ECON 1001X Assign 3 2020 21f

pdf

School

Mount Allison University *

*We aren’t endorsed by this school

Course

1001X

Subject

Economics

Date

Jan 9, 2024

Type

pdf

Pages

Uploaded by SargentGuineaPig5768

1 Mount Allison University Principles of Microeconomics (ECON 1001X) Self-directed Distance Learning Academic Year 2020 – 2021 (Spring 2021) Assignment 3 (Based on Chapters 6 and 7) Question 1 1.1 Define consumer surplus. 1.2 Suppose a consumer’s demand curve is given by Compute consumer surplus when Question 2 Given the following table, Units consumed Total utility Marginal utility 0 1 2 3 4 5 6 0 10 ___ 25 30 ___ 34 10 8 ___ ___ 3 ___ 2.1 Complete the table. 2.2 At which rate (constant, decreasing, or increasing) is total utility increasing? Justify your answer. 2.3 “A rational consumer will purchase only one unit of the product represented by these data, since that amount maximizes marginal utility.” Do you agr ee? Explain why or why not. 2.4 “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not.

2 Question 3 Assuming a consumer has a monthly income of $3,600. She wants to spend her monthly income on 2 goods: shelters and books The price of shelters is $180 per unit and the price of books is $90 per unit. Write down the budget line equation. Question 4 Every week Jackson purchases pounds of butter and boxes of eggs at prices of $1.95 and $4.25, respectively. For the time being, he is buying these two goods in amounts such that the marginal utilities from the last units purchased of the two goods are 14 utils (for butter) and 22 utils (for eggs). Is Jackson buying the utility-maximizing combination of butter and eggs? If not, advise Jackson how to reallocate his expenditures between the two goods to maximize his utility. Question 5 Courtney likes to eat burrito sandwiches, but she eventually tires of it. The following table shows the highest price that Courtney is willing to pay for each successive burrito sandwiches per week. Burrito sandwiches Courtney ’s willingness to pay First $5.60 Second $4.85 Third $4.10 Fourth $3.58 Fifth $2.40 Sixth $0.00 5.1 Suppose Courtney was to consume 4 burrito sandwiches per week. How much is the total value she would place on her 4 weekly burrito sandwiches? 5.2 If the market price is $4.08 per each burrito sandwich, how many burrito sandwiches will Courtney consume per week? 5.3 If the market price is $3.50 per each scoop of ice cream, calculate the weekly consumer surplus that Maya gets from consuming ice creams?

3 Question 6 The table below provides the total revenues and costs for a dental practice for one year. Total Revenue ($) 995,500 Total Costs ($): Wages and salaries 680,000 Risk-free return of 2 % on owner’s capital of $ 2,000,000 40,000 Interest on bank loan 19,000 Cost of supplies 145,000 Depreciation of capital equipment 38,000 Additional wages the dentist owner could have earned in her next best alternative 0 Risk premium of 3.5 % on owner’s capital of $ 2,000,000 70,000 6.1 Calculate the amount of explicit costs. 6.2 Calculate the amount of implicit costs. 6.3 Calculate the amount of accounting profits. 6.4 Calculate the amount of economic profits. Question 7 Indicate how each of the following would shift the (a) marginal-cost curve, (b) average- variable cost curve, (c) average-fixed-cost curve, and (d) average-total-cost curve of a manufacturing firm. In each case specify the direction of the shift. 7.1 A decrease in the amount of annual property tax 7.2 An increase in the price of gasoline for Limousine Service Company in Moncton. Question 8 Fill in the blank to make the following statements correct. 8.1 The technological relationship between the inputs of factor services and outputs is called the _____________.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 8.2 A firm’s planning decisions made when some inputs are variable but others are fixed are made in the time period known as the ____________. The time period over which all factors are variable but technology is fixed is known as the ____________. 8.3 The change in total output resulting from the use of one additional unit of the variable factor is called the ____________. 8.4 If average product (AP) and marginal product (MP) curves are plotted on a graph, the AP curve is rising as long as the MP curve lies ___________ the AP curve. The AP curve is falling when the MP curve lies ___________ the AP curve. 8.5 For given factor prices, when average product per worker is at a maximum, average variable cost is at a __________. 8.6 Eventually diminishing marginal product of the variable factor implies eventually _________ marginal costs. 8.7 If marginal costs are above average costs, then producing one more unit of output will _________ the average cost. Question 9 A company can produce computer chips according to the following schedule. Complete the table. Inputs of Capital Number of Output Average Marginal (per week) (per week) Product Product 0 0 1 14 2 26 3 37 4 46 5 53 6 59 7 62 8 64 9 64 10 61

Related Documents

BUS 626 W3D2.docx

BUS 626 W3D1.docx

BUS 626 W1D2.docx

Question 1 of 50Hcourse.docx

23-24 Fall 102 Exam 1A.pdf

CQMS_442_-_Project.edited.docx

ECON 1001X Assign 2 2020 21f.pdf

ECON 1001X Assign 1 2020 21f (1).pdf

HMGT 435 Assignment 2 final.docx

HMGT 435 assignment 3 final.docx

math assessment.docx

FINCB 571_Final Reflection.docx

Recommended textbooks for you

ECON MICRO

Economics

ISBN:9781337000536

Author:William A. McEachern

Publisher:Cengage Learning

Economics:

Economics

ISBN:9781285859460

Author:BOYES, William

Publisher:Cengage Learning

Microeconomics A Contemporary Intro

Economics

ISBN:9781285635101

Author:MCEACHERN

Publisher:Cengage

Essentials of Economics (MindTap Course List)

Economics

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:Cengage Learning

Principles of Economics 2e

Economics

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:OpenStax

ECON MACRO

Economics

ISBN:9781337000529

Author:William A. McEachern

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

ECON MICRO
Economics
ISBN:9781337000536
Author:William A. McEachern
Publisher:Cengage Learning
Economics:
Economics
ISBN:9781285859460
Author:BOYES, William
Publisher:Cengage Learning
Microeconomics A Contemporary Intro
Economics
ISBN:9781285635101
Author:MCEACHERN
Publisher:Cengage
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
ECON MACRO
Economics
ISBN:9781337000529
Author:William A. McEachern
Publisher:Cengage Learning