Zach

Microeconomics Course Assignment
In fulfillment of Course ePortfolio and CSIS requirement

This Assignment is required and totals 50 points
Part 1 Perfect Competition Analysis
Total
Output/
hr
0
1
2
3
4
5
6
7
8
9
10
11
(TFC)
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
(TVC)
$0
7
10
12
13
15
18
22
27
33
40
48
(TC)
(AFC)
(AVC)
(ATC)
(MC)
Market
Price
Perfect Total
Compet Revenu Total
ition
e
Profit
$5
(MR)
Part 2 Monopoly Profitability Analysis
Microeconomics Course Assignment

In fulfillment of Course ePortfolio and CSIS requirement
Part 2
Price
Total Per Unit
Output (Deman
Units
d)
0
$8.00
1
$7.80
2
$7.60
3
$7.40
4
$7.20
5
$7.00
(TR)
(TC)
10.00
14.00
17.50
20.75
23.80
26.70
(TP)
(ATC)
(MC)
(MR)
6
7
8
9
10
11
12
$6.80
$6.60
$6.40
$6.20
$6.00
$5.80
$5.60
29.50
32.25
35.10
38.30
42.70
48.70
57.70
Costs of Production and Profit Maximization Analysis

for the Perfect Competitive Market Structure
Total
Output/hr
Total
Fixed
Costs
(TFC)
0
1
2
3
4
5
6
7
8
9
10
11
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
$10
Total
Total Averag
Variabl
Cost e Fixed
e Cost
(TC)
Cost
(TVC)
(AFC)
$0
10
0
7
17
10
10
20
5
12
22
3
13
23
3
15
25
2
18
28
2
22
32
1
27
37
1
33
43
1
40
50
1
48
58
1
Market
Averag Averag
Margin
Price
e
e Total
al Cost Perfect
Variabl Cost
(MC) Competiti
e Cost (ATC)
on
(AVC)
0
-$5
7
17.00
7
$5
5
10.00
3
$5
4
7.33
2
$5
3
5.75
1
$5
3
5.00
2
$5
3
4.67
3
$5
3
4.57
4
$5
3
4.63
5
$5
4
4.78
6
$5
4
5.00
7
$5
4
5.27
8
$5
Average Costs of Production
Production Costs
18
16
14
12
Average Total C os
10
Average Fixed C
(AFC )
Average Variable
(AVC )
8
6
4
2
0
1
6Output
10
11
12
(AVC )
6
4
2
0
1
Output
10
11
12
5
10
15
20
25
30
35
40
45
50
55
-12
-10
-7
-3
0
2
3
3
2
0
-3
5
5
5
5
5
5
5
5
5
5
5
Revenue and Costs
Total
Margin
Total
Revenu
al
Profit
e (TR)
Revenu
e (MR)
-0
-10
Marginal Cost =
Marginal Revenues
Profit Maximizat
70
60
50
40
Maximum Profit at Profit

Maximizing Output
30
20
10
0
1
Output
6
7
10 11 12
Total Cost of Production
Dollar Costs of Production
$70
$60
$50
Average Total C ost (ATC )

Average Fixed C ost
(AFC )
Average Variable C ost
(AVC )
$40
Total Fixed C osts
Total Variable C o
(TVC )
Total C ost (TC )
$30
$20
12
8
$10
(AVC )
$40
Total Fixed C osts
Total Variable C o
(TVC )
Total C ost (TC )
$30
$20
12
$10
$0
1
6
7
Output
10
11
12
Profit Maximization
tput
7
Total C ost (TC )
10 11 12
Total Fixed C osts (TFC )

Total Variable C ost
(TVC )
Total C ost (TC )
Price and Cost per Unit
Measuring Total Profits
18
16
14
12
10
Marginal C ost (MC )
8
6
Marginal Revenue (MR)
4
2
10
Total Variable C ost

(TVC )
Total C ost (TC )
Total Fixed C osts (TFC )
14
12
10
Marginal C ost (MC )
8
6
Marginal Revenue (MR)
4
2
0
1
6Output
7
12
11
10
11
12
C ost (ATC )
(MC )
enue (MR)
12
C ost (ATC )
(MC )
enue (MR)
13
Sheet3
Monopoly Profit Maximizing Analysis
P ric e , M a rg in a l R e v e n u e a n d C o s ts
Total
Price
Outpu Per Unit
Total
t
(Deman Revenue
Units
d)
(TR)
0
$8.00
0.00
1
$7.80
7.80
2
$7.60
15.20
3
$7.40
22.20
4
$7.20
28.80
5
$7.00
35.00
6
$6.80
40.80
7
$6.60
46.20
8
$6.40
51.20
9
$6.20
55.80
10
$6.00
60.00
11
$5.80
63.80
12
$5.60
67.20
Total
Costs
(TC)
10.00
14.00
17.50
20.75
23.80
26.70
29.50
32.25
35.10
38.30
42.70
48.70
57.70
Average
Total
Marginal
Costs
Marginal Revenue
(ATC)
Cost (MC)
(MR)
Total
Profit
(TP)
-10.00
-6.20
-2.30
1.45
5.00
8.30
11.30
13.95
16.10
17.50
17.30
15.10
9.50
14.00
8.75
6.92
5.95
5.34
4.92
4.61
4.39
4.26
4.27
4.43
4.81
4.00
3.50
3.25
3.05
2.90
2.80
2.75
2.85
3.20
4.40
6.00
9.00
7.80
7.40
7.00
6.60
6.20
5.80
5.40
5.00
4.60
4.20
3.80
3.40
Demand P
Demand Price
Monopoly Profit Determination

16.00
14.00
12.00
MC
10.00
Price Per Unit

(Demand)
Average Total Costs
(ATC)
Marginal Cost (MC)
Monopoly Profit
8.00
6.00
4.00
MR
2.00
0.00
0
10 11 12 13
Tota l Cos ts /Tota l Re ve nue
Output
TRComparison
Revenue-Cost
80.00
70.00
TC
60.00
50.00
40.00
30.00
Total Revenue
(TR)
Page 14
Average Total Cos
Sheet3
MC = MR
Price
osts
Page 15
80.00
Sheet3
70.00
60.00
50.00
Total Revenue
(TR)
40.00
30.00
20.00
10.00
0.00
1 2 3 4 5 6 7 8 9 10111213
Output
Page 16
Sheet3
Page 17

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Microeconomics Course Assignment

In fulfillment of Course ePortfolio and CSIS requirement

Part 1 Perfect Competition Analysis

Part 2 Monopoly Profitability Analysis

Microeconomics Course Assignment

Costs of Production and Profit Maximization Analysis

Average Costs of Production

Revenue and Costs

Maximum Profit at Profit

Total Cost of Production

Dollar Costs of Production

Average Total C ost (ATC )

Total Fixed C osts

Total Fixed C osts

Total C ost (TC )

Total Fixed C osts (TFC )

Price and Cost per Unit

Measuring Total Profits

Average Total C ost (ATC )

Marginal C ost (MC )

Marginal Revenue (MR)

Total Variable C ost

Total Fixed C osts (TFC )

Average Total C ost (ATC )

Marginal C ost (MC )

Marginal Revenue (MR)

Monopoly Profit Determination

Price Per Unit

Tota l Cos ts /Tota l Re ve nue

Average Total Cos

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