12. Graph the following table:
What is the marginal product and average product at each level of production?
Graph marginal product and average product.
Label the areas of increasing marginal productivity, diminishing productivity, and diminishing absolute productivity.
10. Draw short run marginal cost curve, short-run average cost curve, and long-run average total cost curve for an efficient firm producing where there are diseconomies of scale (L012-2)
9. Draw marginal cost, marginal revenue, and average total cost curves for a typical perfectly competitive firm in long0run equilibrium and indicate the profit-maximizing level of output and total profit for that firm (LO13-3)
9. A monopolist with a straight-line demand curve finds that it can sell 2 units at $12 or 12 units at $2 each. Its fixed cost is $20 and its marginal cost is constant at $3 per unit.
Draw the MC, ATC, MR, and demand curves for this monopolist.
At what output level would the monopolist produce?
At what output would a perfectly competitive firm produce?
5. Most magazines offer enormous subscription deals for college students. For example, Time magazine offered a one-year subscription for $5, when the over price was $5.99 per issue. This more than a 90 percent discount.
Why do magazines offer special deals to students?
How would you answer change if you were told tat most subscribers get enormous discounts, and that Times subscription revenues does not cover its costs?
What is the likely reason why magazines sell their subscriptions so cheaply?