Microeconomics question

1. Amy owns a fish shop. She employs workers to sort and pack the fish. Workers can pack the following amounts of fish in an hour: (15 points) Number of students: 1 2 3 4 5 6 7 8 Quantity of fish (kilograms): 20 50 90 120 140 50 150 140 a. Use the data to calculate the MP of workers. b. If all fish shops in Amy's area pay their packers $5 an hour, how many workers will Amy employ? Assuming Amy sells her fish for $0.50 a kilogram. 2. The table below shows a car manufacturer's total cost of producing cars. (35 points) Q T TVC AVC AFC ATC MC 0 $500,000 1 540,000 2 560,000 3 570,000 4 590,000 620,000 6 660,000 7 720,000 8 800,000 9 920,000 10 1,100,000 a. What is this manufacturer's fixed cost? b. For each level of output, calculate the total variable cost [TVC]. For each level of output except zero output, calculate the average variable cost [AVC], the average total cost [ATC], and the average fixed cost [AFC]. What is the minimum average cost output? c. For each level of output, calculate this manufacturer's marginal cost [MC]. d. In one diagram, draw the manufacturer's AVC, ATC, and MC curves. 3. Kyle eats two types of fruits - bananas and apples. He has a budget of $50 to spend on fruits per month. The price of bananas is $5 and that of apples is $10. (20 points) a. Graph Kyle's budget line by plotting bananas on the horizontal axis, and find the slope of his budget line. b. Write down the budget equation for Kyle's consumption of fruits (bananas on the horizontal axis). c. Suppose the price of bananas has doubled. Present this effect graphically and find his new slope of the new budget line (bananas on the horizontal axis). d. Suppose Kyle now reduces the budget spent on fruits to $40. Present this effect graphically and find his new slope of the new budget line (bananas on the horizontal axis, and price of bananas is $5 and that of apples is $10). 4. Think about a purchase that you made recently. How would you describe your thinking before you made that purchase? (15 points) 5. Would you expect total utility to rise or fall with additional consumption of a good? Why? (15points)