ECON 101 Saudi Electronic University Microeconomics Question

User Generated

wbwa

Economics

econ 101

Saudi electronic university

ECON

Description

no plagiarism no match please

use times new roman size 12 double spaced font for all answers

Unformatted Attachment Preview

College of Administrative and Financial Sciences Assignment-2 Deadline: 20/03/2021 Course Name: MICROECONOMICS Student’s Name: Course Code: ECON101 Student’s ID Number: Semester: 2 CRN: Academic Year: 1442 H For Instructor’s Use only Instructor’s Name: Students’ Grade: Marks Obtained/ 5 • Level of Marks: High/Middle/Low The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Submissions without this cover page will NOT be accepted. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Question-1 Marks: 5 The table below shows the short run cost for producing bicycles. Complete all missing values in table below: Labor Output Fixed Variable cost cost 0 0 $60 0 1 1 $60 70$ 2 6 $60 $140 3 11 $60 $210 4 15 $60 280$ 5 13 $60 $350 6 12 $60 $420 Total Average Average Average Marginal cost fixed variable total cost cost cost cost 1. Draw the short run total cost curve (show the total cost, fixed cost, variable cost). 2. Where the marginal cost and average total cost intercept? Explain the relationship between the marginal cost and the average total cost with the help of graph. Question 2 1. When do firms decide to shut down production in the short run? Explain it. 2. How is the short run average cost curve and the long run average cost curve shaped? What is the difference between them? Question 3 The following graph represents the situation of Sindbad’s caps, a firm selling caps in the perfectly competitive caps industry. 1) How much output should Sindbad produce to maximize his profit, if the market price is equal to $11? 2) How much profit (loss) will he earn? Indicate the profit (loss) area on the graph. 3) Suppose Sindbad decides to shut down. What would his loss be?
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Hey there! Here's the assignment. Let me know if you have any questions. 😀

College of Administrative and Financial Sciences

Assignment-2

Deadline: 20/03/2021

Course Name: MICROECONOMICS

Student’s Name:

Course Code: ECON101

Student’s ID Number:

Semester: 2

CRN:
Academic Year: 1442 H

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/ 5


Level of Marks: High/Middle/Low

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder. Submissions without this cover page will NOT be accepted.



Assignments submitted through email will not be accepted.



Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.



Students must mention question number clearly in their answer.



Late submission will NOT be accepted.



Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks.



All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).

Question-1

Marks: 5

The table below shows the short run cost for producing bicycles.
Complete all missing values in table below:
Labor Output

Fixed Variable
cost
cost
$0.00

Total Average Average Average Marginal
cost
fixed variable
total
cost
cost
cost
cost
$60.00

0

0 $60.00

1

1 $60.00

$70.00 $130.00

$60.00

$70.00

$130.00

$70.00

2

6 $60.00

$140.00 $200.00

$10.00

$23.33

$33.33

$14.00

3

11 $60.00

$210.00 $270.00

$5.45

$19.09

$24.55

$14.00

4

15 $60.00

$280.00 $340.00

$4.00

$18.67

$22.67

$17.50

5

13 $60.00

$350.00 $410.00

$4.62

$26.92

$31.54

$35.00

6

12 $60.00

$420.00 $480.00

$5.00

$35.00

$40.00

$70.00

1. Draw the short run total cost curve (show the total cost, fixed cost, variable cost).
Total Cost
Price ($)
Variable Cost

Fixed Cost
Quantity (bicycles)

2. Where the marginal cost and average total cost intercept? Explain the relationship between
the marginal cost and the average total cost with the help of graph.

Marginal Cost
Price ($)

Average Total Cost

Average Variable Cost

Average Fixed Cost
Quantity (bicycles)

The marginal cost (blue) curve and the average total cost (yellow) curve has an intersection
at the lowest point of the average total cost curve. The marginal cost and total cost are
related to one another such that the marginal cost is equal to the change in value of the total
cost when one more unit of product is produced. The minimum point at which the MC and
ATC curves intersect is known as the breakeven point wherein the profit is equal to ze...


Anonymous
Very useful material for studying!

Studypool
4.7
Indeed
4.5
Sitejabber
4.4

Similar Content

Related Tags