.Solve the following this question is complete.

(1 point) The average cost per item to produce q items is given by a(q) = 0.02972 1.2g + 28, for q > 0. What is the total cost, C(q), of producing q goods? C(q) = What is the minimum marginal cost? minimum MC = (Be sure you can say what the practical interpretation of this result is!) At what production level is the average cost a minimum? q = What is the lowest average cost? minimum average cost = Compute the marginal cost at q = 30. M C(30) = How does this relate to your previous answer? Explain this relationship both analytically and in words. Problems (Solusand to problemis mariged * appear at the bock of this book. Problems adapted to one calculus in availabit saint at 1. Which assumption about consumer preferences does by three different consumers (Augn, Barbara, and each of the following individuals violate? Camina), holding everything else constant: . Adam likes basketball more than football; Auon Football more than baseball; and baseball more Barbara Camira than basketball. b. Christina prefers prune juice to orange juice but 02 cannot decide how she feels about grapefruit juice. C. Blake likes superhero comic books but prefers 5 comic books to 10 comic books. 54 2. By assumption, individual preferences must be tran- sitive so that if A is preferred to B, and B is preferred to C. then A is preferred to C. Suppose that Marsha, 17 5 Jan, and Cindy individually have transitive prefer- ences over three goods: oranges, apples, and pears. Compute the marginal utility of X for each of the If Marsha, Jan, and Cindy were to vote on whether three consumers at each level of X. to name oranges, apples, or pears the "fruit of the b. Based on the data in the table, can you tell month," show that it is possible the preferences for whether any of these consumers are violating any the group might not be transitive. of the standard assumptions about preferences? 3. Draw two indifference curves for each of the follow- c. Is it possible that any of these three consumers ing pairs of goods. Put the quantity of the first good have the same preferences, and that columns for the on the horizontal axis and the quantity of the second three consumers differ only because of the arbitrary good on the vertical axis. units that are used to measure utility? Explain Paul likes pencils and pens, but does not care $6. A consumer's utility function is given by U- XY. which he writes with where MU, - F and MU, = X. Rhonda likes carrots and dislikes broccoli. a. What is the utility derived from 1 unit of X and C. Emily likes hip-hop iTunes downloads and 2 units of Y? What is the utility derived from doesn't care about heavy metal downloads. 2 units of X and I unit of F? What is the utility d. Michael only likes dress shirts and cufflinks in 1 derived from 5 units of X and 2 units of Y? to 2 proportions. b. How does the consumer rank the following e. Carlene likes pizza and shoes. bundles? *4. Suppose that John is indifferent between consuming Bundle Quantity of I Quantity of F bundle A. which consists of 4 apples and 1 peach, and bundle B, which consists of 4 peaches and A 2 1 apple. If John were given the choice between bun- 10 dle A and bundle C, which contained 3 peaches and 2 apples, which should be pick? (Hint: Draw an 5 indifference curve or two.) 3 2 5. The following table displays the total utility ((X ) that 2 3 comesponds to the number of units of X consumed16. Suppose that there are only two goods, books and coffee. Justine gets utility from both books and cof- fee, but her indifference curves between them are concave rather than convex to the origin. a. Draw a set of indifference curves for Justine. b. What do these particular indifference curves tell you about Justine's marginal rate of substitution between books and coffee? c. What will Justine's utility-maximizing bundle b. look like? (Hint: Assume some level of income for Justine and some prices for books and coffee, then draw a budget constraint.) C. d. Compare your answer to (b) to real-world behaviors. Does the comparison shed any light d. on why economists generally assume convex preferences? * 17. Chrissy spends her income on fishing lures (L) and gui- tar picks (G). Lures are priced at $2, while a package e. of guitar picks costs $1. Assume that Chrissy has $30 to spend and her utility function can be represented as 20. Che U(L,G) = 105Go5. For this utility function, MUZ = sub 0.51 05Gos and MUG = 0.5105G-05 whacalculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (LO5.3) 6. Joshua borrowed $500 for one year and paid $50 in interest. The bank charged him a $5 service charge. What is the finance charge on this loan? (LOS.4) 7. In problem 5, Joshua borrowed $500 on January 1, 2017, and paid it all back at once on December 31, 2017. What was the APR? (LO5.4) 8. If Joshua paid the $500 in 12 equal monthly payments in problem 5. what is the APR? (LO5.4) 9. Sidney took a $200 cash advance by using checks linked to her credit card account. The bank charges a 2 percent cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived. What was the cash advance fee? What was the interest for one month at an 18 percent APR? What was the total amount she paid? What if she had made the purchase with her credit card and paid off her bill in full promptly? (L05.4) 10. Brooke lacks cash to pay for a $600 washing machine. She could buy it from the store on credit by making 12 monthly payments of $52.74 each. The total cost would then be $632.88. Instead, Brooke decides to deposit $50 a month in the bank until she has saved enough money to pay cash for the washing machine. One year later, she has saved $642-$600 in deposits plus interest. When she goes back to the store, she finds that the washing machine now costs $660. Its price has gone up 10 percent-the current rate of inflation. Was postponing her purchase a good trade-off for Brooke? (L05.4) 11. What are the interest cost and the total amount due on a six-month loan of $1,500 at 13.2 percent simple annual interest? (L05.4) 12. After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,000 price, but financing through the dealer is no bargain. He has $2,000 cash for a down payment, so he needs an $8,ooo loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,ooo for a period of four years at an add-on interest rate of 11 percent. (LOS.4) a. What is the total interest on Richard's loan? b. What is the total cost of the car? TE E Focus + 100% Book Pro DN DD