Microeconomics Homework "Production Costs"

Question

Komalavalli · Accepted Answer

2)
	Labor
	Quantity of output
	Marginal physical product of Labor
	Total cost(dollars per day)
	Marginal cost(dollars per pizza)
	0
	0
	0
	50
	0
	1
	10
	10
	140
	9
	2
	25
	15
	230
	6
	3
	45
	20
	320
	4.5
	4
	75
	30
	410
	3
	5
	100
	25
	500
	3.6
	6
	115
	15
	590
	6
3) Given:
Cost of goods sold=$30 per unit, Total no of goods produced=950, Cost of goods producing =$15per unit and the Implicit cost = $3300
Solution:
Economic profit = Total revenue-(Explicit cost + Implicit cost)
Total revenue = Total no of goods produced* Cost of goods sold
Total revenue = 950*30
                     =$28500 
Explicit cost = 950*15	
	        =$14250
Economic profit=28500-(14250+3300)
Economic profit=$10950
Now the Explicit cost = $24000, Implicit cost=0, Economic profit=$14000
Solution:
Accounting profit= Revenue - Explicit cost
Total revenue = $14000+ ($24000+0)
=$38000
Accounting profit = $38000-$24000
 Accounting profit =$14000
5)
If accounting profit is $106000 greater than economic profit, it implies implicit cost.
7) If the average total cost (ATC) is continually rising implies the MC curve is above ATC curve 
9) Given:
Total variable cost=$145
Average variable cost=$5
Solution:
AVC=TVC/q
5=145/q
Output q = 145/5
	Q =29units
Given:

Microeconomics Homework "Production Costs"

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