Father Saturnino Urios University

Microeconomics
Semi-Final Exam

FLOWER HEADBAND

Members Paper Group Score Pair Score Total Score

Score
Andrino, Angel
Rose
Bano, Nicole Kris
B.
Bolotano, Elliamae
Tricia A.
Coliao, Leogen V.
Durano, Rowen
Familangco,
Jouana Rose
Jumaday, Shaira
May
Maderal, Rey
Gabriel D.
Orongan, Carizza
Lynn A.
Ricaforte, Angelu
Arthur
Salazar, Lyra
Silaga, Jayce
Allison E.
Suarez, Richter
Alison
Talili, Vingie Mae
G.
 VARIABLE INPUTS FIXED INPUTS
Plastic Flowers
Lace
Headband (P160.00 / 4
Laborer (P25.00 / 5 Scissors Chair Working Area
(P19.75 / 3 bundles)
meters) (convert (P12.00 / piece)
pieces) (50 flowers /
to 196.85 inches)
bundle)
P1.00 / laborer P6.58 / piece P1.25 / 9.84 P8.00 / 10 P1.20 / round P1.00 / round P2.00 / round
inches flowers

DETAILED PROCEDURE

1. Separate the three pieces of headband that were tied together when bought.
2. Cut the lace into meter (25 cm. or 9.84 inches) each.
3. Tie the lace into a ribbon on a headband.
4. Unbundle the plastic flowers.
5. Attach the first plastic flower onto the headband thru its stem wire.
6. Attach the second plastic flower onto the headband thru its stem wire.
7. Attach the third plastic flower onto the headband thru its stem wire.
8. Attach the fourth plastic flower onto the headband thru its stem wire.
9. Attach the fifth plastic flower onto the headband thru its stem wire.
10.Attach the sixth plastic flower onto the headband thru its stem wire.
11.Attach the seventh plastic flower onto the headband thru its stem wire.
12.Attach the eighth plastic flower onto the headband thru its stem wire.
13.Attach the ninth plastic flower onto the headband thru its stem wire.
14.Attach the last plastic flower onto the headband thru its stem wire.
15.Finally, check the finished product.

Average Product Marginal Product Average Cost Marginal Cost

Function Function Function Function
AP = a + bTP MP = a + bTP AC = a + bTP MC = a + bTP

Where, x = TP and Where, x = TP and Where, x = TP and Where, x = TP and

y = AP y = MP y = AC y = MC

AP = MP = AC = MC =
 V. FUNCTION AND GRAPH

AP & MP FUNCTIONS
35

30

25

20
AC
15 MC

10

0
0 0.6 2 2 4 4 2 2 1 3
AP FUNCTION MP FUNCTION
AP = a + bTP MP = a + bTP
Let x = TP and y = AP Let x = TP and y = MP
X Y X Y
(TP) (AP) (TP) (MP)
0 0 0 0
0.6 0.6 0.6 0.6
2 1 2 1
2 60.667 2 60.667
4 1 4 1
4 0.8 4 0.8
2 0.286 2 0.286
2 0.25 2 0.25
1 0.111 1 0.111
3 0.273 3 0.273
A = 0.25162 B = 0.13435 A = -0.44131 B = 0.36757
AP = 0.25162 + 0.13435(TP) MP = -0.44131 + 0.36757

AC & MC FUNCTIONS

X Y X Y
AC FUNCTION MC (TP) (MC) FUNCTION
AC = a + bTP (TP) (AC) MC = a + bTP
0 0
Let x = TP and y =0AC 0 Let x = TP 0.6 23.388 and y = MC
0.6 30.888
2B = -2.97360
20.933 2 16.881
A = 30.64724 A= 2 0 17.68917 B = -2.33502
AP = 30.64724 - 2 21.433
2.97360(TP) MC = 4 18.333 17.68917 - 2.33502(TP)
4 19.883
4 20.133 4 0
2 23.433 2 16.833
2 23.933 2 0
1 31.033 1 16.833
3 22.9 3 18.833

QUESTIONS:
1. How much are you going to produce at the end of Stage I?
Answer:

2. How much are you going to produce at the end of Stage II?
Answer:

3. How many output are you going to produce under the minimum cost condition?
Answer: