Economics 2100 | Summer 2020 Assignment Instructions: (1) Assignment is worth 45 marks. Each question is worth 10 marks and 5 marks are rewarded for the quality of the submission. 2) Using a minimum of 10 pt. font and 1.5 spacing - the assignment can be a maximum 5 pages (including figures, references and title page) 3) State assumptions if necessary, show all work, fully label diagrams (4) All resources (and quotes) must be referenced (5) Assignment is due June 4", must be submitted via the Learning HUB as a PDF. (6) Late assignments will not be accepted unless there extenuating circumstances - please email if to discuss any issues prior to the due date. (7) This is an individual assignment. Any submissions which are not original work or duplicated will receive zero. Question 1: Patty and Ben operate a small company that produces bicycles. Their fixed cost is $ 5000 per month. They can hire workers for $ 4000 per month. Their monthly production function for bicycles is as given in the following table: Quantity of Labour Quantity of Bicycles 0 10 30 60 120 170 6 200 220 8 230 a.) For each quantity of labour calculate the following: total product (TP), marginal product (MP), average productivity (AP), average variable cost AVC), average fixed cost (AFC), average total cost (ATC), and marginal cost (MC). b.) On one diagram draw the MP and AP c.) On one diagram draw the AVC, ATC, and MC d.) At what point does Patty and Ben experience decreasing marginal productivity? At what level of output are ATC minimized? Question 2: To help airport security, Canada imposed the Air Travelers Security Charge (ATSC), an excise tax on the sale of domestic airline tickets. In 2017, the total excise tax was $ 14.96 per roundtrip domestic airline ticket. According to Stats Canada, 67.8 mm passengers travelled on one-way domestic airline trips in 2017, Econ 2100 - Microeconomics Atkinson Updated May 2020