1) Complete the table below:

Labor Capital TP(Q)MP AP TFC TVC TC AFC AVC ATC MC

0 8 0

1 8 40 100

2 8 50

3 8 50

4 8 30

5 8 200

Labor is paid a wage of $50/day.

All output is per day.

Where:

TP = total product; output; or quantity

MP = marginal product

AP = average product

TFC = total fixed cost

TVC = total variable cost

TC = total cost

AFC = Average fixed cost

AVC = average variable cost

ATC = Average total cost

MC = marginal cost

2) The firm depicted in the table below is in a PERFECTLY COMPETITIVE

MARKET. Complete the following table: (6points)

Q Price($/unit) MR TR TC AVC MC

0 $20 $200

10 $300

20 $460

30 $660

40 $1000

50 $1500

The profit maximizing price is $_________________.

The profit maximizing quantity is ________________.

The firm is making $__________________ in profit.

3) A monopolist can produce its output at a constant average and constant

marginal cost of:

ATC = MC = 5

3) The monopoly faces a demand curve given by the following function:

Q= 53-P

And a marginal revenue curve that is given by the function:

MR = 53 - 2Q

a) Draw the following:

a. The firm's demand curve

b. The firm's marginal revenue curve

c. The firm's marginal cost curve

b) What is the monopolist's profit maximizing price?

c) What is the profit maximizing quantity for this monopolist?

d) How much profit is the monopolist making?

e) Suppose the market is no longer depicted by a monopoly, but has become perfectly competitive. What would the profit maximizing price and quantity be if the market were perfectly competitive?