Changes

==Assignment==

==Assignment==

Read and, if necessary, reread the above lecture.  '''''Complete any seven of the first eight questions below''''':

Read and, if necessary, reread the above lecture.  '''''Complete any six of the first seven questions below''''':

1.  Fixed costs can be easily identified by seeing what the total costs are when output is _______.  Separately, give an example of a variable cost.

1.  Fixed costs can be easily identified by seeing what the total costs are when output is _______.  Separately, give an example of a variable cost.

6.  Suppose you spent one million dollars to build your factory, and another million dollars for materials and labor and electricity to make 50 cars.  What is your fixed cost, average variable cost, and average total cost?  Now suppose it costs you $18,000 to make a 51st car.  What is your marginal cost?

6.  Suppose you spent one million dollars to build your factory, and another million dollars for materials and labor and electricity to make 50 cars.  What is your fixed cost, average variable cost, and average total cost?  Now suppose it costs you $18,000 to make a 51st car.  What is your marginal cost?

7.  Suppose you own and drive a taxicab, and its annual license fee is $1000 per year.  Suppose you learn that the license fee will increase to $1200 next year. Does this increase either increase, decrease, or have no effect on (a) marginal cost, (b) average variable cost, and (c) average total cost? 

7.  Suppose you could earn $8 an hour.  Instead, you watch television for an hour.  What is your accounting profit or loss, and what is your economic profit or loss, for that hour?

 

8.  Suppose you could earn $8 an hour.  Instead, you watch television for an hour.  What is your accounting profit or loss, and what is your economic profit or loss, for that hour?

===Honors===

===Honors===