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# Chapter 5 1. The following table shows data simple

### Customer Question

Chapter 5 1. The following table shows data for a simple production function. Capital (K) Labor (L) Total Product (TP) Average Product (AP) Marginal Product (MP) 10 0 0 — — 10 1 5 10 2 15 10 3 30 10 4 50 10 5 75 10 6 85 10 7 90 10 8 92 10 9 92 10 10 90
a. From the information in the table, calculate marginal and average products. b. Graph the three functions (put total product on one graph and marginal and average products on another). c. For what range of output does this function have diminishing marginal
returns? d. At what output is average product maximized? 3. Jim is considering quitting his job and using his savings to start a small business. He expects that his costs will consist of a lease on the building, inventory, wages for two workers, electricity,
and insurance. a. Identify which costs are explicit and which are opportunity (implicit) costs. b. Identify which costs are fixed and which are variable. 5. The following table shows data for the simple production function used in Question 1. Capital costs
this firm \$20 per unit, and labor costs \$10 per worker. K L TP TFC TVC TC AFC AVC ATC MC 10 0 0 10 1 5 10 2 15 10 3 30 10 4 50 10 5 75 10 6 85 10 7 90 10 8 92 a. From the information in the table, calculate total fixed cost (TFC), total variable cost (TVC),
total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC). b. Graph your results, putting TFC, TVC, and TC on one graph and AFC, AVC, ATC, and MC on another. c. At what point is average total cost
minimized? At what point is average variable cost minimized 3. Industry studies often suggest that firms may have long-run average cost curves that show some output range over which there are economies of scale and a wide range of output over which long-run
average cost is constant; finally, at very high output, there are diseconomies of scale. A. Draw a representative long-run average cost curve, and indicate the minimum efficient scale. B. Would you expect that firms in an industry like this would all produce
about the same level of output? Why?
Submitted: 1 year ago.
Category: Multiple Problems
Customer: replied 1 year ago.
question is all jumbled up, please review attachment for cleaner format
Expert:  F. Naz replied 1 year ago.
Customer: replied 1 year ago.
5 hours
Expert:  F. Naz replied 1 year ago.
Sorry, I am unable to provide you the answer in such a short time, thanks.
Customer: replied 1 year ago.
ok thank you
Expert:  F. Naz replied 1 year ago.