1) Draw a total product curve of a representative firm in the short run (label axes...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1) Draw a total product curve of a representative firm in the short run (label axes and the TP curve). Underneath your drawing of the TP curve, draw the marginal product and average product curves, such that they correspond to the TP curve you drew (i.e. their horizontal axes should "line up"). a) On the TP curve, label the point where the slope of the TP curve is maximized with an "a." b) On the TP curve, label the point where marginal product is maximized with a "b." c) On the TP curve, label the point where average product is maximized with "c."| d) On the TP curve, label the point where diminishing marginal returns begins with "d." 2) Fill in the missing values in the table below. Note some boxes are boxed off: oo Q 0 1 2 3 TFC 900 900 900 900 TVC 0 200 250 300 TC AC (ATC) AVC AFC MC 3a) Draw the marginal cost (MC), average variable cost (AVC) and average total cost (AC or ATC) curves of a typical firm, with Q on the horizontal axis. Label all curves and axes. b) In words, explain why it makes sense that the MC curve decreases before increasing. c) In words, explain why this parabolic shape of the MC curve suggests that the TC (total cost) curve is cubic. 1) Draw a total product curve of a representative firm in the short run (label axes and the TP curve). Underneath your drawing of the TP curve, draw the marginal product and average product curves, such that they correspond to the TP curve you drew (i.e. their horizontal axes should "line up"). a) On the TP curve, label the point where the slope of the TP curve is maximized with an "a." b) On the TP curve, label the point where marginal product is maximized with a "b." c) On the TP curve, label the point where average product is maximized with "c."| d) On the TP curve, label the point where diminishing marginal returns begins with "d." 2) Fill in the missing values in the table below. Note some boxes are boxed off: oo Q 0 1 2 3 TFC 900 900 900 900 TVC 0 200 250 300 TC AC (ATC) AVC AFC MC 3a) Draw the marginal cost (MC), average variable cost (AVC) and average total cost (AC or ATC) curves of a typical firm, with Q on the horizontal axis. Label all curves and axes. b) In words, explain why it makes sense that the MC curve decreases before increasing. c) In words, explain why this parabolic shape of the MC curve suggests that the TC (total cost) curve is cubic.
Expert Answer:
Answer rating: 100% (QA)
Regarding the first question which pertains to drawing a total product TP curve along with marginal product MP and average product AP curves and labeling the points of maximization and diminishing ret... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these economics questions
-
A surface is so constructed that, at all points, the E vector points outward and is at right angels to the surface. Choose the statement(s) that is/are true about this surface. (i) There is no field...
-
Multiple Choice Questions: 1. Total fixed costs a. Do not vary with the level of output. b. Cannot be avoided in the short run without going out of business. c. do not exist in the long run. d. Are...
-
Indicate whether each of the following items would be classified as (1) an operating activity, an investing activity, or a financing activity or (2) as a noncash transaction or noncash item. (a) Cash...
-
How can your knowledge of meat and meat cookery be used to understand protein substitutions for vegan dishes, such as tofu, texturized soy protein, grains, or beans?
-
A certain molecule has a doubly degenerate excited state lying at 360 cm3 above the non-degenerate ground state. At what temperature will is per cent of the molecules be in the upper state?
-
Mary Jansen is the assistant chief accountant at Casey Company, a manufacturer of computer chips and cellular phones. The company presently has total sales of $20 million. It is the end of the first...
-
Why is monitoring and information disclosure critical for the success of emissions banking and trading?
-
Desrosiers Ltd. had the following long-term receivable account balances at December 31, 2016: Notes receivable .................................................. $1,800,000 Notes receivable-Employees...
-
Write 2,500-3,000 word paper (not counting title page or reference page) detailing an economic system for an imaginary country. 1. name your country 2. Choose and detail an economic system from those...
-
Consider an economy that consists of three individuals: Maureen (M), David (D), and Suvarna (S). Two goods are available in the economy, x and y. The marginal rates of substitution for the three...
-
Kahan's summation algorithm recovers the bits that are lost in the process of adding a small and a large number and preserves this information in the form of an accumulated correction. The following...
-
Data for Andrews Inc. are presented in E23-13. Instructions Prepare a statement of cash flows using the indirect method. Data From E23-13 Andrews Inc., a greeting card company, had the following...
-
Fred Graf, owner of Graf Interiors, is negotiating for the purchase of Terrell Galleries. The statement of financial position of Terrell is given in an abbreviated form below. Graf and Terrell agree...
-
Describe the main issues that arise when conducting historical analysis of real estate returns.
-
Identify risks faced by investors in emerging market equities over and above those that are faced by fixed-income investors in such markets.
-
A client has asked his adviser to explain the key considerations in forecasting exchange rates. The advisers firm uses two broad complementary approaches when setting expectations for exchange rate...
-
Kyungsoo Corporation produces two products, Jongin and Sehun. These account for 60% and 40% of the total sales of Kyungsoo, respectively. Variable costs ratio are 60% for Jongin and 85% for Sehun....
-
You are maintaining a subsidiary ledger account for Police-Training Expenditures for 2013. The following columns are used: Inventory purchases are initially recorded as expenditures. Record the...
-
In exercise 21.3, we began to investigate different ways of assigning property rights in the presence of externalities. A. Consider again the case of you playing music that disturbs me. (a) Begin...
-
Suppose that you have 60 hours per week of leisure time and that you can earn $25 per hour in the labor market. Part of the reason you do not have more time to work is that you need to do a variety...
-
We have said that economic profit is equal to economic revenue minus economic costwhere cash inflows or outflows are not real economic revenues or costs unless they are in fact impacted by the...
-
An unrecorded check issued during the last week of the year would most likely be discovered by the auditor when the a. Check register for the next month is reviewed. b. Bank confirmation is reviewed....
-
Which of the following cash transfers results in a misstatement of cash at December 31, 19X7? Disbursement Bank Transfer Schedule Receipt Recorded Paid by Recorded Received Transfer in books bank in...
-
The auditor should ordinarily mail confirmation requests to all banks with which the client has conducted business during the year, including those with zero balances because a. This procedure will...
Study smarter with the SolutionInn App