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The table below shows the monthly cost of producing vintage model cars for collectors.

17/12/2020 Client: saad24vbs Deadline: 10 Days

33.


value: 10.00 points




Geppetto and Lewis decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules.




Production Possibilities Schedules


Geppetto


Lewis


Puzzles


Puppets


Puzzles


Puppets


100


  0


50


  0


  80


  4


40


  5


 60


  8


30


10


  40


12


20


15


  20


16


10


20


    0


20


  0


25




The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet.




     After they complete their trade, Geppetto will have puzzles and puppets and Lewis will have puzzles and puppets.


34.


value: 10.00 points




Ireland and Scotland both produce potatoes and sausages. The table below presents their production possibilities schedules.




Production Possibilities Schedules


Ireland


Scotland


Potatoes


(tons)


Sausage


(tons)


Potatoes


(tons)


Sausage


(tons)


    0


150


    0


200


100


120


  50


160


200


  90


100


120


300


  60


150


  80


400


  30


200


  40


500


    0


250


    0


Using the three combined amounts of production, graph the combined production possibilities frontier for Ireland and Scotland.




    Instructions: Use the tool provided 'PPF' to plot the combined production possibilities frontier point by point (3 points total).


38.


value: 10.00 points




Barney decides to quit his job as a corporate accountant (which pays $10,000 a month) and go into business for himself as a certified public accountant. He decides not to rent office space downtown, but instead sets up shop in his converted garage apartment, which he could rent out for $300 a month if he wasn’t using it as his own office. He must purchase office supplies worth $75 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $12,000 per month.




a. What are Barney’s monthly explicit costs?




     $




b. What are Barney’s monthly implicit costs?




     $




c. What are Barney’s monthly economic costs?




     $


40.


value: 10.00 points




Barney decides to quit his job as a corporate accountant (which pays $10,000 a month) and go into business for himself as a certified public accountant. He decides not to rent office space downtown, but instead sets up shop in his converted garage apartment, which he could rent out for $300 a month if he wasn’t using it as his own office. He must purchase office supplies worth $75 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $12,000 per month.




a. What are Barney’s average monthly accounting profits?




     $




b. What are Barney’s average monthly economic profits?




     $


42.


value: 10.00 points




A young Thomas Edison makes 20 light bulbs a week in his dorm room. The parts for each light bulb cost $2.00. He sells each light bulb for $5.00. General Electric offers Thomas an executive job that pays $50.00 a week. Thomas’s weekly economic profit from making light bulbs is equal to:




$.


43.


value: 10.00 points




Estella decides to set up a lemonade stand on a hot summer day. Before long, Estella’s friends all decide they would like to help. The table below shows what happens to the number of glasses of lemonade Estella and her friends can make in an hour.




Lemonade Production


Labor (workers)


Total Product


Average Product


Marginal Product


0


  0






1 (Estella)


  9




2


18


3


24


4


28


5


25






e. How many additional glasses of lemonade can Estella produce if she has four friends help her rather than three friends help her?




      glasses




f. If Estella has four friends help her, on average how many glasses of lemonade can the five friends make per hour?




      glasses


44.


value: 10.00 points




Marcel leases a garage. He must pay $500 every week for his lease regardless of how many cars he fixes. The number of cars he fixes each week depends on how many mechanics he hires. The table below summarizes his cost information.






Garage Costs




Output


Total Fixed Cost


(dollars)


Total Variable Cost


(dollars)


Total Cost


(dollars)


  0


$500


$ 0


$ 500


10


  500


  500


20


1,000


30


1,500


40


2,500


50


3,000






Graph the total fixed cost, total variable cost, and total cost curves from the data in the table. Use only the first and last data point for each curve.




    Instructions: Use the tools provided 'Total Fixed Cost,' 'Total Var. Cost,' and 'Total Cost' to plot each curve (2 points for each curve; 6 points total).


45.


value: 10.00 points




The table below shows the monthly cost of producing vintage model cars for collectors.






Vintage Model Car Costs




Output


Total Fixed Cost


(dollars)


Total Variable Cost


(dollars)


Total Cost


(dollars)


    0


$2,500


 $ 0


$2,500


100


  500


200


1,000


300


  4,500


400


3,000






Graph the total fixed cost, total variable cost, and total cost curves from the data in the table.




    Instructions: Use the tools provided 'Total Fixed Cost,' 'Total Var. Cost,' and 'Total Cost' to plot the three curves (5 points total for each curve).




 48.


value: 10.00 points




The table below shows Crystal’s total cost of producing different quantities of tie-dyed t-shirts for a local arts festival.






Cost of Tie-Dyed T-Shirts




Output


Total Cost


(dollars)


Marginal Cost


(dollars)


0


$15




1


  18


$


2


  20




3


  21




4


  24




5


  29




6


  36








 Graph the marginal cost curve for producing tie-dyed t-shirts.




    Instructions: Use the tool provided 'Marginal Cost' to plot the line point by point (6 points total).








62. value: 10.00 points




Tom likes to collect Batman and Superman comic books. The table below presents his total and marginal utilities for both types of comic books.




Tom’s Comic Book Utility


Batman Comics




Superman Comics


Quantity


Total Utility


Marginal Utility




Quantity


Total Utility


Marginal Utility


0


  0


  —




0


    0




1


40


  40




1


  58


58


2


68


  28




2


  92


34


3


88


  20




3


106


14


4


94


    6




4


110


  4


5


94


    0




5


112


  2


6


84


–10




6


112


  0


7


64


–20




7


104


–8




a. The price of a Batman comic book is $1. The price of a Superman comic book is $2. Fill in the values for the marginal utility per dollar for Batman and Superman comic books in the table below.




Tom’s Marginal Utility per Dollar for Comic Books


Batman Comics




Superman Comics


Quantity


Marginal Utility per Dollar




Quantity


Marginal Utility per Dollar


0






0




1




1


2




2


3




3


4




4


5




5


6




6


7




7




b. Suppose Tom has $5 to spend on Batman and Superman comic books (nothing else matters to Tom). If Tom wants to maximize his utility, how many of each should he buy?




      Batman comic(s) and Superman comic(s)




c. Suppose Tom has $10 to spend on Batman and Superman comic books (nothing else matters to Tom). If Tom wants to maximize his utility, how many of each should he buy?




      Batman comic(s) and Superman comic(s)




9


8


6


7


4


5


-3


1000


500


1500


2000


2500


3000


3500


5500


3


2


1


7


1


2


3


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