Please fill in the missing data for the blank lines (#8) on the graph and then questions below.
|
Output (Instructional
Modules
per Month)
|
Fixed
Costs
|
Variable
Costs
|
Total
Cost
|
Average
Fixed
Cost
|
Average
Variable
Cost
|
Average
Total
Cost
|
Marginal
Cost
|
|
0
|
$1080
|
0
|
$1080
|
0
|
0
|
0
|
|
|
1
|
$1,080
|
$ 400
|
$1,480
|
$1080
|
$400
|
$1480
|
$400
|
|
2
|
$1,080
|
$850
|
$1930
|
$540
|
$425
|
$965
|
$450
|
|
3
|
$1,080
|
$1,350
|
$2,430
|
$450
|
$810
|
$1260
|
$500
|
|
4
|
$1,080
|
$1900
|
$2980
|
$270
|
$475
|
$745
|
$550
|
|
5
|
$1,080
|
$2,500
|
$3580
|
$216
|
$500
|
$716
|
$600
|
|
6
|
$1,080
|
$3200
|
$4,280
|
$180
|
$533.33
|
4713.33
|
$700
|
|
7
|
$1,080
|
$4,100
|
$5180
|
$154.28
|
$585.71
|
$739.99
|
$900
|
|
8
|
$1,080
|
|
|
$135
|
|
|
|
|
9
|
$1,080
|
$7,300
|
$8380
|
$120
|
$811.11
|
$931.11
|
|
|
10
|
$1,080
|
$8720
|
$980
|
$108
|
$980
|
$1088.00
|
$1420
|
Do these look like they should? Is this table describing the short run or the long run? How do you know?
2. Graph the budget line and add the indifference curve for the following situation>
Assumptions: You have a $90 budge
Cost of Pillow is $15
Cost of Shoes is $45
Cost for shoes changse to $30
Hint: You must spend 1/2 of the budget on each.
Also, graph the demand curve based on the above information. Make sure that you explain what is going on in each graph - using words.