1. Chris owns his own business restoring antique cars. Last year, he restored 24 cars, which he sold for $1,100,000. The parts and supplies necessary for the restoration totaled $400,000. He paid $360,000 to his six employees and a salary of $110,000 to himself. The rent and utilities on his building were $80,000.

Recently, Chris received an offer to work as Jay Leno's personal auto restorer, at a salary of $275,000. Chris also received a $180,000 offer to host a car-related reality TV show for the Discovery Channel. Chris can only work one job.

Chris's accounting cost is: __________

His accounting profit is: _____________

Chris's economic cost is ___________

Economic Profit is __________________

HOW WAS THIS FOUND PLEASE SHOW THE WORK

Compare what Chris earns in his current job (both his salary and his company's accounting profit) to his best outside offer. Should he work for Leno or keep working for himself?

He should work for Leno because he would earn more $

OR

He should keep working at his own business because he earns more there.

2.

A firm's total cost curve is TV = Q³ - 60Q² + 910Q +150. Its marginal cost is MC = 3Q² - 120Q + 910.

The firms fixed cost is: ____________

0, 150, 910, 120

The firm's variable cost is: ___________ ATC = 910

ATC = 150

ATC = Q² - 60Q + 910 + 150/Q

ATC = Q²- 60Q + 910

The firm'saverage variable cost: ________

AVC = 910

AVC = Q² - 60Q + 910 + 150/Q

AVC = Q²- 60Q + 910

AVC = Q²- 60Q + 150/Q

Find the output level at which average variable cost is minimized.

The output level at which average variable cost is minimized is ____________

150

75

60

30

PLEASE SHOW ME HOW YOU CALCULATED THIS

3.

Suppose that the demand for fertilizer is given by Q = 40 - 0.5P, where Q is in tons of fertilizer per month and P is the price per ton. DFC is a monopoly that produces fertilizer for northern NV at a constant marginal and average total of cost of $10 per ton.

Derive the inverse demand curve faced by DFC

P = 40 - 0.5Q

P = 80 - 0.5Q

P = 80 - 2Q

P = 40 - 2Q

Derive the marginal revenue curves faced by DFC

MR = 40 - 0.5Q

MR = 80 - Q

MR = 80 - 4Q

MR = 80 - 2Q

Determine the profit maximizing level of output.

The profit maximizing level of output is

45

17.5

25

12.5

Find the profit-maximizing price by plugging the ideal quantity back into the demand curve.

The profit-maximizing price is

25

45

17.5

19.99

PLEASE SHOW ME HOW YOU CALCULATED THIS