FATHER SATURNINO URIOS UNIVERSITY

MICROECONOMICS
SEMI-FINAL EXAM
A32 / T-F 3:00-4:30

NAME OF PRODUCT

NAME OF MEMBERS PAPER SCORE GROUP QUESTIONS PAIR SCORE TOTAL

Arizala, Mark Christian L.
Bureros, Patricia
Catubag, Aira
Escrupolo, Princess Diana D.
Isaga, Reve Joy E.
Isobal, Christian M.
Lacaba, Karen
Militante, Arven
Palen, Aldous Joseph
Paradiang, Junbert A.
Pasos, Joyce Ann
Peteros, Marionbelle Jairah
Reveche, Jemimah
Reveche, Jerome
 I. INPUTS AND ITS COST

VARIABLE INPUT FIXED INPUT

Laborer Cyan Big Red Pink White Ring PAMO Area Chair Scissor Ruler Container
(P1.00/ Beads Blue Square Oval Beads [P3.00/ String (P2.00/ (P1.00/ (P10.00) (P5.00) (P10.00
round) [P35.00 Beads Beads Beads [P40.00/ ring (P45.00 round) round) for 5
/pack [P30.00 [P20.00/ [P20.00/ Pack (40 at cost pcs)
(109 /pack pack pack (104 pcs)] which is
pcs)] (62 (117 (128 pcs)] P1.00/
pcs)] pcs)] pcs)] yard)
P0.48/ P0.17/ P0.16/
P0.32/ P0.38/
Big Red Pink P0.028/ P1.00/ P0.50/ P1.00/
P1.00 Cyan White P3.00 P2.00 P1.00
Blue Square Oval inch round round round
Bead Beads
Beads Beads Beads

II. DETAILED PROCEDURE

1. Measure 12 inches of the PAMO String using a ruler.
2. Cut the measured PAMO String.
3. Using both hands, meet the ends of the string and tie an overhand knot near the end of the string.
4. Insert the first cyan bead to the string.
5. Insert a red square bead.
6. Insert a white bead.
7. Insert a pink oval bead.
8. Insert the big blue bead.
9. Insert another pink oval bead.
10. Insert another white bead.
11. Insert another red square bead.
12. Insert another cyan bead.
13. Tie the beaded string into the ring.
 PRODUCTION TABLE

Variable Inputs per unit Fixed Inputs per unit

Number of Outputs
Experiment Level

Pink Oval Beads

Big Blue Beads

White Beads

PAMO String
Cyan Beads

Red Square

Containers
Number of
Laborers

(inches)

Scissor
Beads

Chair

Ruler
Ring

Area
1st 0 0 0 0 0 0 0 0 0 1 1 1 1 5

2nd 1 1 2 1 2 2 2 1 12 1 1 1 1 5

3rd 3 3 6 3 6 6 6 3 36 1 1 1 1 5

4th 5 4 10 5 10 10 10 5 60 1 1 1 1 5

5th 6 5 12 6 12 12 12 6 72 1 1 1 1 5

6th 7 6 14 7 14 14 14 7 84 1 1 1 1 5

7th 3 8 6 3 6 6 6 3 36 1 1 1 1 5

8th 0.38 9 1 0 1 0 0 0 12 1 1 1 1 5

9th 10 10 20 10 20 20 20 10 120 1 1 1 1 5

10th 4 12 8 4 8 8 8 4 48 1 1 1 1 5
 COST PRODUCTION TABLE

Variable Cost Fixed Cost

Average Variable Cost

Total Variable Cost
Number of Laborers

Average Fixed Cost

Number of Outputs

VC5 Pink Oval Beads

Experiment Level

Marginal Product

Total Fixed Cost

VC3 Big Blue Beads
Average Product

Marginal Cost
VC6 White Beads

VC8 PAMO String

Average Cost
VC2 Cyan Beads

VC4 Red Square

FC5 Containers

Total Cost
VC1 Laborers

VC9 Mark Up

FC3 Scissor
FC2 Chair

FC4 Ruler
VC7 Ring

FC1 Ares
Beads
1st 0 0 0 0 0 0 0 0 0 0 0 0 0 2 1 1 0.50 1 0 - 5.50 - 5.5 - -

2nd 1 1 1 1 1 0.64 0.48 0.34 0.32 0.76 3 0.34 1 2 1 1 0.50 1 7.88 7.88 5.50 5.50 13.38 13.38 7.88

3rd 3 3 1 1 3 1.92 1.44 1.02 0.96 2.28 9 1.01 3 2 1 1 0.50 1 23.63 7.88 5.50 1.83 29.13 9.71 7.88

