Graph the demand for Mac and Cheese. ( 6 points)   Fill in the chart : (6 pts)

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Pe _______


Change in demand _____________

Change in Quantity Demanded __________

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Change in Supply________________

Change in Quantity Supplied_______________


  1. Use fixed costs and Variable costs to explain why a business would stay open if it is operating at a loss. (4 points)
  2. Explain if the decision is the short-run or long run? Make sure you use the textbook and class notes to answer these questions explaining the rules of maximizing profits and minimizing losses. (4pts)


  1. Graph 1
  2. Name of Market Structure (3 points)
  3. Ability to control prices. (3 points)
  4. Spending on advertising and marketing (3 points)
  5. Pure profit, Normal profit or losses. (3 points)
  1. 4. Amtrak was using the economic concept of ____________(4 points)

3 Requirements (6 points

  1. Name of Market Structure? (3 points)
  2. Ability to control prices. (3 points)
  3. Spending on advertising and marketing (3 points)
  4. Pure profit, Normal profit or losses. (3 points)


  1. 6. Complete the following short-run cost table using the information provided.

(15 points)


Total product  












0 $_____ $_____ $_____ $_____
1 _____ $_____ _____ $12 _____ _____
2 _____ 12 _____ 10 _____ _____
3 _____ _____ _____ 12 _____ _____
4 _____ _____ _____ 14 _____ _____



  1. A. The shutdown point is at P? ____________( 3 points)
  2. The break- even point is at Q ? ____________( 3 points)


  1. The ECONOMIC term for what they did is __________________________________________. (4 pts



a This is a classic example of their market structure which is called________________________ (3 pts)

  1. What would the demand curve look like for this market structure?

(3 pts)

Facility Planning Template

  1. You must show your work.
  2. What is Al’s total revenue? 3 pts)
  3. What are Al’s explicit costs? In numbers (3 pts)
  4. What is his accounting profit? In Numbers (3 pts)
  5. List 2( in numbers ) implicit costs that Al has not included. (3 pts)
  6. What is Al’s pure economic profit (loss)in numbers? ( 3 pts)

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