Week 4 Micro

Problem 1In the suddenly knead , a immobile s of guide equal 10 ,000 . If it produces one more unit , it s upshot increase to 10 ,150What is the fringy cost of the 101th unit of turnoutWhat is the stanch s average What is the soused s average Solution 10 ,150 - 10 ,000 150Average Average cost of producing 101 units Problem 2The following fuddle represents the momently output and cost structure for a local anesthetic anesthetic pizza cuckold . The foodstuff is blamelessly free-enterprise(a) , and the market price of pizza in the area is 10 .

opportunity costsCalculate the at each rate outputAssuming that the pizza shop invariably produces and sells at least one pizza per hour , does this calculate to be a situation of short circuit- channelise or longsighted-term equilibriumSolution br and sales of pizza Price x bill sticker Revenue -br 5 0 -5 ( loss9 9 011 22 1112 36 2414 56 4218 90 7224 144 12032 224 19242 384 34254 489 43568 680 612Marginal Profit-5 (loss11131830487215093177 In a gross(a) competition , there are three types of gelts a firm may incurSupper Normal bring inNormal profitSub prevalent profit ( lossIn the long run , in perfect competition a play on usher out only incur only normal profit because of the characteristics of a perfect competitionWhere as in the short run , in perfect competition a party can earn either super normal profit or sub normal profit (lossHere in this inquire the marginal profit is increasing with every increase in the output which suggests that ! the company at this point of time is in a state of super normal profit which suggests that it is in the short run (Mankiw , 2006ReferenceMankiw , N Gregory (2006 . Principles of Microeconomics . South-Western College Pub...If you want to get a undecomposed essay, order it on our website: BestEssayCheap.com

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