INDIVIDUAL ASSIGNMENT 1 MICROECONOMICS USING MS EXCEL
(Total Marks 5)
Date of Submission on Blackboard: 30 April 2023
Use the following table to work Problems 1 to 5.
The table sets out Sue’s Surfboards’ total product schedule.
Table 1: Surfboard Production
| Labor
(workers per week) |
Total Product (surfboards per week) |
Marginal Product | Average product |
| 0 | 0 | – | – |
| 1 | 30 | ||
| 2 | 70 | ||
| 3 | 120 | ||
| 4 | 160 | ||
| 5 | 190 | ||
| 6 | 210 | ||
| 7 | 220 |
QUESTIONS (3 MARKS)
- Draw the total product curve.
- Calculate the average product of labor and draw the average product curve.
- Calculate the marginal product of labor and draw the marginal product curve
- Over what output range does the firm experience diminishing marginal product of labor?
- Over what output range does the firm experience an increasing average product of labor but a diminishing marginal product of labor?
WORKSHEET 2 (2 MARKS)
Question 2) Surfboard Production Costs
| Labor
(workers per week) |
Total Product (surfboards per week) |
TFC (SAR per surfboard) |
TVC | TOTAL COST | AFC
|
AVC
|
ATC
|
MC |
| 0 | 0 | 3000 | 0 | – | – | – | – | – |
| 1 | 30 | 3000 | 3000 | |||||
| 2 | 70 | 3000 | 3500 | |||||
| 3 | 120 | 3000 | 4000 | |||||
| 4 | 160 | 3000 | 4500 | |||||
| 5 | 190 | 3000 | 5000 | |||||
| 6 | 210 | 3000 | 5500 | |||||
| 7 | 220 | 3000 | 6000 |
- Fill in the missing numbers from Table above for Total Fixed Costs (TFC), Total Costs (TC), Marginal Costs (MC), Average Variable Costs (AVC), Average Fixes Costs (AFC) and Average Total Costs (ATC)
