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Same as before, these problem sets contain concepts from the modules

Economics

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Same as before, these problem sets contain concepts from the modules. You can work with other students to do these problem sets...in fact I encourage it. And, I will be putting together groups later on. But each student needs to submit their own answers online  by the due date and they need to be in your own words. 

This is a chance to earn more points (up to 20). Effort matters. You may still get a high score on this problem set even if every answer is not exactly correct as long as you are close and show that you really tried. 

And, please reach out for help. Come to Zoom office hours or email me any time. My goal is to work with you on these. 

Click the following link to download the problem set for this module. If you would like to access this material in a different format please let me know and I am more than happy to help provide the material in another way:

• Production and Costs Problem Set

  Production and Costs Problem Set[1]

   

   

   

  1. Suppose that the price of Apples is $2. In addition, suppose that the firm's total costs are $21 and that the firm currently sells 90 Apples.

  Given this information, what is this firm's total revenue?

   

   

  2. The table below shows data for the production of Avocados for an individual firm operating in a perfectly competitive market.

  Quantity of Avocados	Total Revenue	Total Costs
  0	0	30
  10	40	50
  20	80	62
  30	120	71
  40	160	80
  50	200	89
  60	240	100
  70	280	130
  80	320	200

  Given this data, what is the per unit price of Avocados?

   

   

   

   

  Use the following information to answer questions 3 through 5:

  The graph below shows data for an individual firm.

   

  

   

   

  3. Curve 1 shows:

• variable costs
• total costs
• fixed costs

•  

  4. Curve 2 shows:

• variable costs
• total costs
• fixed costs

•  

  5. Curve 3 shows:

• variable costs
• total costs
• fixed costs

•  

   

  Use the following information to answer questions 6 through 9:

  The table below shows data for Apples for an individual firm.

  Quantity of Apples	Fixed Costs (FC)	Variable Costs (VC)	Total Costs (TC)
  0	?	?	80
  1	80	117	197
  2	80	252	332
  3	?	?	485
  4	80	?	656
  5	80	765	845
  6	80	?	1052
  7	?	1197	1277
  8	80	1440	1520

   

  6. Given this data, what are fixed costs when quantity is 0?

   

  7. Given this data, what are variable costs when quantity is 0?

   

  8.  Given this data, what are variable costs when quantity is 3?

   

  9. Given this data, what are variable costs when quantity is 4?

   

  10. The table below shows data for Apples for an individual firm.

  Quantity of Apples	Fixed Costs	Variable Costs
  1	90	143
  2	90	308
  3	90	495
  4	90	704
  5	90	935
  6	90	1188
  7	90	1463
  8	90	1760

  Given this data, what are total costs when quantity is 6?

   

  11. The graph below shows cost curves for a firm operating in a perfectly competitive market.

   

  

   

   

  Curve 3 shows

• Average Variable Costs (AVC)
• Average Fixed Costs (AFC)
• Average Total Costs (ATC)
• Marginal Costs (MC)

•  

   

   

  12. The graph below shows cost curves for a firm operating in a perfectly competitive market.

   

  

   

  Curve One shows

• Average Variable Costs (AVC)
• Average Fixed Costs (AFC)
• Average Total Costs (ATC)
• Marginal Costs (MC)

•  

   

   

  13. The graph below shows cost curves for a firm operating in a perfectly competitive market.

   

  

   

  Curve Two shows

• Average Variable Costs (AVC)
• Average Fixed Costs (AFC)
• Average Total Costs (ATC)
• Marginal Costs (MC)

•  

   

   

   

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  [1] This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https://www.desmos.com/calculator.