|
1. Fill in the blank. (Use decimals, not
fractions, and do not include dollar
signs.)
|
Amount of
Capital
|
Total Cost
|
Output
|
Total
Revenue
|
|
20
|
$50,000
|
89
|
$55,000
|
|
22
|
$50,100
|
90
|
$55,300
|
|
|
a) Increasing capital by 1 increases costs
by $
|
|
|
b) Increasing capital by 1 increases
output by
|
|
|
c) Increasing output by 1 increases
revenue by $
|
|
|
d) Increasing output by 1 increases cost
by $
|
|
|
e) Increasing capital by 1 increases
revenue by $
|
|
|
2. Answer the same questions using
the following table and the technical terms
of economics:
|
Amount of
Capital
|
Total Cost
|
Output
|
Total
Revenue
|
|
109
|
$120,000
|
500
|
$130,000
|
|
111
|
123,000
|
505
|
134,000
|
|
|
f) Marginal resource cost of capital =
$
|
|
|
g) Marginal product of capital =
|
|
|
h) Marginal revenue =
$
|
|
|
i) Marginal cost =
$
|
|
|
j) Marginal revenue product =
$
|
|
|
3. Fill in the blanks:
a) Marginal resource cost of capital =
$10
b) Marginal product of capital = 2
c) Marginal revenue = $6
d) Marginal cost = $5
|
|
|
e) Marginal revenue product =
$
|
|
|
|
