Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Chapter 10, Problem 21APA
To determine
The reason for differencesin countries chosen for designing and manufacturing a product.
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QUESTION 9
John lives in the small island nation of Vanuatu, and is a producer in the perfectly competitive market for galip nuts. A summary of some
of his costs, which are given in the local currency (the "vatu"), is shown below.
Quantity (kg of galip nuts)
0
30
60
90
120
150
Total Fixed Cost TFC (vatu)
5600
5600
5600
5600
5600
5600
Total Variable Cost TVC (vatu)
0
640
1520
2640
4800
9120
If John's profit-maximising quantity is 90kg of galip nuts, what is the marginal revenue per kilogram of galip nuts at this profit maximising
quantity? Answer to the nearest whole number.
Independent University, Bangladesh
ECN-201: Principles of Microeconomics
Spring 2021
Final Assignment
1. Use the table below to answer the following questions:
Costs
Total Cost Marginal
Cost
Revenues
Price ($)
Quantity
Produced
Marginal
Revenue
Total
Quantity
Demanded
Revenue
170
160
150
140
100
140
184
2
3
3
230
280
4
5
4
5
130
120
110
100
95
335
395
6
7
8
7
475
8
575
a. Find the average fixed cost and average variable cost for the 4" unit of output.
b. How much does profit change if 6 units are sold instead of 5?
Q9
ABC is a small business producing instructional modules for disabled children in public
schools. The modules produced by ABC are not differentiated and the market price is
$1,300 per module. ABC operates in a small office that rents for $600 a month and leases
computer equipment that costs $480 per month. The chart lists other cost of production.
Output (Q) Fixed
(Instructional Cost
Modules
Per month)
0
1
2
3
4
5
6
7
8
9
10
Variable Total Average Average
Cost
Cost
Fixed
Variable
(TC)
Cost
(AFC)
(FC) (VC)
1,080
400
1,350
1,900
2,500
4,100
5,400
7,300
1,480
2,430
4,280
10,880
216
135
Cost
(AVC)
475
Average
Total
Cost
(ATC)
965
Marginal
Cost
(MC)
400
450
700
1) Complete the chart and plot the following graphs: AFC, AVC, ATV, MC. Be sure
to label axis and graphs.
2) How many instructional modules ABC will produce, assuming it is profit-
maximizer? Explain your answer and show that on the graph.
3) Determine ABC's profit and shade the profit on the graph.
4) Given the level of ABC's…
Chapter 10 Solutions
Microeconomics (13th Edition)
Ch. 10.1 - Prob. 1RQCh. 10.1 - Prob. 2RQCh. 10.1 - Prob. 3RQCh. 10.1 - Prob. 4RQCh. 10.1 - Prob. 5RQCh. 10.2 - Prob. 1RQCh. 10.2 - Prob. 2RQCh. 10.2 - Prob. 3RQCh. 10.2 - Prob. 4RQCh. 10.3 - Prob. 1RQ
Ch. 10.3 - Prob. 2RQCh. 10.3 - Prob. 3RQCh. 10.4 - Prob. 1RQCh. 10.4 - Prob. 2RQCh. 10.4 - Prob. 3RQCh. 10.4 - Prob. 4RQCh. 10.5 - Prob. 1RQCh. 10.5 - Prob. 2RQCh. 10.5 - Prob. 3RQCh. 10 - Prob. 1SPACh. 10 - Prob. 2SPACh. 10 - Prob. 3SPACh. 10 - Prob. 4SPACh. 10 - Prob. 5SPACh. 10 - Prob. 6SPACh. 10 - Prob. 7SPACh. 10 - Prob. 8APACh. 10 - Prob. 9APACh. 10 - Prob. 10APACh. 10 - Prob. 11APACh. 10 - Prob. 12APACh. 10 - Prob. 13APACh. 10 - Prob. 14APACh. 10 - Prob. 15APACh. 10 - Prob. 16APACh. 10 - Prob. 17APACh. 10 - Prob. 18APACh. 10 - Prob. 19APACh. 10 - Prob. 20APACh. 10 - Prob. 21APACh. 10 - Prob. 22APACh. 10 - Prob. 23APA
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