Economics Homework Solutions
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5 problems for microeconomics - attached - one problem per page

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5 problems for microeconomics.doc
PROBLEM ONE:

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PROBLEM TWO:

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PROBLEM THREE:

PROBLEM FOUR:

A pair of shoes that wholesales for $28.79 have the following costs:

Manufacturing Labor 2.25

Materials 4.95

Factory overhead, operating expense 8.5

Sales costs 4.5

Advertising 2.93

Research & Development 2

Interest 0.33

Net Income 3.33

                        

A. Which are variable, and which are fixed?

B. If output were to rise, what would happen to average total costs,
and why?

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PROBLEM FIVE (EXTRA CREDIT 15 POINTS):

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PAGE
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