Banner Ad 1

Collapse

Announcement

Collapse
No announcement yet.

Microeconomics question

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Microeconomics question

    Doing some last minute touching up on my microeconomics stuff for an exam for school -- is there any equation that relates the ratio of marginal product and average product to the ratio of marginal cost and average variable cost?

  • #2
    To be more specific - one of the practice problems has as givens Marginal Product = 4, Average Product = 2, and Average Variable Cost = 10. Some of the questions attributed to it are: Is MC/AVC=2? In the short run, is the wage rate = 10?

    Comment


    • #3
      Is wage rate facoted into cost or is it a separate variable?
      Whether you are the lion or the gazelle, when the sun comes up, you better be running.

      Comment


      • #4
        I thought about this last night, and I think those two choices were trick questions (I usually find if a question throws me off, it's wrong - it's helped me so far). Marginal Cost can't be double Average Variable Cost unless it's well along the curve (which isn't true if Marginal Product is double Average Product - those are both early on the curves). Second - wage rate = Average Variable Cost can't be true, as the Factor Cost of Labor is but a piece of the puzzle (costs of doing business, such as supplies, etc., that wouldn't otherwise be used).

        Comment


        • #5
          I recommend drawing out your curves, seeing where you are, and then start playing with your numbers.
          Whether you are the lion or the gazelle, when the sun comes up, you better be running.

          Comment


          • #6
            Got those problems both correct, and for the second exam in a row got the best score in the class (43/50 before the 15 question curve (so 100%)). An idea of his exams: 150 true or false - sounds simple enough, except they are split into 50 questions (choices A, B, C, A and B, A and C, B and C, all the above, none of the above) - get all three right or miss the point. Takes the mean if you randomly guess each answer from 75/150=50% to (50/8)/50=12.5%. Really interesting way to greatly increase the difficulty of the exam.

            Comment

            Working...
            X