1. A person chooses a combination of two goods: steaks and ribs. The amount of utility that their consumption will yield is shown in the table below. The price of a steak is $10 and ribs are $8. The person has a budget of $64. Utility of Steak and Ribs STEAK (Price = $10) RIBS (Price = $8) Marginal Marginal Utility Marginal Utility per Quantity Total Utility Total Utility Marginal Utility Utility per $ $ 1 42 32 2 82 60 3 118 84 4 148 100 5 170 110 A. Calculate the MU and MU per dollar for steak and ribs B. What combination of steak and ribs will maximize this person's utility? 2. Jane is thinking about leaving her job as a nurse to open a clothing store. The estimated revenue for a year is $150,000. Her costs are $70,000 in rent, insurance, utilities, equipment, and inventory. She would also be forgoing her wages of $90,000 to run her business full-time. A. What is her accounting profit? B. What are her opportunity costs? C. What is her economic profit? D. Should she leave her job and open this clothing store? Explain.Total Product, Marginal Product, and Average Product # of workers Total Product Marginal Product Average Product 16 33 52 4 68 - Calculate the marginal product of labor and average product of labor. 4. Consider a perfectly competitive rm. Calculate the missing values and answer the questions below: Revenue and Cost Quantity (Q) Total Revenue Marginal Revenue Total Cost (TC) Marginal Cost Average Cost Prot (TR) (MR) (MC) (AC) 0 $0 --- $3 --- --- 1 6 5 2 12 8 3 18 12 4 24 17 5 30 23 6 36 30 7 42 38 8 48 47 A. What is the xed cost of this rm? B. What is the prot-maximizing level of output and price of the good? 5. SAC SAVC SMC P2 B P1 0 Q1 Q2 Output A. If the price of the good falls between P2 and P1, what should the firm do in the short run? B. What should the firm do in the long run