BA 206 Brenau University Week 3 Microeconomics Explicit and Implicit Costs HW Be sure to answer every question. Some questions or problems will require mor

BA 206 Brenau University Week 3 Microeconomics Explicit and Implicit Costs HW Be sure to answer every question. Some questions or problems will require more in-depth responses than others, based on what the prompt calls for and the instructions provided on the worksheet. Be sure to address each of the questions with sufficient detail. Relevant detailed responses are highly rewarded. Where appropriate, consult your textbook and properly cite the textbook in your responses using in-text citations and a reference at the end of each response. If you consult any additional sources, then you should provide both in-text citations and references at the end for each source. Week 3 Homework Assignment
BA 206: Microeconomics
Name_________________________________________________________________
Instructions: Please answer each question with sufficient detail. Relevant detailed
responses are highly rewarded. If you consult any sources, then you should provide
both in-text citations and reference at the end for each response. You need to make
sure at least consult your textbook for your responses, and cite the textbook using APA
format.
1. Distinguish between explicit and implicit costs, giving examples of each. What
are some explicit and implicit costs of attending college? (20% of grade)
2. Complete the table directly below by calculating marginal product and average
product. (20% of grade)
Inputs of labor
0
1
2
3
4
5
6
7
8
Total Product Marginal Product
0 NA
15
34
51
65
74
80
83
82
Average Product
NA
3. A firm has fixed costs of $60 and variable costs as indicated in the table at the
bottom of this page. Complete the table below (AFC, AVC, ATC, MC). (20% of
grade)
Total
Total
Produ Fixed
ct
Cost
0
1
2
3
4
5
6
7
8
9
10
Total
Variable Total
Cost
Cost
$0
45
85
120
150
185
225
270
325
390
465
Average
Fixed
Cost
(AFC)
Average
Variable
Cost
(AVC)
Average
Total
Cost
(ATC)
Margin
al Cost
(MC)
4. “Even if a firm is losing money, it may be better to stay in business in the short
run.” Is this statement ever true? Under what condition(s)? Discuss with enough
detail. Provide an example if necessary. (20% of grade)
5. Consider a profit-maximizing firm in a competitive industry. For each of the
following situations, indicate whether the firm should shut down production or
produce where MR = MC. Please note that this is not a multiple-choice question.
(20% of grade)
A. P minimum ATC.
C. Minimum AVC