Production and Costs Problem Set1

1. Suppose that the price of Apples is $2. In addition, suppose that the firm's total costs are $21
and that the firm currently sells 90 Apples.
Given this information, what is this firm's total revenue?

2. The table below shows data for the production of Avocados for an individual firm operating in
a perfectly competitive market.

Quantity of
Avocados Total Revenue Total Costs
0 0 30
10 40 50
20 80 62
30 120 71
40 160 80
50 200 89
60 240 100
70 280 130
80 320 200

Given this data, what is the per unit price of Avocados?

1
This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0
International License. You can access an alternative means to plotting points at
https://www.desmos.com/calculator.
Use the following information to answer questions 3 through 5:
The graph below shows data for an individual firm.

3. Curve 1 shows:
• variable costs
• total costs
• fixed costs

4. Curve 2 shows:
• variable costs
• total costs
• fixed costs

5. Curve 3 shows:
• variable costs
• total costs
• fixed costs
Use the following information to answer questions 6 through 9:
The table below shows data for Apples for an individual firm.

Quantity of Apples Fixed Costs (FC) Variable Costs (VC) Total Costs (TC)
0 ? ? 80
1 80 117 197
2 80 252 332
3 ? ? 485
4 80 ? 656
5 80 765 845
6 80 ? 1052
7 ? 1197 1277
8 80 1440 1520

6. Given this data, what are fixed costs when quantity is 0?

7. Given this data, what are variable costs when quantity is 0?

8. Given this data, what are variable costs when quantity is 3?

9. Given this data, what are variable costs when quantity is 4?

10. The table below shows data for Apples for an individual firm.

Quantity of Apples Fixed Costs Variable Costs

1 90 143
2 90 308
3 90 495
4 90 704
5 90 935
6 90 1188
7 90 1463
8 90 1760

Given this data, what are total costs when quantity is 6?

11. The graph below shows cost curves for a firm operating in a perfectly competitive market.

Curve 3 shows
a. Average Variable Costs (AVC)
b. Average Fixed Costs (AFC)
c. Average Total Costs (ATC)
d. Marginal Costs (MC)
12. The graph below shows cost curves for a firm operating in a perfectly competitive market.

Curve One shows

a. Average Variable Costs (AVC)
b. Average Fixed Costs (AFC)
c. Average Total Costs (ATC)
d. Marginal Costs (MC)
13. The graph below shows cost curves for a firm operating in a perfectly competitive market.

Curve Two shows

a. Average Variable Costs (AVC)
b. Average Fixed Costs (AFC)
c. Average Total Costs (ATC)
d. Marginal Costs (MC)