ECON 211 - Macroeconomic Policy

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Course ID

ECONOMICS ASSIGNMENT1
Table of Contents
Chapter 10 Output and Costs...........................................................................................................2
Answer 1......................................................................................................................................2
Answer 1..................................................................................................................................2
Answer 2..................................................................................................................................2
Chapter 11 Perfect Competition......................................................................................................3
Answer 2......................................................................................................................................4
Answer 1..................................................................................................................................4
Answer 2..................................................................................................................................5
Answer 3..................................................................................................................................5
Answer 3......................................................................................................................................6
Answer 1..................................................................................................................................6
Answer 2..................................................................................................................................7
Chapter 12 and 13 Monopoly and Monopolistic Competition........................................................8
Answer 4......................................................................................................................................8
Answer 1..................................................................................................................................8
Answer 2..................................................................................................................................9
Answer 3..................................................................................................................................9
Chapter 14: Oligopoly...................................................................................................................10
Answer 5....................................................................................................................................10
Answer 1................................................................................................................................10
Answer 2................................................................................................................................10
Answer 3................................................................................................................................10
References......................................................................................................................................12

ECONOMICS ASSIGNMENT2
Chapter 10 Output and Costs
Answer 1
Answer 1
Labor Output TVC TFC TC ATC AFC AVC MC
1 30 500 1000 1500 50.00 33.33 16.67
2 70 1000 1000 2000 28.57 14.29 14.29 12.50
3 120 1500 1000 2500 20.83 8.33 12.50 10.00
4 160 2000 1000 3000 18.75 6.25 12.50 12.50
5 190 2500 1000 3500 18.42 5.26 13.16 16.67
6 210 3000 1000 4000 19.05 4.76 14.29 25.00
7 220 3500 1000 4500 20.45 4.55 15.91 50.00
0 50 100 150 200 250
0.00
10.00
20.00
30.00
40.00
50.00
60.00
ATC, AFC, AVC and MC
ATC AFC AVC MC
Output
Cost
Answer 2

ECONOMICS ASSIGNMENT3
0 50 100 150 200 250
0.00
10.00
20.00
30.00
40.00
50.00
60.00
AP, MP, AVC and MC
AP MP AVC MC
Output
Cost, average and marginal product
The graph above reveals the relation between Average Product, Marginal Product,
Average Variable Cost and Marginal Cost. When marginal product increases average product
increases as well. During this phase, marginal product is higher than average product. Average
and marginal product equals at the maximum of average product. This correspond to the output
level of 4. After this point, both average and marginal product fall. At this phase of production,
average product is higher than marginal product. The average cost and marginal cost are the
mirror image of average and marginal product. When average product is highest then average
variable cost is the lowest. Corresponding to the lowest marginal cost, marginal product is the
highest. When both average variable cost and marginal cost are falling then average variable cost
is higher than marginal cost (1). At the minimum point of AVC, AVC equals marginal cost.
After reaching the minimum, average variable cost starts to increase. At this phase, AVC is
lower than marginal cost.