The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of$1 per burger, paid by producers of hamburgers. a. Which of the following curves—average fixed cost, average variable cost, average total cost, and marginal cost—would shift as a result of the lump-sum tax? Why? Show this in a graph. Label the graph as precisely as possible. b. Which of these same four curves would shift as a result of the per-burger tax? Why? Show this in a new graph. Label the graph as precisely as possible.

Consider the following cost information for a pizzeria:

$$\begin{array}{lcc} \text{Quantity} & \text{Total Cost} & \text{Variable Cost} \\ \hline 0 \text{ dozen pizzas } & \$ 300 & \$ 10 \\ 1 & 350 & 50 \\ 2 & 390 & 90 \\ 3 & 420 & 120 \\ 4 & 450 & 150 \\ 5 & 490 & 190 \\ 6 & 540 & 240 \end{array}$$

a. What is the pizzeria's fixed cost?

b. Construct a table in which you calculate the marginal cost per dozen pizzas using the information on total cost. Also, calculate the marginal cost per dozen pizzas using the information on variable cost. What is the relationship between these sets of numbers? Comment.

The city government is considering two tax proposals:

A lump-sum tax of $300 on each producer of hamburgers.

A tax of$1 per burger, paid by producers of hamburgers.

Which of these same four curves would shift as a result of the per-burger tax? Why? Show this in a new graph. Label the graph as precisely as possible.

A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught:

$$\begin{aligned} &\begin{array}{lc} &\text { Quantity of Fish }\\ \text { Hours } & \text { (in pounds) } \\ \hline 0 \text { hours } & 0 \mathrm{lb} . \\ 1 & 10 \\ 2 & 18 \\ 3 & 24 \\ 4 & 28 \\ 5 & 30 \end{array} \end{aligned}$$

The fisherman has a fixed cost of $\$ 10$ (his pole). The opportunity cost of his time is $\$ 5$ per hour. Graph the fisherman's total-cost curve. Explain its shape.

Consider the following cost information for a pizzeria:

$$\begin{array}{lcc} \text { Quantity } & \text { Total Cost } & \text { Variable Cost } \\ \hline 0 \text { dozen pizzas } & \$ 300 & \$ 0 \\ 1 & 350 & 50 \\ 2 & 390 & 90 \\ 3 & 420 & 120 \\ 4 & 450 & 150 \\ 5 & 490 & 190 \\ 6 & 540 & 240 \end{array}$$

Construct a table in which you calculate the marginal cost per dozen pizzas using the information on total cost. Also, calculate the marginal cost per dozen pizzas using the information on variable cost. What is the relationship between these sets of numbers? Explain.

A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught:

$$\begin{aligned} &\begin{array}{lc} &\text { Quantity of Fish }\\ \text { Hours } & \text { (in pounds) } \\ \hline 0 \text { hours } & 0 \mathrm{lb} . \\ 1 & 10 \\ 2 & 18 \\ 3 & 24 \\ 4 & 28 \\ 5 & 30 \end{array} \end{aligned}$$

What is the marginal product of each hour spent fishing?

An industry currently has $100$ firms, all of which have fixed costs of $\$ 16$ and average variable cost as follows:

$$\begin{array}{cc} \text{ Quantity } & \text{ Average Variable Cost } \\ \hline 1 & \$ 1 \\ 2 & 2 \\ 3 & 3 \\ 4 & 4 \\ 5 & 5 \\ 6 & 6 \end{array}$$

Graph the long-run supply curve for this market.

Jane's Juice Bar has the following cost schedules:

$$\begin{array}{lcc} \text { Quantity } & \text { Variable Cost } & \text { Total Cost } \\ \hline 0 \text { vats of juice } & \$ \quad 0 & \$ 30 \\ 1 & 10 & 40 \\ 2 & 25 & 55 \\ 3 & 45 & 75 \\ 4 & 70 & 100 \\ 5 & 100 & 130 \\ 6 & 135 & 165 \end{array}$$

Graph all three curves. What is the relationship between the marginal-cost curve and the average-total-cost curve? Between the marginal-cost curve and the average-variable-cost curve? Explain.

The position s of a point (in feet) is given as a function of time t (in seconds). Find (a) its acceleration as a function of t and (b) its acceleration at the specified time. $s=2 \sqrt{t}+t^{3}$; t=1

Tobey is using a step counter as part of a fitness program. During lunch, he walks 441 steps. Each step averages 30 inches in length. Use a unit multiplier and a calculator to find his total distance during lunch (in miles). Round to the nearest hundredth of a mile.

Your cousin Vinnie owns a painting company with fixed costs of $\$200$ and the following schedule for variable costs:

Consider the following table of long-run total costs for three different firms:

$$\begin{array}{lrrrrrrr} \text{ Quantity } & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\ \hline \text{ Firm A} & \$ 60 & \$ 70 & \$ 80 & \$ 90 & \$ 100 & \$ 110 & \$ 120 \\ \text{ Firm B} & 11 & 24 & 39 & 56 & 75 & 96 & 119 \\ \text{ Firm C} & 21 & 34 & 49 & 66 & 85 & 106 & 129 \end{array}$$

Does each of these firms experience economies of scale or diseconomies of scale?

You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost schedule:

$$\begin{array}{lc} \text{ Quantity } & \text{ Average Total Cost } \\ \hline 600 \text{ players } & \$ 300 \\ 601 & 301 \end{array}$$

Your current level of production is $600$ devices, all of which have been sold. Someone calls, desperate to buy one of your music players. The caller offers you $\$ 550$ for it. Should you accept the offer? Why or why not?

Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs:

Quantity of houses painted per month 1 2 3 4 5 6 7

Variable costs$10 $20$40 $80$160 $320$640

Calculate average fixed cost, average variable cost, and average total cost for each quantity. What is the efficient scale of the painting company?