Using the following production and cost schedule, fill in the remaining blank spaces for the following firm with the information provided:
# of workers Quantity FC VC TC MPL ATC AVC MC
0 0 80
1 625 130
2 1325 180
3 2200 230
4 2600 280
5 2900 330
6 3100 380
Using the results from the chart above, draw the ATC, AVC, and MC curves. Explain why those curves have their shape.
Assume the firm above is in a perfectly competitive industry. Assume the market for the product has an equilibrium price. Using the cost curves from #5 indicate whether the firm is making a profit
Explain in your own words what would happen if the government imposed a price ceiling on gasoline at $4 per gallon. Draw and show the effect you indicated. Show the effects on consumer, producer, and economic surplus based on your drawings.
Cars Computers
Germany 8000 2000
Switzerland 7000 7000
Draw the production possibilities for both countries.
Does either country hold an absolute advantage. Explain.
Does either country hold a comparative advantage. Explain.
Show a trade that benefits both countries.
Using the following utility information:
# of cups Total Utility # of slices Total Utility
0 0 0 0
1 15 1 40
2 27 2 75
3 37 3 105
4 44 4 130
5 47 5 145
6 45 6 142
Explain the consumption decisions if you had $15 to spend and each cup of Coke costs $2 and each slice of pizza is $4.
Draw a standard labor market diagram. Assume this is the market for fast-food workers. Show and explain what would happen in the market if these workers were to unionize