Principles of Microeconomics

Revised Medium Stakes Assignment

Part One:Making Sense of the Graph

The equations are

Let's assume we have 100 people who can live in either Alpha or Omega.

Two equations that represent what we talked about in Part One

The per person return when there are between 0 and 40 people living in a city is equal to 20 times x, where x is the number of people living in the city.

But when there are more than 40 people living in a city then the return per person is equal to 1,200 - .5(20 times x) where x is the number of people living in the city.