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Microeconomics

Question in Microeconomics

VC MC AVC Number of Figs 0 1 2 3 FCTC ATC 100 90 90 135 80 Table 8.4 .com 123 121 Table 8.4 presents the cost schedule for David's Figs. If David produces terofis Davids are: A) SO. B) $90 C) $100 D) $130 131 Table 8.4 presents the cost schedule for David's Figs. If David produces four fies. David's total costs are: A) $60 B) $75. $100 D) 5400 13) 14 14 Table 8.4 presents the cost schedule for David's Figs. If David produces two figs, David's marginal costs are: B) $90 $100 D) $170. A) 580 15) 15) Suppose Le Coqa Vin restaurant opens its second restaurant in Miami using exactly the same floor plan, capital equipment, food, and number of workers as its exising restaurant. However, it hired an American manager who does not speak French. All the other restaurant workers, including the Codon Bleu trained tempremental French Chef, only speak French. As a result of poor communications the second restaurant produced fewer meals per month than the first. Then the long run average cost curve of Le Coq a Vin would be _ _and the company experiences A) upward sloping diseconomies scale C) horizontal;diseconomies of scale B) horizontal, economies of scale D) upward sloping economies of scale 16) Edie the entrepreneur takes one week to review a client's investment portfolio She reviews fifty (50) 16) portfolios per year. Edie uses computer hardware and software in her portfolio review business that can be sold for $100,000 at any time. She could take the $100,000 from selling the computer hardwar and software, invest it, and earn 10% interest per year. Edie could earn $2,000 a week as a golf instructor to LPGA and PGA tour players instead of being a portfolio advisor. Edie's annual total economic cost of her portfolio reviews business is A) $110,000 B) $100,000 C) $10,000 D) $90,000 17) 17) Given Edie's current output level of fifty (50) portfolio reviews, her average total costs of a portfolio review is A) $2,000 B) $2,200 $1,000 D) $3,000 18) 18) Given Edie's current output level of fifty (50) portfolio reviews, her marginal cost of an additional portfolio review is A) $3.000 B) $2,200 C) $2,000 D) $1,000

Answer 1

Solution Number of Figs. MC AVC. Es ITC e- 90 90 90_100190 190 -110_2.0 85 100 270 135.... -240 70 80 100 340 12:33 | 300 | 60/75 100 400 1.00 Table 8.4 ® – Option (C) ☺ - Option (6) BD - Option CA2 - Option (A) @___Option (B)_e 50 portfolio puyear X $ 200 _ optica CB) le $ 100000+ $10000 50 py ® - Option(c) CS Scanned CamScanner