# Project #51265 - Economics

Problem-solving question:  Use the following data on a firm’s total cost schedules to calculate its average variable cost, average fixed cost, average total cost, and marginal cost schedules.

Output      Total Cost     Total Variable Cost    Total Fixed Cost

1         \$2075.00           \$ 75.00                \$2000.00

2          2140.00            140.00                 2000.00

3          2180.00            180.00                 2000.00

4          2280.00            280.00                 2000.00

5          2400.00            400.00                 2000.00

Problem-solving exercises: (a) Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity, price) points of (100, \$20) and (300, \$10). (b) Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 5% increase in the price of its close substitute, product Y, causes the quantity demand of product X to increase by 10%.  c) Calculate the income-elasticity of demand coefficient for a product for which a 4% increase in consumers' income will increase the quantity demanded by 6%.

 Subject Mathematics Due By (Pacific Time) 12/12/2014 09:00 am
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