Week 4 Micro

Problem 1In the suddenly knead , a immobile s of retrieve equal 10 ,000 . If it produces one more unit , it s consequence increase to 10 ,150What is the fringy cost of the 101th unit of turnoutWhat is the business satisfying s average What is the firm s average Solution 10 ,150 - 10 ,000 150Average Average cost of producing 101 units Problem 2The following fudge represents the minutely output and cost structure for a topical anesthetic anesthetic pizza tell on . The foodstuff is blamelessly militant , and the market price of pizza in the area is 10 . opportunity costsCalculate the at each rate outputAssuming that the pizza shop invariably produces and sells at least one pizza per hour , does this calculate to be a situation of on the spur of the moment- lock or longsighted-term equilibriumSolution br and sales of pizza Price x invoice Revenue -br 5 0 -5 ( loss9 9 011 22 1112 36 2414 56 4218 90 7224 144 12032 224 19242 384 34254 489 43568 680 612Marginal Profit-5 (loss11131830487215093177 In a consummate competition , there are three types of gelts a firm may incurSupper Normal gain groundNormal profitSub usual profit ( lossIn the long run , in perfect competition a play on usher out only incur only normal profit because of the characteristics of a perfect competitionWhere as in the short run , in perfect competition a fraternity can earn either super normal profit or sub normal profit (lossHere in this apparent movement the marginal profit is increasing with every increase in the output which suggests that the company at this point of time is in a state of super normal profit which suggests that it is in the short run (Mankiw , 2006ReferenceMankiw , N Gregory (2006 . Principles of Microeconomics . South-Western College Pub...If you want to get a undecomposed essay, order it on our website: OrderEssay.net

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