Microeconomics Theory and Applications fifth edition by Dominick Salvatore
There are 10 questions needs to be answered as directed in the attached file. Do not include any source, basically write all in your own words but if you need any help to look please look only in a book called “Microeconomics Theory and Applications fifth edition by Dominick Salvatore. Please use excel for making graphs, answer those questions in word doc. atleast use 3-4 lines to answer or explain each part of the question even it doesn’t say in question.This assignment could take more than 2 pages. Also make tables in the those questions where required. please send me both files mean excel and word doc. thanks feel free to contact me if you have any question
A firm’s short-run production function
Units of Labor/DaY
6 7 8 9
Units of Total OutPut/DaY t2,0 140
each day regardless The price of labor is $20 per day. Ten units of capital are used ‘ output Ievel. The price of capital is $50 per unit’
input. a. calculate the marginal product of each unit of labor b. Calculate total, aYerage, and marginal costs’
c. Graph the average and marginal cost functions’
and mSimizine level of output firm is.producingthe.proSrt Now assume that 2. Assume thataprice-taking this particular firm is positive #;ffi;r”fn.Ii1*;;;tii;’ii'”utio1
is earning there is an iocrease operating. what graPhicallY’
effects “f fut’;;il”iwnvr fllustrate these
“”n””t,” tl” **t”1i”.;hi;h
3.Supposethatthemarketforrawcottonisperfectiycom?etitiveandtbatthe for cotton’ reduces the demand
gxptainthe sequence of events’ a.Whathappenstothemarketpriceofcotton?Whatistheshort.runresponseofcotton
response in the market? b. What is the long-run and force 4.Constructagraphthatdepictsamonopolistearning-economicprofits’Nowassume ,”source,iosts increase *..rr”odJ or ,n”*g. io costs and explain what that as a result ,rr”*-i”1ut’io”‘”* ” “r c.”pui””,y monopolist to ior*”i-roll run’ nuPP”o over the iong
marginal cost of $10′
ld. ffil $:ff ,P;JiirT#fl.””113 ;#il;”;
graphically’ Show the above o*’t”orntt
its and price? What is
a competitive industrv?
the table: 6. Draw the relationship between labor and capital given in
100 100 100 100 100 100 100
20 30 40
36 29 25
b. t&at is the MRTSIk w-hen labor goes from 30 to 40 workers? c. ,hat is the MRTSIk u&en labor goes from 60 to 70 workers? d. Lf the marginal product of the fiftieth laborer is 9, what is the marginal
capitai ,,1’hen tne tnirty-sixth unit of capital is employed?
a- Shat do we call this figure?
7. Assuming tle income elasticity of demand for margarine is negative,
describe the on the demand effect associated with an increasein the income of margarine consumers
of substitution between two goods must equai the satisfaction’ ratio Lf the pAce of the goods for the consume to achieve maximum
8. Explain q.h1, a person’s marginal rate
you whether the the marginal cost of production is increasing, does this tell an example uu”rug”variable cost is incrlasing or decreasing? Explain and provide graphically and verbaiiY.
variable cost, does this b) If the marginal cost of production is greater than the aYerage and provide an telt you whefler the average cost is incieasing or decreasing? Explain exampie graphically and verbally. variable cost c) If the firm’s average cost curves are u-shaped, why does its average curve? Explain cost total curve achieve its minimum at a lower of output than the average and provide an example graphically and verbally’
that has $tOO to spend on qroducrlg j3ans’.Input cost $4 a unit’ How does each iucludes labor and materials. Labot costs $8 and materials 10.
nraw an isocost curve for a firrr
gxaphicafiy. of the fo[owing affectthe isocost curve? showyour answel
a- Production budget doubles.
h. Cost.of materials rises to $10 a unir c, Costs of labor andnraterials eaph rise by 25 percent’.
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