ECONOMICS FOR ECONOMIC TUTOR


Week 3 Assignment Study Guide Q1. Transportation Business Sample Example: Chapter 5 Question 1 Donald’s Oyster & Pearl Company: Divers (V) Oysters (TP) ?V ?TP MP = ?TP/?V AP = TP/V 3 15 5.00 5 32 2 17 8.5 6.40 6 38 1 6 6 6.33 9 56 3 18 6 6.22 12 74 3 18 6 6.17 14 80 2 6 3 5.71 15 78 1 -2 -2 5.20 17 76 2 -2 -1 4.47 Increasing produce (amelioration MP) show to induce up to 5 abundant; regular produce show to induce from 6-12 abundant; and subordinate produce induce succeeding 12 abundant, following a while indirect produce succeeding 14 abundant.
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Week 3 Assignment Study Guide Q1. Transportation Business Sample Example: Chapter 5 Question 1 Donald’s Oyster & Pearl Company: Divers (V) Oysters (TP) ?V ?TP MP = ?TP/?V AP = TP/V 3 15 5.00 5 32 2 17 8.5 6.40 6 38 1 6 6 6.33 9 56 3 18 6 6.22 12 74 3 18 6 6.17 14 80 2 6 3 5.71 15 78 1 -2 -2 5.20 17 76 2 -2 -1 4.47 Increasing produce (amelioration MP) show to induce up to 5 abundant; regular produce show to induce from 6-12 abundant; and subordinate produce induce succeeding 12 abundant, following a while indirect produce succeeding 14 abundant. (Note that waste variables such as latitude and tides government to-boot bias the productivity of the abundant). Output per diver (Average Product) is colorable highest at 5 abundant. Assuming a regular allow of pearls per kilogram of oysters, the Marginal Cost of oysters and pearls are each minimized in the ramble of 6-12 abundante (MC is regular gone MP is regular). Q2. Average Variable Cost, Marginal Cost, Incremental Cost, and Contribution Sample Example: Chapter 6 Question 2 a. To deduce the AVC incurvation for Rakita Racquets we original accoutre the axioms in ascending classify of output levels and then count AVC = TVC/Q at each output level, as shown beneath. b. Gradient dissection finds the ?TVC values for each exexchange in Quantity (?Q) and the MC prize at the intermediate of each Quantity season is ?TVC/?Q. Note that the MC values do not soften levelly but comprehend various reversals most likely due to measurement errors. The MC incurvation is prized by cunning a level length despite these axioms apexs – it succeed gravitate at original and later soften to morose the poverty apex of the AVC incurvation (at about 38,000 units) TVC Q AVC MC Mar 19,520 925 21.103 Feb 22,160 1,525 14.531 4.40 Apr 25,960 1,925 13.486 9.50 Jan 27,860 2,450 11.371 3.62 Dec 31,850 2,850 11.175 9.98 May 32,980 3,500 9.423 1.74 Nov 33,510 4,050 8.274 0.96 Jun 35,490 4,500 7.887 4.40 ...

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