ECON 545(DEVRY) help A Clearer path to student success/uophelp.com ECON 545(DEVRY) help A Clearer path to student suc | Page 13

11.
Consider the polar case where the price elasticity of demand
is perfectly inelastic
Use the line drawing tool to draw a perfectly inelastic curve.
12.
Consider the two demand curves illustrated in the figure to
the right
Which of the two is relatively more elastic?
13.
Suppose that Bill owns an automobile collision repair shop
and the table below shows the quantity of cars repaired per month
according to how many workers Bill hires. Assume he pays each
worker $6,000 per month and his fixed cost equals $5,000 per
month
14.
Suppose a pizza parlor has the following production costs:
$5.00 in a labor per pizza, $4.00 in ingredients per pizza, $0.80 in
electricity per pizza, $1,000 in restaurant rent per month, and
$5550 in insurance per month
Assume the pizza parlor produces 6,000 pizzas per month
What is the variable cost of production is ….?
What is fixed cost of production
The fixed cost of production is $...
15.
The table below shows the quantity of workers and total
output for a local pizza parlor. Answer the following questions
based on this table
a. When the owner hires 4 workers, the average product of labor
is ….. pizzas