th the settings to answer the following questions. graph window showing Production, what happens t of the production functions move. e graph window showing Costs, what happens to the me of the cost functions shift, but not all of them. move the Productivity Index left and right, which colum Output MP Fixed Costs Wariable Costs Total Costs TC
th the settings to answer the following questions. graph window showing Production, what happens t of the production functions move. e graph window showing Costs, what happens to the me of the cost functions shift, but not all of them. move the Productivity Index left and right, which colum Output MP Fixed Costs Wariable Costs Total Costs TC
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Instructions: Click the buttons above the graphing window to show either production functions or cost functions. Type in va
Fixed Costs or Wage Rate (the cost per worker). Move the Productivity Index right to see the effect of increasing productivi
25%. The table and graphs will update as Settings are changed. If needed, click "Reset" to return the tool to its original se
Interact with the settings to answer the following questions.
a. With the graph window showing Production, what happens to the graphs the wage rate is increased?
None of the production functions move.
b. With the graph window showing Costs, what happens to the graphs when fixed costs are decreased?
Some of the cost functions shift, but not all of them.
c. As you move the Productivity Index left and right, which columns in the Calculations window change? Mark all that app
OL
Output
MP
Fixed Costs
Variable Costs
Total Costs
ATC
Marginal Costs
Transcribed Image Text:Given the following interactive:
Production and Costs
II. GRAPHS
Output (Q)
700
600
500
400
300
200
100
AP, MP
100
60
0
20
0
2
2
4
6
Production
8
TP = Q
10
AP
MP
Costs
8 10
12
12
L
L Output
0
1
2
3
4
5
6
7
CALCULATIONS
0.0
10
20.0
120.0
60.0 40.0
380.0
8 420.0
9 450.0
200.0 80.0
270.0
330.0
MP
470.0
20.0
12 480.0
60.0
70.0
60.0
50.0
40.0
30.0
20.0
11 480.0 10.0
0.0
Fixed Variable
Costs
Costs
100
0
100
100
100
100
100
100
100.
100
100
100
100
100
20
40
60
80
100
120
140
160
180
200
220
240
Total
Costs
100
120
140
160
180
200
220
240
260
280
300
320
340
ATC
6.000 1.000
2.333
1.333
0.900
0.741
0.667
0.619
0.622
Marginal
Costs
0.638
0.500
0.708
0.333
0.632 0.400
0.250
0.286
0.333
0.500
0.667
1.000
0.667 2.000
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