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  3. 0 please fill the underlinedblanks answer in the rightmost red...

Question: 0 please fill the underlinedblanks answer in the rightmost red...

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0. Please Fill the UnderlinedBlanks: answer in the right-most red colored cell. 0-1. In the short-run, a firm incurs certain types of costs. Total Costs (TC)-Total Fixed Costs (TFC)+Total Variable Costs (TVC) 1.1 Total Fixed Cost (TFC) is all costs that do not vary with the level of output (that is, does not depend on the level of production which means that Total should be paid even when no production is made. with level of roduction wages,electriciy,etce. 1.2 Total Variable Cost (TVC) is all costs whose magnitude with level of production: wages, electricity, e 1.3 Fixed Cost (AFC) is Total Fixed Cost divided by the quantity produced so, continues to fall throughout the output range:this is called spreading the overhead. .4 Average Variable Cost (AVC) is Total Variable Cost divided by the roduced 5 Average Total Cost (ATC) is the sum of the two costs, the AFC and the total costs (TO), AVC-t total variable costs (TVC) output (O total fixed costs (TFC) output (O) AFC output ()
Total Costs (TC) Total Fixed Costs (TFC) +Total Variable Costs (TVc) 1.1 Total Fixed Cost (TFC) is all costs that do not vary with the level of output (that is, does not depend on the level of production) which means that Total should be paid even when no production is made. 1.2 Total Variable Cost (TVC) is all costs whose magnitud with level of production: wages, electricity, etc. Fixed Cost (AFC) is Total Fixed Cost divided by the quantity produced so, continues to fall throughout the output range: this is called spreading the overhead. 1.3 1.4 Average Variable Cost ( AVC) is Total Variable Cost divided by the produced 5 Average Total Cost (ATC) is the sum of the two costs, the AFC and the total costs (TC) total variablecosts(Tve), total fixed costs (TFC) output(Q) ATC= AFC , utput (Q) Ave variab output ( tpt (Q) output (Q) 6 Marginal Cost is the change in costs due to a one-unit increase in Marginat Costs (MC change in total costs (ATC
Panel (a) I. Utility: Fill the red-colored cells Number of I-1.Which unit (among from the first to the sixth) consumption of albulusic Albums Downloaded does give no additional utility to the customer in the panel(a)? Total Ulity Marginal Ubilit and Listened to per Week (utils per week) (utils per week) 10 (10-0) 6 (16-10 -3 (19-16) th unit 1-2.Which unit (among from the first to the sixth) consumption of albu does reduce the total utility of the customer in the panel(a)? 10 16 19 th unit 1-3. See the table below for music album and cappuecino. Price of a music album-S5, Price of one cappuccino S3, Now a consumer is spending 4 albums and 2 cappuccinos, spending S26 all together, and has S1 left in his hand 3.1 If he consumes $1 of music album with the leftover S how much more utility can he get? 1 (20-19 0 (20-20) -2 (18-20) 20 18 utility Note that the additional (more) atility increased by one more unit of consumptioh is called Marginal Utility Note that the additional (more) otility increased by one more dollar of consumption is called Marginal Utility per Dollar .2 If he consumes $1 of cappuccinos with the leftover $ price of an album is $5 and that of a cup of cappuccino is S3
Panel (a) II. Please Fill the Underlined_Blanks: in the right-most red colored cell 11-1. The table aside and graph below show a production function of a printer making firm 1.1 No firm obtains more output than its 1.2 Does it relate to the short-run or long-run? product Marginal function allows number Physical ol worker(nput output in number of omputer It relates to , because plant size is fixed and it applies to a single firm per week)per weok] per week) Note, In the long-run, eyerything can vary 11-2. Panel(b) in the next page shows a total physical product curve, which represents the maximum feasible outcome when we add successive equal-sized units of labor while holding all other inputs constant. Panel (B) peaks at seven workers/week and then starts to go down. 12.00 50 1 What is the sign of the marginal product when the firm hires the eighth unit 22 The marginal (physical) productit is the physical output that is due to 1-3. Lets examine the marginal product of labor 9.00 8.00 of labor to produce the computer, positive or negative? 56 58 the addition of one more unit ofa 5.80 6.00 40 Marginal product increases for the first 2 units of labor, but it falls down from the third person Panel (b) is to work in force .1 The Law of Marginal Product: 60 As successive equal increases in a variable factor of production are added to fixed factors
1-3. Lets examine the marginal product of labor Marginal product increases for the first 2 units of labor, but it falls down from the third person Panel (D) is to work in force. .1 The Law of Marginal Product: As successive equal increases in a variable factor of production are added to fixed factors 60 of production, there will be a point beyond which the extra, or marginal, product that can be attributed to each additional unit of the variable factor of production will decline This is called The Law ofMarginal Product. 40 3.2 The Relationship between Average and Marginal Costs Ex.:A team of 10 football players with an average weight of 230 pounds 20 What is the total weight of the team? pounds An eleventh player is recruited, whose weight is 340 pounds Now, what is the marginal gain of the eleventh member? What is the total weight of the team? What is the average weight of the team? pounds 2 34 5 67 8 9 10 11 pounds pounds Labor Input ( Does the average weight of the team increase or decrease after the eleventh reeruitment Is the 1th player heavier or lighter than an average? When the marginal player weighs more than the existing average weight, the average weight must increase; weighs less, must decrease It tells that the marginal cost curve must cut through the average cost curve from below to above at the point of the average cost curve 11. The Firm: Cost and Output Determinati&s u
from below to above at the point of the average cost curve. Ill. The Firm: Cost and Output DeterminatiĀ¢ ned II1-1 Assume that the siee of Carelines factery is fixed and Careline can vary the quantity of coffee produced only by changing the umber of workers she employs This describes the preduction decisions that Caroline faces in the shart ren. 0 3.00 3.00 0.00 1 3.30 .00 0.30 3.00 0.30 3.30 0.30 0.50 2 380 3.00 0 1.50 0.40 4.50 3.00 150 1.00 0.50 1.50 5.40 3.00 2.40 0.75 0.60 1.35 0.90 5 6.50 3.00 0 0.0 0 3 1.10 6 7.80 3.00 4.80.5 01.30 1.3 9.30 3.00 6.30 0.43 0.90 1.33 1.50 8 11.00 3.00 8.00038 1.00 1.3 17 9 12.90 3.000.33 1.10 1.43 1.9 10 15.00 3.00 12.00 0.30 1.20 1.50 2.10 .1. How much is the avcrage total cost at the cell (.1)in the table aside? dollars .2 How moch is the marginal cost of the 3rd cup at the cell (1.2) in the table aside? MC from 2 o 3 units of coffeeT 0-3) 3 How much does it cost on average to make a typical cup of coffee when the coffee shop peodaces 10 cups of coffee per 1.5 At the current peodaction level, the shops average cost is lowcr than its marginal cost If the shop prodaces more units will the average cost increase or decrease?
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