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AP Microeconomics Prd 1 A a Define Using Graphs Where Appropriate Key Terms and Concepts Relating to Production and Cost B Explain Using Topic 3 2 Questions

Calculate short-run cost measures from tables and explain how fixed inputs, productivity, input prices, and marginal returns shape cost curves.

Syllabus
Effective Fall 2022
Course
AP Microeconomics

Exam points

  • calculate total, fixed and variable costs and their per-unit averages from tables
  • calculate marginal cost from the change in total or variable cost divided by output change
  • use marginal cost relative to AVC or ATC to identify whether each average is rising or falling
  • identify the AVC and ATC minima where marginal cost intersects each curve
  • connect diminishing marginal product to the upward-sloping portion of marginal cost

AP Microeconomics Prd 1 A a Define Using Graphs Where Appropriate Key Terms and Concepts Relating to Production and Cost B Explain Using Topic 3 2 Questions question 1

[Maximum number: 2]

The table provided shows the short-run production function for Lowen Feline, a profit-maximizing firm that produces cat food.

Table for Question AP Microeconomics Prd 1 A a Define Using Graphs Where Appropriate Key Terms and Concepts Relating to Production and Cost B Explain Using Topic 3 2 Questions question 1 — AP Microeconomics

Lowen Feline sells as many bags of cat food as it wants at a market price of $ 10 per bag and hires as many workers as it wants at a market wage of $ 18.

Question (a)

(a)

Lowen Feline's fixed cost is $ 90. Calculate the average fixed cost if Lowen Feline hires 6 workers. Show your work.

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Question (b)

(b)

Assume labor is the only variable input to Lowen Feline. Calculate the marginal cost if Lowen Feline increases output from 27 to 30 units. Show your work.

[ 1 ]
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