ECO 550 Assignment 3

Managerial Economics and Globalization

ECO 550: Managerial Economics and Globalization

Assignment 3

Instructor: Dr. A. A. Boakye Due By: 08/08/2011

Candidate's Name-Andre Stevenson

INSTRUCTIONS: Answer ALL the questions in PART I and PART II

Part 1 (40 points)

1. The WXY Corporation has fixed costs of 50. Its total variable costs (TVC) vary with output as shown in the following table.

Refer to the table. The average total cost of 4 units of output is

A.

B.

C.

D.

1. to scale as it increases its output over any reasonable range. If it increases all its inputs by 10%, its Suppose a particular firm exhibits constant returns

A. total cost will increase by less than 10%

B. average total cost will increase by 10%

C. output will increase by 10%...