4th 5 4 1.25 2 4 3.20 2.40 1.70 1.60 3.80 15 1.68 5 2 1 1 0.50 1 38.38 7.68 5.50 1.1 43.88 8.78 7.38

5th 6 5 1.20 1 5 3.84 2.88 2.04 1.92 4.56 18 2.02 6 2 1 1 0.50 1 46.26 7.71 5.50 0.92 51.76 8.63 7.88

6th 7 6 1.17 1 6 4.48 3.36 2.38 2.24 5.32 21 2.35 7 2 1 1 0.50 1 54.13 7.73 5.50 0.79 59.63 8.52 7.87

7th 3 8 0.375 -2 8 1.92 1.44 1.02 0.96 2.28 9 1.01 3 2 1 1 0.50 1 28.63 9.54 5.50 1.83 34.13 11.38 6.38

8th 0.38 9 0.042 -2.62 9 0.32 0 0.17 0 0 0 0.34 0.38 2 1 1 0.50 1 10.21 26.87 5.50 14.47 15.71 41.34 7.03

9th 10 10 1 9.62 10 6.40 4.80 3.40 3.20 7.60 30 3.36 10 2 1 1 0.50 1 78.76 7.88 5.50 0.55 84.26 8.43 7.13

10th 4 12 0.33 -3 12 2.56 5.76 1.36 1.28 3.04 12 1.34 4 2 1 1 0.50 1 43.34 10.84 5.50 1.375 48.84 12.21 5.90
 AP & MP FUNCTION

AP FUNCTION MP FUNCTION

AP = a + b(TP) MP = a + b(TP)

Let: x = TP ; y = AP Let: x = TP ; y = MP

x y
(TP) (AP)
1 1
3 1
5 1.25
6 1.20
7 1.17
3 0.375
0.38 0.042
10 1 10
4 0.33
x y
(TP) (MP)
1 1
3 1
5 2
6 1
7 1
3 -2
0.38 -2.62
9.62
4 -3

A = 0.466141731 B = 0.080541503 A = -3.268290456 B = 0.950091775

AP = 0.4661 + 0.0805(TP) MP = -3.2683 + 0.9501(TP)

 AC & MC FUNCTION

AC FUNCTION MC FUNCTION

AC = a + b(TP) MC = a + b(TP)

Let: x = TP ; y = AC Let: x = TP ; y = MC

x y
(TP) (AC)
1 13.38
3 9.71
5 8.78
6 8.63
7 8.52
3 11.38
0.38 41.34
10 8.43
4 12.21
x y
(TP) (MC)
1 7.88
3 7.88
5 7.38
6 7.88
7 7.87
3 6.38
0.38 7.03
10 7.13
4 5.90

A = 22.88903686 B = -2.123446718 A = 7.159984269 B = 0.022603899

AC = 22.8890 2.1234(TP) MC = 7.15998 + 0.02260(TP)

45

41.34
40

35

30

25

MC
20
AC

15
13.38
12.21
11.38
10 9.71
8.78 8.63 8.52 8.43
7.88 7.88 7.38 7.88 7.87
7.03 7.13
6.38 5.9
5

0
0 2 4 6 8 10 12
 ADDITIONAL REQUIREMENTS

1. Number of products to be produced at the start of -0.9501(TP) = -3.2683

stage 2. -0.9501(TP) = -3.2683
-0.9501 -0.9501
AP = MP
TP = 3.439953689 or 3.44
SOLUTION:

AP = 0.4661 + 0.0805(TP)
MP = -3.2683 + 0.9501(TP)

0.4661 + 0.0805(TP) = -3.2683 + 0.9501(TP)

3. Number of products under the minimum cost
0.0805(TP) - 0.9501(TP) = -3.2683 - 0.4661
condition.
-0.8696(TP) = -3.7344
AC = MC
-0.8696(TP) = -3.7344
-0.8696 -0.8696 SOLUTION:
TP = 4.294388224 or 4.29 AC = 22.8890 2.1234(TP)
MC = 7.15998 + 0.02260(TP)

22.8890 2.1234(TP) = 7.15998 + 0.02260(TP)

2.1234(TP) - 0.02260(TP) = 7.15998 - 22.8890
2. Number of products to be produced at the end of - 2.1460(TP) = - 15.72902
stage 2.
- 2.1460(TP) = - 15.72902
MP = 0 - 2.1460 - 2.1460

SOLUTION: TP = 7.329459459 or 7.33

MP = -3.2683 + 0.9501(TP)
0 = -3.2683 + 0.9501(TP)