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Economics Group Assignment Guidelines

The document outlines a group assignment for six students, consisting of questions related to income determination, equilibrium pricing, and marginal rates of substitution for ice cream products. It also includes a short-run cost function for a firm, requiring calculations for total fixed costs, average product, marginal product, average variable cost, and shutdown price. The assignment must be submitted by March 19, 2022, either as a hard copy or via email.

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8 views1 page

Economics Group Assignment Guidelines

The document outlines a group assignment for six students, consisting of questions related to income determination, equilibrium pricing, and marginal rates of substitution for ice cream products. It also includes a short-run cost function for a firm, requiring calculations for total fixed costs, average product, marginal product, average variable cost, and shutdown price. The assignment must be submitted by March 19, 2022, either as a hard copy or via email.

Uploaded by

Sdwa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Group Assignment (6 students per group)

Answer the following questions, by showing the necessary steps.


1. Refer to the information provided in the figure below to answer questions a to c. (5 Points)

a) Determine Jason's income when the price of an ice cream cone is $2.
b) If the price of an ice cream cone is $2, how much would be the price of ice cream sandwiches at
the equilibrium?
c) Determine the MRS Ice cream cone for Ice cream sandwiches at Point A.
1
2. Suppose a firm’s short run cost function is given as 𝑇𝐶 = 𝑄 3 − 2𝑄 2 + 60𝑄 + 1000. (10 points)
3

a) Find the TFC and AFC


b) Compute APL and MPL, assuming a wage rate of 5000 birr per unit of labor.
c) Derive the minimum values of AVC and MC
d) Determine the shutdown price, and interpret.

Submission: Hard copy during the lecture OR softcopy by email (beshir.ali01@[Link])


Deadlines: 19 March 2022

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