1. EQ #8 – AGEC 105 – October 14, 2013 (4pts) E MC $ D 50 ATC AVC C 30 BE MC $ D 50
ATC C
AVC 30 B 16 14 A 25 30 32 40 Q
(units)

2. MVP = MIC E MC $ D 50 ATC C AVC 30 B 16 14 A Q 25 30 32 40 (units)
(1/2 pt) 2. The supply curve for the firm is line segment ABCDE. True or False. FALSE, BCDE
(1/2 pt) 3. If a commodity sells for $30/unit and you determine that the MPP for the use of land in the production of this commodity to be 200 units/acre, what is the MVP of the land?
MVP = P0 x MPP = ($30/unit)(200 units/acre) = $6,000/acre
(1/2 pt) 4. What is the rule to determine the optimal level of input use?
MVP = MIC

3. Random Question
What occupation in the public arena (not the private section) in the most states enjoys the highest salary? Football Coach