Assignment:
Question 1
The total cost of producing 25 tons of butter is $40000. If average variable cost is $565, then what is the firm's average fixed cost?
Question 2
Lisa quit her $30000-per-year job to start her own economics consulting firm. At the end of her first year of operation, her total revenues were $111000. Her total explicit costs were $30000. What was her economic profit for the year?
Question 3
The average total cost of producing electronic calculators in a factory is $24 at the current output level of 220 units per week. If fixed cost is $705 per week, then what is the firm's variable cost?