Questions:
QUESTION 1
Use the following information to answer questions 1-15
Consider a firm that daily rents machinery for the cost of $1100 and employs workers at the cost of $50 for a full day of work. The following table describes the production function of the firm. Fill the table such that you can make some production decisions for this firm.
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Units of Labor
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Units of Production
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Fixed Costs
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Variable Costs
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Total Costs
|
Average Variable Costs
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Average Total Costs
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Marginal Cost
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1
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11.00
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2
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16.55
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3
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19.79
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4
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22.09
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5
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23.88
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6
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25.33
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7
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26.57
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8
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27.64
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9
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28.58
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10
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29.42
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11
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30.18
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12
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30.88
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13
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31.52
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14
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32.11
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15
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32.66
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What is the level of production when 10 units of labor are employed?
QUESTION 2
What is the fixed cost of production when 10 units of labor are employed?
QUESTION 3
What is the variable cost of production when 10 units of labor are employed?
QUESTION 4
What is the total cost of production when 10 units of labor are employed?
QUESTION 5
What is the average variable cost of production when 10 units of labor are employed?
QUESTION 6
What is the average total cost of production when 10 units of labor are employed?
QUESTION 7
What is the marginal cost of production when 10 units of labor are employed?
QUESTION 8
What is the minimum amount of workers needed to be employed if the firm were to produce 24 units of the good?
QUESTION 9
At what approximate level of production is the marginal cost of production equal to the average total cost?
QUESTION 10
What would be the firm's level of production if the price of the good was $60?
QUESTION 11
What would be the firm's profits at equilibrium if the price of the good was $78?
QUESTION 12
What would be the price of the good if the firm is employing 8 workers at equilibrium?
QUESTION 13
What would be the profit of the firm if the firm is employing 8 workers at equilibrium?
QUESTION 14
What would be the price of the good if the firm is employing 9 workers at equilibrium?
QUESTION 15
What would be the profit of the firm if the firm is employing 9 workers at equilibrium?