AY 29% 10:06 PM Assignment - Individual.pdf E Caleylate the equilibrium price and quantity and illustrate your answer on a diagram 64% ies sales by stores. How would this affect the supply ii. Solve for the new quantity p ili. Show with diner 8. If codmer on function of w = Birr 2 sol labor and capital that maximize the level of output for a total outlay of Birr 240. Calculate 2. and interpret it 9. A firm has fixed costs of $60 and variable costs as indicated in the table below. a. Complete the table below b. Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves. c. Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each of these four curves and their relationships to one another. Specifically, explain in non- technical terms why the MC curve intersects both the AVC and the ATC curves at their minimum points. Total Total Total Total Average Average Average Marginal Product Fixed cost variable cost Cost fixed cost variable cost total cost cost $0 45 65 120 150 185 225 279 925 CGE 466 10. Isog ants can be to linear, or L-shaped. What does each of these shapes tell you about the nature of es tell you abou MRTS? 1 1. Given the Cobb De There the are K=16 and 1.=16 a. Calculate the average product of labour b. Calculate the marginal c. Cal marginal product of capital d. Cala ate the marginal rate of technical substitution, MRTS,.K e. Assurning the price of employing the inputs is 5 birr each, calcul the values of the marginal prod f. With graphical ustration, explain why Stage two is the rational stage of production Stage one is the irratio stage of production. Stage three is the irrational stage of production. State the economic law that ex ins stage two 12. Describe the 1 wing a. What is Margin ost? State as significance in cost analysis. b. Define opportunity cost and give an example. c. Explain the concepts: AFC, AVC. ATC and MC. Explain briefly the various types of costs with suitable examples