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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