Economics Homework Six Answers - Student Fifteen
1. Fixed costs can be easily identified by seeing what the total costs are when output is zero.
- Correct. But how about the second part of the question? Always be sure to understand completely each question.
- Excellent, may use as model.
3. A football team may need two recievers for the upcoming year. They will get two recievers and sign them to a one year deal. But on the other hand they could raft a young reciever out of college to part of their team for a while.
- Right, but clear which which the short run (the trade) and which is the long run (the draft out of college). Also, note spelling: "receiver", not "reciever".
- Free pass on question.
5. The long run cost in this instance are the costs of the time you spend in high school taking tests and classes and the cost that you pay for a good college. This has an advantage over the short run cost of dropping out of school, because the money and the time that you spend on college will be paid back to you with the money that you make with your good job.
6. The fixed cost is million dollars. The average variable cost will be $20,000. The average total cost will be $40,000. The marginal cost will be $18,000.
- Superb! One of the few in the class to answer all correct.
7.(a)increase. (b)increase. (c) increase.
- Only the answer to (c) is correct. The answers to (a) and (b) are incorrect, because MC and AVC remain constant with an increase in licensing fees. (Minus 2).
8. You lose 8 dollars in economic profits. You lose nothing in accounting profits.
- 68/70. Excellent work on a difficult assignment.--Andy Schlafly 16:51, 25 October 2009 (EDT)