Suppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. PRICE (Dollars per oven) 100 90 80 70 40 30 20 10 0 0 5 0 MC ATC AVC 10 15 20 25 30 35 QUANTITY (Thousands of ovens) 40 45 50 (?)

Only typed answer

Describe the characteristics of a firm. Include an example of a firm for each characteristic invloved.

Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus' output during a given day. I have completed the first two rows. Workers Output Marginal Total Average Marginal Product Cost Total Cost Cost $200 1 20 20 $300 $15 $5 2 50 30 $400 $8 $3.33 3 90 40 4 120 30 140 20 150 10 7 155 5

Evaluate the factors affecting firm behavior, such as production and costs