Homework
#7, Econ 306, Prof. Hanson.
1. How would each of the following effect the long-run supply of apples?
a. Apple pickers form a union
b. Consumers learn that apples cause cancer.
c. New apple-eating bugs invade U.S.
d. A machine is introduced that shines apples at a cost of $0.03 each, when the marginal consumer values shined apples an extra $0.02 each.
2. The following table describes the costs of some firm.
a.
Fill
in the three missing table entries.
b.
What
is the fixed cost of production?
c.
If
the firm is competitive and faces a price of 15, how much will it supply?
d.
If
the firm is competitive and faces a price of 13, how much will it supply?
|
Q |
TC |
MC |
AC |
|
0 |
50 |
- |
- |
|
1 |
50 |
0 |
50.0 |
|
2 |
52 |
2 |
26.0 |
|
3 |
56 |
4 |
18.7 |
|
4 |
62 |
6 |
15.5 |
|
5 |
70 |
8 |
|
|
6 |
|
10 |
13.3 |
|
7 |
92 |
12 |
13.1 |
|
8 |
106 |
14 |
13.3 |
|
9 |
122 |
16 |
13.6 |
|
10 |
139 |
|
13.9 |
3.