26 Variable Costs = $1500 per week per worker + $45 parts and utilities per mower 27 28 1. Fill out all the blank cells in the table based on the information given. 29 2. At what level of the variable input does Diminishing Returns set in? 30 3. At what level of output (Total Product) does increasing Marginal cost set in? 31 4. What is the rule for maximizing profit for a competitive firm? 32 5. If the competitive market price for lawn mowers was $145, calculate the profit or loss the firm would experience. 33 6. Would the firm produce lawn mowers if the price of lawn mowers was $145? Why or why not? 34 7. If the competitive market price for lawn mowers was $170, calculate the profit or loss the firm would experience. 35 8. Would the firm produce lawn mowers if the price of lawn mowers was $170? Why or why not? 36 9. If the competitive market price for lawn mowers was $420, calculate the profit or loss the firm would experience. 37 10. Would the firm produce lawn mowers if the price of lawn mowers was $420? Why or why not? 38 11.At approximately what price/output combination is this firm's shut down point? 39 12.At approximately what price/output combination is this firm's break even point? 40 13.Describe this firm's short run supply curve from the data in the spreadsheet.
26 Variable Costs = $1500 per week per worker + $45 parts and utilities per mower 27 28 1. Fill out all the blank cells in the table based on the information given. 29 2. At what level of the variable input does Diminishing Returns set in? 30 3. At what level of output (Total Product) does increasing Marginal cost set in? 31 4. What is the rule for maximizing profit for a competitive firm? 32 5. If the competitive market price for lawn mowers was $145, calculate the profit or loss the firm would experience. 33 6. Would the firm produce lawn mowers if the price of lawn mowers was $145? Why or why not? 34 7. If the competitive market price for lawn mowers was $170, calculate the profit or loss the firm would experience. 35 8. Would the firm produce lawn mowers if the price of lawn mowers was $170? Why or why not? 36 9. If the competitive market price for lawn mowers was $420, calculate the profit or loss the firm would experience. 37 10. Would the firm produce lawn mowers if the price of lawn mowers was $420? Why or why not? 38 11.At approximately what price/output combination is this firm's shut down point? 39 12.At approximately what price/output combination is this firm's break even point? 40 13.Describe this firm's short run supply curve from the data in the spreadsheet.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Column A: K = units of capital
Column B: L =
Column C: TP =
Column D: MPP = Marginal Physical Product
Column E: FC = Fixed Cost
Column F: VLC = Variable Labor Cost
Column G: VMC = Variable Material Cost (parts and utilities)
Column H: TVC = Total Variable Cost = VLC + VMC
Column I: TC = Total Cost = FC + TVC
Column J: AFC = Average Fixed Cost Fixed Cost/TP = FC/Q
Column K: AVTC = Average Variable Total Cost = VTC/Q
Column L: ATC = Average Total Cost = Total Cost/Q
Column M: MC = Marginal Cost = (Change in TC/Change in TP)
(*: MC is really average MC per unit because we are changing outp
units of labor per 40 hour week
Total Product = Quantity of output per week = Q
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Transcribed Image Text:26 Variable Costs = $1500 per week per worker + $45 parts and utilities per mower
27
28 1. Fill out all the blank cells in the table based on the information given.
29 2. At what level of the variable input does Diminishing Returns set in?
30 3. At what level of output (Total Product) does increasing Marginal cost set in?
31 4. What is the rule for maximizing profit for a competitive firm?
32 5. If the competitive market price for lawn mowers was $145, calculate the profit or loss the firm would experience.
33 6. Would the firm produce lawn mowers if the price of lawn mowers was $145? Why or why not?
34 7. If the competitive market price for lawn mowers was $170, calculate the profit or loss the firm would experience.
35 8. Would the firm produce lawn mowers if the price of lawn mowers was $170? Why or why not?
36 9. If the competitive market price for lawn mowers was $420, calculate the profit or loss the firm would experience.
37 10. Would the firm produce lawn mowers if the price of lawn mowers was $420? Why or why not?
38 11.At approximately what price/output combination is this firm's shut down point?
39 12.At approximately what price/output combination is this firm's break even point?
40 13.Describe this firm's short run supply curve from the data in the spreadsheet.
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