1) Draw a total product curve of a representative firm in the short run (label axes...

 

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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.

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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