5 Questions -Economics

12. Graph the following table:

  • What is the marginal product and average product at each level of production?
  • Graph marginal product and average product.
  • Label the areas of increasing marginal productivity, diminishing productivity, and diminishing absolute productivity.

10. Draw short run marginal cost curve, short-run average cost curve, and long-run average total cost curve for an efficient firm producing where there are diseconomies of scale (L012-2)

9. Draw marginal cost, marginal revenue, and average total cost curves for a typical perfectly competitive firm in long0run equilibrium and indicate the profit-maximizing level of output and total profit for that firm (LO13-3)

9. A monopolist with a straight-line demand curve finds that it can sell 2 units at $12 or 12 units at $2 each. Its fixed cost is $20 and its marginal cost is constant at $3 per unit.

  • Draw the MC, ATC, MR, and demand curves for this monopolist.
  • At what output level would the monopolist produce?
  • At what output would a perfectly competitive firm produce?

5. Most magazines offer enormous subscription deals for college students. For example, Time magazine offered a one-year subscription for $5, when the over price was $5.99 per issue. This more than a 90 percent discount.

  • Why do magazines offer special deals to students?
  • How would you answer change if you were told tat most subscribers get enormous discounts, and that Times subscription revenues does not cover its costs?
  • What is the likely reason why magazines sell their subscriptions so cheaply?

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