56 48 40 32 24 16 00 - Total Cost is $ 2400 4800 7200 The graph shows the short-run cost curves for a firm in a perfectly competitive market. The firm's only variable input is labour and the wage rate is $36. If market price is $48: - profit-maximizing level of output is - Total Fixed Cost is $ - for the profit maximizing output the firm should hire - the firm's profit is $ If market price is $16: - profit-maximizing level of output is - the firm's profit is $ 9600 ATC units of labour. AVC

56 48 40 32 24 16 00 - Total Cost is $ 2400 4800 7200 The graph shows the short-run cost curves for a firm in a perfectly competitive market. The firm's only variable input is labour and the wage rate is $36. If market price is $48: - profit-maximizing level of output is - Total Fixed Cost is $ - for the profit maximizing output the firm should hire - the firm's profit is $ If market price is $16: - profit-maximizing level of output is - the firm's profit is $ 9600 ATC units of labour. AVC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Labor 1 2 3 4 5 TP (or q) 5 22 APL 6 5 The price of labor, w, is $210 per unit and the price at which a competitive firm can sell its output is $30 per unit. In the short run it will hire A. 0 units of labor (shut down) B. 2 units of labor C. 3 units of labor D. 4 units of labor E. 5 units of labor The price of labor, w, is $210 per unit and the price at which a competitive firm can sell its output is $70 per unit. Its fixed costs are $100. In the short run, the firm makes a profit of A. -$100 B. $500 C. $530 D. $600 E. $700 MPL 6
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The next 3 questions refer to the following: The table below shows a competitive firm's short-run production function. Labour is the firm's only variable input, and market price for the firm's product is $9 per unit. Labour Output 410 590 720 790 835 855 3 A W 4 5 6 7 8 The 5th unit of labour adds $ to the firm's total revenue. If the wage rate is $190, the firm will employ units of labour. If market price for the firm's product decreases to $3, at the same wage rate of $190 the firm will earn a profit of $
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Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…
Saved The following table shows the production function for a bicycle manufacturer: Number of Workers Number of Bicycles Marginal Product Marginal Revenue 1 3 2 7 3 10 $ 4 12 2 13 $ 1 a) Suppose that the weekly wage is $700. What is the marginal labor cost of the second worker per week? $ b) Suppose that the price of a bicycle is $460. What is the marginal revenue for each level of output? Instructions: Fill in the values for the marginal revenue in the table above. c) How many workers does the bicycle manufacturer employ if the price per bicycle is $460 and the weekly wage is $700? workers d) If the price per bicycle drops to $300, what happens to the number of employed workers? The number of employed workers will (Click to select) Next> 5 of 8 < Prev T e e to search ASLS f12 pause break f10 f8 f6 f7 f5 f3 f4 2 & $ 4 ## 3 8 7 5 P U Y T R E A 2
Homework (Ch 14) PRICE (Dollars per instant pot) 100 90 80 70 60 50 40 30 20 10 0 0 MC 5 ATC AVC 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of instant pots per day) Profit or Loss In the short run, given a market price equal to $50 per instant pot, the firm should produce a daily quantity of The rectangular area represents a short-run (?) On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $50 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs loss. thousand per day for the firm. of $ instant pots.
4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for demin overalls. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. 50 45 45 O O 40 35 35 30 PRICE (Dollars per overalls) 20 15 10 5 + 0 0 2 ATC AVC MC 46 8 10 12 14 16 18 20 20 QUANTITY (Thousands of overallses per day) Profit or Loss ?
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Farmer Lee grows strawberries. The average total cost and marginal cost of growing strawberries in the long run for an individual farmer are illustrated in the graph to the right. Suppose the market price is $7.05 per box. If so, then farmers will strawberries until the market price is $ number rounded to two decimal places.) per box. (Enter a numeric the market for a real enter exit Price and cost (dollars per box) 10- 9- 8- 5- 3- 2- 1. 0 MC ATC 10 20 30 40 50 60 70 80 90 100 Quantity of strawberries (boxes per week) o