4) Firm XYZ is currently producing 50 units of output at an average cost of $18. Customer A is willing to offer Firm XYZ $220 to produce 5 more additional units. Firm XYZ's average variable cost and average fixed cost of producing 55 units is $20 and $2. Should Firm XYZ accept the offer? 5) You are given the following cost and revenue information for Cindy's Candles, a perfectly competitive firm at its current level of output. AFC =4 ATC = 10 TVC = 600 MC = 10 TR = 1,200 a) What is the amount of profit or loss? b) Is the firm producing at its optimal level? If not, should it increase or decrease output?4) Firm XYZ is currently producing 50 units of output at an average cost of $18. Customer A is willing to offer Firm XYZ $220 to produce 5 more additional units. Firm XYZ's average variable cost and average fixed cost of producing 55 units is $20 and $2. Should Firm XYZ accept the offer? 5) You are given the following cost and revenue information for Cindy's Candles, a perfectly competitive firm at its current level of output. AFC =4 ATC = 10 TVC = 600 MC = 10 TR = 1,200 a) What is the amount of profit or loss? b) Is the firm producing at its optimal level? If not, should it increase or decrease output?c) At the end of the day, Melissa digs deep in her pocket and discovers an extra $4. If she allocates this additional spending between the two activities so as to maximize her total utility, what will be the final totals? d) Suppose that Melissa's utility from the two activities remains unchanged the next day, when she arrives with $20 in her pocket. To her pleasure, she discovers that the hourly charge on court fees has decrease to $3. How will she allocate her expenditures in order to maximize her total utility?c) At the end of the day, Melissa digs deep in her pocket and discovers an extra $4. If she allocates this additional spending between the two activities so as to maximize her total utility, what will be the final totals? d) Suppose that Melissa's utility from the two activities remains unchanged the next day, when she arrives with $20 in her pocket. To her pleasure, she discovers that the hourly charge on court fees has decrease to $3. How will she allocate her expenditures in order to maximize her total utility?3) The data in Table 6.1 are for Sam's Strawberries. The quantities are for number of tones of strawberries per month. Q TC $3000 3200 N - 3300 3 3500 4 3800 5 4300 a) What is the amount of TFC? b) What is the MC of the third ton produced? c) What is the TVC of producing 4 tons? d) What is the ATC of producing 2 tons?3) The data in Table 6.1 are for Sam's Strawberries. The quantities are for number of tones of strawberries per month. Q TC $3000 3200 N - 3300 3 3500 4 3800 5 4300 a) What is the amount of TFC? b) What is the MC of the third ton produced? c) What is the TVC of producing 4 tons? d) What is the ATC of producing 2 tons?2) Suppose that Melissa spends recreation time and money on two leisure activities: Tennis and fishing. The cost per hour of tennis (court fees) and per hour of fishing (boat rentals) is $4. The table below shows the total utility that Melissa derives from the two activities. Tennis Fishing Number of Total Utility Marginal Utility Number of Total Utility Marginal Utility Hours Hours 20 31 2 39 2 58 W 57 79 4 74 4 94 89 101 6 102 6 102 a) Complete the columns of marginal utilities. b) Assume that Melissa has a budget of $20. To maximize her total utility, how much would she allocate her spending between the two activities? What is the resulting total utility?2) Suppose that Melissa spends recreation time and money on two leisure activities: Tennis and fishing. The cost per hour of tennis (court fees) and per hour of fishing (boat rentals) is $4. The table below shows the total utility that Melissa derives from the two activities. Tennis Fishing Number of Total Utility Marginal Utility Number of Total Utility Marginal Utility Hours Hours 20 31 2 39 2 58 W 57 79 4 74 4 94 89 101 6 102 6 102 a) Complete the columns of marginal utilities. b) Assume that Melissa has a budget of $20. To maximize her total utility, how much would she allocate her spending between the two activities? What is the resulting total utility?Assignment #2 Questions 1) Assume the utility Janet obtains from consuming apples is given in the table below. Number of apples Total utility Marginal Utility 7 7 N 13 W 18 U 22 4 25 27 - N W 28 28 O 27 10 25 -2 (a) At what point does diminishing marginal utility set in? (b) If apples were freely given away at zero cost, how many apples would she choose to consume? (c) If Janet is at her level of maximum utility from apple consumption, what will happen to her level of utility if she consumes an additional apple?Assignment #2 Questions 1) Assume the utility Janet obtains from consuming apples is given in the table below. Number of apples Total utility Marginal Utility 7 7 N 13 W 18 U 22 4 25 27 - N W 28 28 O 27 10 25 -2 (a) At what point does diminishing marginal utility set in? (b) If apples were freely given away at zero cost, how many apples would she choose to consume? (c) If Janet is at her level of maximum utility from apple consumption, what will happen to her level of utility if she consumes an additional apple