Principles of Microeconomics 7th Edition solutions

Principles of Microeconomics 7
This chapter discusses many types of costs: opportu-nity cost, total cost, fixed cost, variable cost, average total cost, and marginal cost. Fill in the type of cost that best completes each sentence:a.What you give up for taking some action is called the ______.b._____ is falling when marginal cost

Principles of Microeconomics 7
Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant.a.Define opportunity cost.b.What is your aunts opportunity cost of running a h

Principles of Microeconomics 7
A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught:HoursQuantity of Fish (in pounds)00110218324428530 a. What is the marginal product of each hour spent fishing?b.Use these data to graph the fishermans production function. Explain it

Principles of Microeconomics 7
Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbuss output in a given day:Workers OutputMarginal ProductTotal CostAverage Total CostMarginal Cost0 0___ _________1 20___ _________2

Principles of Microeconomics 7
You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost schedule:Quantity Average Total Cost600 players $300601301Your current level of production is 600 devices, all of which have been sold. Someone cal

Principles of Microeconomics 7
Consider the following cost information for a pizzeria:QuantityTotal Cost Variable Cost0 dozen pizzas $300 $01350 502390 903420 1204450 1505490 1906540 240a.What is the pizzerias fixed cost?b.Construc

Principles of Microeconomics 7
Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs:Quantity of Houses Painted per Month1 2 3 4 5 6 7Variable Costs$10 $20 $40 $80 $160 $320 $640Calculate average fixed cost, average variable

Principles of Microeconomics 7
The city government is considering two tax proposals:A lump-sum tax of $300 on each producer of hamburgers.A tax of $1 per burger, paid by producers of hamburgers.a.Which of the following curvesaverage fixed cost, average variable cost, average total cost, and mar-ginal costwould shi

Principles of Microeconomics 7
Janes Juice Bar has the following cost schedules:Quantity Variable Cost Total Cost0 vats of juice $ 0 $ 30110402255534575470 1005100 1306135 165a.Calculate average variable cost, average total cost, and marginal cost

Principles of Microeconomics 7
Consider the following table of long-run total costs for three different firms:Quantity 1 2 3 4 5 6 7Firm a$60 $70 $80 $90 $100 $110 $120Firm B 11 24 39 56 75 96 119Firm C 21 34 49 66