Changes

5. Suppose you own a company that has marginal cost (MC) = $15, average total cost = $20/unit, average variable cost = $8/unit and a price of the sold good (P) = $14.  Should you make any additional goods at these numbers?  Should you shut down your company?

5. Suppose you own a company that has marginal cost (MC) = $15, average total cost = $20/unit, average variable cost = $8/unit and a price of the sold good (P) = $14.  Should you make any additional goods at these numbers?  Should you shut down your company?

6. Suppose you are in charge of running a homeschool dinner this year.  Suppose the facility costs $500 and there are 20 tables of 10 persons each.  Your marginal cost (MC) is $18 per person.  Suppose your speaker costs $2000 in fees and expenses.  Suppose your demand curve is this: at price P=$15, quantity Q=300; at P=$35, Q=150; at P=$50, Q=100; at P=$60, Q=50; at P=$150, Q=10.  How should you price and market your tickets to make this dinner a success?

6. Suppose you decide you could profitably set the price for a homeschool dance at $15 per ticket, and it would have attracted $150 people.  You also determine that 50 out of the 150 people who would have attended would have paid $20 per ticket and 10 out of the 150 would have paid $25 per ticket, and 5 out of the 150 would have paid $30 per ticket, because they would have enjoyed and benefited so much from it.  However, the homeschool dance was never held because no one "got around to it." What is the loss in wealth or consumer surplus due to the fact that the event was ''not'' held?

===Honors===

===Honors===

10.  Question about perfectly competitive labor market.

10.  Question about perfectly competitive labor market.

 

== References ==

== References ==