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I was googling some questions for Macro taught by Charles Registrar and I stumbled upon your post from last year. If you still have answers for the following questions, please let me know, I need them by 7 tonight. Also, how much will you be willing to send them for.


Answer each of the following. You are allowed to use lecture notes, books, the library, the web… You must NOT work together. Your exam is due in class next W, April 18 AND must be word processed (graphs can be hand-drawn).

1. Explain the relationship, if any, between a firm’s marginal product of labor curve and its marginal cost curve. (No diagram necessary).

2. Show graphically a typical firm’s short run cost curves (marginal, average

variable, average fixed, and average total), making sure that the relations between

them are accurate. Identify in the diagram and define the concept of eventually

diminishing returns.

3. If a competitive firm wishes to maximize profit (or minimize loss), what rule should it apply in choosing an output level? Show this graphically and explain.

4. Show graphically and explain a competitive firm that is making a short-run profit. Is this outcome possible in the long-run? Why/why not?

5. Show graphically and explain why a competitive firm might rationally choose to continue producing in the short-run even though it is losing money. Make-up a numerical example consistent with this diagram.

Kemahiran: Penyelidikan

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