Reference no: EM131097741
This would be for a coffee shop.
1. Tell the story of your firm. What is the name of the firm? What do you produce? Where is your market? You must have a minimum of 10 employees and output of at least 100 units per month.
What are your inputs (capital, labor and materials) and your output?
2. Short Run Production Function and Total Product curve. You will need words, a chart and a graph here. Next, be sure to do the same for average and marginal product of labor. Explain what is going on in your graphs.
3. Short Run Costs: List all of the costs associated with your firm. Separate them into fixed and variable costs. Add them up and get your total costs. Calculate your average costs and your marginal costs. You will need a minimum of two graphs here. One for your total costs (TC, TVC & TFC), and one for your average/marginal costs (ATC, AVC, AFC & MC).
4. How much are you selling your product for at the profit maximizing price? How many units? What is your total revenue? What are your explicit & implicit costs? What are your accounting and economic profits (if there are any—sometimes student’s realize that their firm would not work the way they have it set up. That’s ok, sometimes businesses fail.)?
5. (Optional). Do the same for the long run. What are your returns to scale?
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: Tell the story of your firm. What is the name of the firm? What do you produce? Where is your market? You must have a minimum of 10 employees and output of at least 100 units per month. What are your inputs (capital, labor and materials) and your ..
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