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ECO 550 week 3 Problem Set A+
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Managerial Economics and Globalization – ECO 550
Week 3 Problem Set
Jason Hanson
1. The following table shows data for a simple production function:
Capital
Labor
TP
TFC
TVC
TC
AFC
AVC
ATC
MC
10
0
0
200
0
200
10
1
5
200
10
210
40
2
42
2
10
2
15
200
20
220
13.333
1.33333
14.6667
1
10
3
30
200
30
230
6.6667
1
7.66667
0.66667
10
4
50
200
40
240
4
0.8
4.8
0.5
10
5
75
200
50
250
2.6667
0.66667
3.33333
0.4
10
6
85
200
60
260
2.3529
0.70588
3.05882
1
10
7
90
200
70
270
2.2222
0.77778
3
2
10
8
92
200
80
280
2.1739
0.86957
3.04348
5
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