1) Fill in the missing values in the following table? a. Complete the following table? b-Complete the following table

Learning Goal: I’m working on a micro economics writing question and need the explanation and answer to help me learn.

Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University

المملكة العربية السعودية وزارة التعليم الجامعة السعودية الإلكترونية

College of Administrative and Financial Sciences

Assignment 2

Microeconomics (ECON 101)

Deadline for students: 11/02/2023

Course Name: Microeconomics	Student’s Name:
Course Code: ECON101	Student’s ID Number:
Semester: 2nd	CRN:
Academic Year:2022-23-2nd

For Instructor’s Use only

Instructor’s Name:
Students’ Grade:00 / 15	Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY

• will NOT be accepted.

Assignment Questions

Q1

Mohamed produces Toys in the perfectly competitive Toys market.

• Fill in the missing values in the following table: (5 marks)
• Suppose the equilibrium price in the Toys market is $30. How many Toys should Mohamed produce? How much profit will he make? (1 mark)
• If next week the equilibrium price of Toys drops to $15, should Mohamed shut down? Explain. (1 mark)

Output per week	Total Cost	FC	VC	AFC	AVC	ATC	MC
0	$100
1	150
2	175
3	190
4	210
5	240
6	280
7	330
8	390
9	460
10	540

Answer:

Q2

A publisher initially prices both hardback books and paperback books at $20 per book. The hardback version comes out first, followed two months later by the paperback version. The publisher initially sells the same number of hardbacks and paperbacks (100 each). Each book costs $2 to produce.

a.Complete the following table. (2 marks)

–

	Price	Quantity	Total Revenue	Total Cost	Profit
Hardback	$20	100
Paperback	$20	100
Total		200

b. The price elasticity of demand for hardback (eager) buyers is 0.50, and the price elasticity of demand for paperback (patient) buyers is 2.00.Suppose the publisher increases the price for hardbacks by 10 percent and decreases the price of paperbacks by 10 percent. Complete the following table. (2 marks)

	Price	Quantity	Total Revenue	Total Cost	Profit
Hardback	$22
Paperback	18
Total

c. Does price discrimination increase or decrease the publisher’s profit? (1 mark)

Answer:

Q3(3 marks)

Suppose a firm producing baseball, it is operating in the short run. The price of baseball is $5, the hourly wage is $12, and each baseball requires $1 worth of material. The firm has experimented with different workforces and the results are shown in the first two columns of the following table.

1. Fill in the blanks in the table.

2. Is it sensible to continue to operate at a loss with 14 workers?

3. Would it be better to operate with 15 workers? Explain, using the marginal principle.

Workers	Baseball	Labor Cost	Material Cost	Variable Cost	Total Revenue	Marginal Cost
14	56
15	60

Answer: