Help! Chapters 6&7

CHAPTER 6 1. (2 points) Suppose you pay $30 for a video game. By looking at data, an economist could figure out what game you bought and how much you paid for it. But could that economist also know exactly how much utility you got from the video game? (Hint: does the economist have access to a "utilimometer?") CHAPTER 7 2. (2 points) a. What does the term "fixed costs" mean? What's an example of a fixed cost for a gas station? b. What does the term "variable costs" mean? What's an example of a variable cost for the same gas station? 3. (2 points) Using the information provided in the table below, fill in the rest of the table's missing values. Quantity Variable Fixed Total Average Average Marginal Cost Cost Cost Variable Total Cost Cost Cost 0 0 180 N/A N/A 30 180 2 70 180 3 120 180 250 180 5 500 180 4. (2 points) What are the two factors producers should compare when wanting to understand how increasing or decreasing production affects profits? 5. (2 points) a. Where does the marginal cost curve cross the average total cost curve? b. Why is this the case