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Microeconomics

Anna Blajer-Gołębiewska M. Sc.

COSTS AND COSTS MINIMIZATION

Exercise I.

Divide costs into fixed and variable.

•    cost of energy,

•    cost of lease,

•    raw materials cost,

•    direct materiał costs,

•    indirect materiał cost,

•    property rental expense,

•    property tax,

•    depreciation cost,

vehicles fuel cost,

advertising cost,

insurance costs,

outsourcing,

cost of debts,

direct production wages,

clerical and accounting Staff salaries

administrative employees’ salaries.

Exercise 2.

Fili in the table._

TC = Ce + Ci = FC + VC

ATC=TC/X AVC=VC/X    AFC=FC/X    FC=TFC VC=TVC

TC = FC + VC    /X

ATC = AFC + AVC

Quantity = = TP = X	TC	VC	FC	ATC	AVC	AFC	MC
0		0
1		10
2		18
3		33	12
4		48

Exercise 3.

Fili in the table.

X	TC	VC	FC	ATC	AVC	AFC	MC
0			24
1							8
2				17
->		15
4	44

Exercise 4.

The cost of one unit of the only yariable resource is 200 jp. Fili in the table.

Q	TC	VC	MC	ATC	AVC	AFC
0	100
3
5
9
10

Exercise 5.

Total costs curve is given as a function of production: TC=l/3x³-2x²+5x+10. Find functions of:

a)	yariable costs	VC=
b)	fixed costs	FC=
c)	average total costs	ATC=
d)	average yariable costs	AVC=
e)	average fixed costs	AFC=
1)	marginal costs	MC=

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