1.- A company in a competitive market receives $ 500 as total income and you have an income marginal $ 10.

What is the average income and how many units do you sell?

2.- A profit maximizing company in a competitive market currently produces 100 product units. Have an average income

of $ 10, average total cost of $ 8 and costs fixed at $ 200.

a). What are the benefits?

b). What is the marginal cost?

c). What is the average variable cost?

d). Is the efficient scale of the company more, less or exactly 100 units?

3.-The fertilizer market is perfectly competitive. Companies operating in the market produce, but have economic losses.

a.How does the price of fertilizer compare with the average total cost, the variable cost average and the marginal cost of producing fertilizer?

b. Draw two graphs, side by side, that illustrate the current situation for the typical company and the market.

c. Assuming there are no changes in the demand or in the cost curves of the companies, explain what will happen in the long run

term with the fertilizer price, the cost marginal, average total cost, quantity offered by each company and the total amount

offered in the market.

4.-Bob's gardening service is a company competitive profit maximizer. Bob pruned gardens for $ 27. Your total cost per day is

$ 280, of which $ 30 is fixed cost. Pruning 10 gardens per day.

What can you say about the Bob short-term decision about temporarily closing and his long-term decision to go out

From the market?