Lecture 4 Practice Questions

From Frank text: In-chapter exercises 9.1-9.4, 10.2, 10.4.

Additional questions:

1.  Fill in the blanks in the following table:

L / q / APL / MPL
0 / 0 / --
5
1 / ____ / ____
6
2 / ____ / ____
5
3 / ____ / ____

2.  Fill in the blanks in the following table:

L / q / APL / MPL
0 / 0 / --
____
____ / 15 / 3
6
____ / 45 / ____
____
____ / 80 / 5.333

3.  Fill in the blanks in the following table:

q / TVC / TC / MC
0 / 0 / 20
10
1 / ____ / ____
15
2 / ____ / ____
20
3 / ____ / ____

4.  The table below describes the productivity of a firm that produces stuffed animals. Fill in the blanks in the table, so that for each level of labor (L) the table tells you the quantity (q) of stuffed animals, the average product of labor (APL), and the marginal product of labor (MPL).

L / q / APL / MPL
0 / 0 / --
10
5 / 50 / ____
20
10 / ____ / 15
____
15 / 275 / ____
20
20 / ____ / ____
10
25 / 425 / 17
5
30 / ____ / 15

5.  The stuffed animal company described above has a short-run fixed cost of $100 for the period of time in question. The table below describes the firm’s cost structure. Fill in the blanks so the table shows total fixed cost (TFC), total variable cost (TVC), total cost (TC), average total cost (ATC), and marginal cost (MC) for each quantity. Fill in the missing quantities from your calculations above.

q / TFC / TVC / TC / ATC / MC
0 / 100 / 0 / 100 / --
0.8
50 / 100 / ___ / 140 / ____
____
____ / 100 / 80 / 180 / ____
0.32
275 / 100 / ____ / ____ / 0.8
____
____ / 100 / 160 / 260 / 0.69
0.8
425 / 100 / ____ / ____ / 0.71
1.6
____ / 100 / 240 / 340 / ____