HW 5 Micro
mimo_doll
hw_5_chapter_7-9_spring_2016.docx
1. This assignment is on topics related to Chapters 7-9 of Case, Fair and Oster, Principles of Microeconomics.
2. Instructions
The assignment has a total of 15 questions.
These are numerical fill-in-the-blanks questions. There is only one correct answer for each question.
Express your answers in strictly numerical terms. For example, if your answer is one thousand dollars, write: 1000,
AND round your answers to the second decimal; for example, if your answer is 15.236, write 15.24
1. Use the following information to answer questions 1-15.
Consider a firm that daily rents machinery for the cost of $1000 and employs workers at the cost of $100 for a full day of work. The following table describes the production function of the firm. Fill the table such that you can make some production decisions for this firm.
|
Units of Labor |
Units of Production |
Fixed Costs |
Variable Costs |
Total Costs |
Average Variable Costs |
Average Total Costs |
Marginal Cost |
|
1 |
11.00 |
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2 |
16.24 |
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|
3 |
19.89 |
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4 |
22.48 |
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5 |
24.48 |
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6 |
26.13 |
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7 |
27.51 |
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8 |
28.71 |
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9 |
29.78 |
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10 |
30.72 |
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11 |
31.58 |
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12 |
32.36 |
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13 |
33.08 |
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14 |
33.75 |
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15 |
34.37 |
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What is the level of production when 10 units of labor are employed?
10 points
QUESTION 2
1. What is the fixed cost of production when 10 units of labor are employed?
10 points
QUESTION 3
1. What is the variable cost of production when 10 units of labor are employed?
10 points
QUESTION 4
1. What is the total cost of production when 10 units of labor are employed?
10 points
QUESTION 5
1. What is the average variable cost of production when 10 units of labor are employed?
10 points
QUESTION 6
1. What is the average total cost of production when 10 units of labor are employed?
10 points
QUESTION 7
1. What is the marginal cost of production when 10 units of labor are employed?
10 points
QUESTION 8
1. What is the minimum amount of workers needed to be employed if the firm were to produce 24 units of the good?
10 points
QUESTION 9
1. At what approximate level of production is the marginal cost of production equal to the average total cost?
10 points
QUESTION 10
1. What would be the firm’s level of production if the price of the good was $60?
10 points
QUESTION 11
1. What would be the firm’s profits at equilibrium if the price of the good was $60?
10 points
QUESTION 12
1. What would be the price of the good if the firm is employing 8 workers at equilibrium?
10 points
QUESTION 13
1. What would be the profit of the firm if the firm is employing 8 workers at equilibrium?
10 points
QUESTION 14
1. What would be the price of the good if the firm is employing 9 workers at equilibrium?
10 points
QUESTION 15
1. What would be the profit of the firm if the firm is employing 9 workers at equilibrium?
10 points
