Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 11, Problem 5SPA
a)
To determine
Range of output over which there is an increased specialization and division of labor.
b)
To determine
Range of output over which firm experiences diminishing marginal product of labor.
c)
To determine
Range of output over which there is increased average product of labor but diminishing marginal product.
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3. Various measures of cost
Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company’s total cost of production at various production quantities.
Fill in the remaining cells of the following table.
Quantity
Total Cost
Marginal Cost
Fixed Cost
Variable Cost
Average Variable Cost
Average Total Cost
(Pairs)
(Dollars)
(Dollars)
(Dollars)
(Dollars)
(Dollars per pair)
(Dollars per pair)
0
60
—
—
1
160
2
220
3
270
4
340
5
450
6
630
On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC…
3. Complete the following table for Jan's Bike shop.
Labor
(workers)
Output
(bikes)
0
0
1
20
2
50
3
60
4
64
Total fixed Total variable
costs (dollars) cost (dollars)
200
100
Total cost
(dollars)
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: $…
Chapter 11 Solutions
Macroeconomics
Ch. 11.1 - Prob. 1RQCh. 11.1 - Prob. 2RQCh. 11.2 - Prob. 1RQCh. 11.2 - Prob. 2RQCh. 11.2 - Prob. 3RQCh. 11.3 - Prob. 1RQCh. 11.3 - Prob. 2RQCh. 11.3 - Prob. 3RQCh. 11.3 - Prob. 4RQCh. 11.3 - Prob. 5RQ
Ch. 11.4 - Prob. 1RQCh. 11.4 - Prob. 2RQCh. 11.4 - Prob. 3RQCh. 11.4 - Prob. 4RQCh. 11.4 - Prob. 5RQCh. 11 - Prob. 1SPACh. 11 - Prob. 2SPACh. 11 - Prob. 3SPACh. 11 - Prob. 4SPACh. 11 - Prob. 5SPACh. 11 - Prob. 6SPACh. 11 - Prob. 7SPACh. 11 - Prob. 8SPACh. 11 - Prob. 9SPACh. 11 - Prob. 10SPACh. 11 - Prob. 11SPACh. 11 - Prob. 12SPACh. 11 - Prob. 13SPACh. 11 - Prob. 14SPACh. 11 - Prob. 15APACh. 11 - Prob. 16APACh. 11 - Prob. 17APACh. 11 - Prob. 18APACh. 11 - Prob. 19APACh. 11 - Prob. 20APACh. 11 - Prob. 21APACh. 11 - Prob. 22APACh. 11 - Prob. 23APACh. 11 - Prob. 24APACh. 11 - Prob. 25APACh. 11 - Prob. 26APACh. 11 - Prob. 27APACh. 11 - Prob. 28APACh. 11 - Prob. 29APACh. 11 - Prob. 30APACh. 11 - Prob. 31APACh. 11 - Prob. 32APA
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Similar questions
- Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.arrow_forward4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 120 1 200 2 240 3 285 4 340 5 425 6 540 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $200, so you should start your ATC curve by placing a green point at (1, 200). For MC, plot the points between the integers:…arrow_forwardK Matt's candle factory rents equipment for making candles and hires students Matt pays $140 a day for equipment and $200 a day for each student hired The table shows Matt's total product schedule Construct Matt's total variable cost and total cost schedules Fill in the columns in the table. GEXER Labor (workers per day) 23WN 4 5 Total product (candles per day) 33 54 71 85 Total variable cost Total cost (dollars per day)arrow_forward
- 4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Quantity (Pairs) Total Cost Marginal Cost (Dollars) (Dollars) Fixed Cost (Dollars) Variable Cost (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) 0 60 1 155 2 220 3 255 4 300 5 350 6 450 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $155, so you should start your ATC curve by placing a green point at (1, 155). For MC, plot the points between the integers:…arrow_forward. Write the word or phrase that best completes each statement or answers the question. Table 11-6 Quantity of workers Quantity of foot massages per day Fixed cost Variable cost Total cost Average total cost Marginal cost 0 0 1 10 2 25 3 45 4 60 5 70 4) Refer to Table 11-6. Alicia Gregory owns a foot massage business. She leases 4 4) computer- controlled massage booths, for which she pays $125 per day. She cannot increase the number machines she leases without giving the manufacturer 3 months' notice. She can hire as many workers as she wants at a cost of $75 per day per worker. These are the only two inputs she uses in her business. Use this information to fill in the columns in the above table.arrow_forward
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