PRINCIPLES OF MICROECONOMICS (OER)
2nd Edition
ISBN: 9781947172340
Author: Timothy Taylor, Steven A. Greenlaw
Publisher: OpenStax
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Textbook Question
Chapter 7, Problem 40P
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns?
Figure 7.7 How output Affects Total costs
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2. The relationship between marginal and average costs
Consider the following scenario to understand the relationship between marginal and average values. Suppose Latasha is a professional basketball
player, and her game log for free throws can be summarized in the following table.
Fill in the columns with Latasha's free-throw percentage for each game and her overall free-throw average after each game.
Game
Game Result
Total
Game Free-Throw Percentage
Average Free-Throw Percentage
1.
8/10
8/10
80
80
6/10
14/20
3
1/5
15/25
4
3/5
18/30
5
8/10
26/40
On the following graph, use the orange points (square symbol) to plot Latasha's free-throw percentage for each game individually, and use the green
points (triangle symbol) to plot her overall average free-throw percentage after each game.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
relationship between marginal and average costs
Consider the following scenario to understand the relationship between marginal and average values. Suppose Raphael is a professional basketball
player, and his game log for free throws can be summarized in the following table.
Fill in the columns with Raphael's free-throw percentage for each game and his overall free-throw average after each game.
Game
Game Result Total Game Free-Throw Percentage
1
4/5
4/5
80
2
2/5
6/10
3
1/4
7/14
4
1/2
8/16
5
4/4
12/20
Average Free-Throw Percentage
80
On the following graph, use the orange points (square symbol) to plot Raphael's free-throw percentage for each game individually, and use the green
points (triangle symbol) to plot his overall average free-throw percentage after each game.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
FREE-THROW PERCENTAGE
100
90
80
70
60
50
40
30
20
10
0
0
1
2
3
5
GAME
Game Free-Throw…
Explain what responsibilities of "cost control" are in a project associated with the making of a Hollywood-style movie. How would these responsibilities change if the movies was a documentary, say on the Covid-19 pandemic?
Chapter 7 Solutions
PRINCIPLES OF MICROECONOMICS (OER)
Ch. 7 - A firm had sales revenue of 1 million last year....Ch. 7 - Continuing from Exercise 7.1, the films factory...Ch. 7 - The WipeOut Ski Company manufactures skis for...Ch. 7 - Based on your answers to the WipeOut Ski Company...Ch. 7 - If two painters can paint 200 square feet of wall...Ch. 7 - Return to the problem explained in Table 7.13 and...Ch. 7 - Suppose the cost of machines increases to 55,...Ch. 7 - Automobile manufacturing is an industry subject to...Ch. 7 - What are explicit and implicit costs?Ch. 7 - Would you consider an interest payment on a loan...
Ch. 7 - What is die difference between accounting and...Ch. 7 - What is a production function?Ch. 7 - What is the difference between a fixed input and a...Ch. 7 - How do we calculate marginal product?Ch. 7 - What shapes would you generally expect a total...Ch. 7 - What are the factor payments for land, labor, and...Ch. 7 - What is the difference between fixed costs and...Ch. 7 - How do we calculate each of the following:...Ch. 7 - What shapes would you generally expect each of the...Ch. 7 - Are there fixed costs in the lung-run? Explain...Ch. 7 - Are fixed costs also sunk costs? Explain.Ch. 7 - What are diminishing marginal returns as they...Ch. 7 - Which costs are measured on per-unit basis: fixed...Ch. 7 - What is a production technology?Ch. 7 - In choosing a production technology, how will...Ch. 7 - What is a long-run average cost curve?Ch. 7 - What is the difference between economies of scale,...Ch. 7 - What shape of a long-run average cost curve...Ch. 7 - Why will firms in most markets be located at or...Ch. 7 - Small Mom and Pop firms, like inner city grocery...Ch. 7 - A common name for fixed cost is overhead. If you...Ch. 7 - How does fixed cost affect marginal cost? Why is...Ch. 7 - Average cost curves (except for avenge fixed cost)...Ch. 7 - What is the relationship between marginal product...Ch. 7 - It is clear that businesses operate in the short...Ch. 7 - Retune to Table 7.2. In the top half of the table,...Ch. 7 - How would an improvement in technology, like the...Ch. 7 - Do you think that the taxicab industry in large...Ch. 7 - A firm is considering an investment that will earn...Ch. 7 - Return to Figure 7.7. What is the marginal gain in...Ch. 7 - Compute the average total cost, average variable...Ch. 7 - A small company that shovels sidewalks and...
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