Answered: 47. Which of the above figures…

47. Which of the above figures represents a firm facing purely competitive labor market? O(a) fig. A (b) fig. B O(c) fig. C (d) fig. A and fig. C O(e) fig. B and Fig. D.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Fig. A
Fig. C
250
200
150
$
100
50
0
$
250
200
150
100
SA
0
50
0
0
VMP=MRP
(c) fig. C
(d) fig. A and fig. C
O(e) fig. B and Fig. D.
LS-MFC
10 20
MRP
LS MFC
10
VMP
20
30
40
50
30 40 50
L
47. Which of the above figures represents a firm facing purely competitive labor market?
(a) fig. A
(b) fig. B
Fig. B
Fig. D
250
200
150
100
50
0
250
200
150
100
50
0
$
0
0
$
10
VMP=MRP
MRP-
10
20
VMP
20
30
30
40
40
50
-2
LS
LS
50
MFC
MFC

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The table shows the short-run production of a firm that produces and sells its product in a perfectly competitive market for Question 1-2. 1. If the firm sells its product at the market price of $10 per unit, the marginal revenue product of the fourth worker is C. $65 A. $40 B. $50 D. $260 E. $30 2. If the firm sells its product at the market price of $10 per unit, how many workers should the firm employ to maximize profit if the wage rate is $55? A. One B. Two C. Three D. Four E. Five 3 A firm's decision to hire a foot DAT TOR Number of Workers 0 1 2 3 4 5 Quantity of Output 0 8 15 21 26 30
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Econ 201. Name Assume that this is the cost function for a perfectly competitive firm: Cost (q) = 5 q' + 20 For this cost function, Marginal Cost = MC = 10 q . Fill in the table with your values from your cost function. Total Cost AVC AFC ATC MC 20 -- 1 3 3) For any cost function, you can find min A setting ATC = Land solving for q. Create a graph showing the minimum of function, Add AVC and MC to your graph. ) Here MC is always increasing. As q increa nappens to ATC when it is less than MC and w happens to ATC with is more than MC? At what level of production is AVC at its minimum? (the table you made is enough information for you to fin value.) For any price, will your firm always be able to cover its variable cost?