You are scoring ONLY #1 (5 points), 26.1 (8 points), 26.2 (2 points), #4 (1 point), #5 (1 point), #6 (1 point), and #7 (1 point) for a total of 19 points. We will score the rest in class so bring your worksheet.

What to remember:

- In Part A, the return on investment is a LOSS when OPPORTUNITY COST is included. This gives a negative rate of return if "psychic income" from being in business for yourself is ignored.

- Remember the steps to compute MC: 1. Begin with the schedule of TC at each output level. 2. Calculate the change in total cost over the output interval. 3. Calculate the change in the number of units of output over the output interval. 4. Divide change in TC by change in Q. 4. Plot at the midpoint of the output interval.