Reference no: EM13879784

1) Complete the table below:

Labor	Capital	TP (Q)	MP	AP	TFC	TVC	TC	AFC	AVC	ATC	MC
0	8	0					100
1	8		40
2	8			50
3	8			50
4	8		30
5	8	200

Labor is paid a wage of $50/day. All output is per day.

Where:

TP = total product; output; or quantity

MP = marginal product
AP = average product ,

TFC = total fixed cost

TVC = total variable cost

TC = total cost
AFC = Average fixed cost

AVC = average variable cost

ATC = Average total cost

MC = marginal cost

2) The firm depicted in the table below is in a PERFECTLY COMPETITIVE MARKET. Complete the following table:

Quantity	Price ($/unit)	Marginal revenue	Total revenue	Total cost	Average total cost	Marginal cost
0	$20			$200
10				$300
20				$460
30				$660
40				$1000
50				$1500

The profit maximizing price is $ . The profit maximizing quantity is . The firm is making $ in profit.

3)  A monopolist can produce its output at a constant average and constant marginal cost of:

ATC = MC = 5

The monopoly faces a demand curve given by the following function:

Q= 53-P

And a marginal revenue curve that is given by the function:

MR = 53 - 2Q

a) Draw the following:

a. The firm's demand curve

b. The firm's marginal revenue curve

c. The firm's marginal cost curve

b) What is the monopolist's profit maximizing price?

c) What is the profit maximizing quantity for this monopolist?

d) How much profit is the monopolist making?

e) Suppose the market is no longer depicted by a monopoly, but has become perfectly competitive. What would the profit maximizing price and quantity be if the market were perfectly competitive?