Problem Set 1

I. Fill in the values for the Average Product and the Marginal Product

Fixed Input Variable Input Total Product Average Product Marginal Product
1 0 0
1 1 100
1 2 270
1 3 420
1 4 560
1 5 680
1 6 770
1 7 820
1 8 820
1 9 760
1 10 650

II. Fill in the missing values

Output Total Cost Total Total Marginal Average Average Average
Variable Fixed Cost Cost Cost Variable Fixed Cost
Cost Cost
0 50
2 7.00
4 71 3.50 17.75
6 4.50 5.00 8.33
8 90 11.25
10 50.5 10.05 5.00
12 111.5 61.5 5.50 5.13
14 124.5 74.5 6.50 8.89 5.32
16 140.5 90.5 8.78 5.66
18 162.5 112.5 9.03 6.25
20 202.5 152.5 20.00 7.63 2.50

III. Illustration:
1. Find the slope of the supply equation then illustrate its graph.

Supply Equation: Qs = P

2. Suppose the supply equation in #1 is the supply equation for umbrellas. What will happen to the supply
curve if the minimum wage will increase by 20%?