QUESTION 40Critics of the minimum wage argue thatO a. labor demand is inelastic so firms can adjust production.O b. too many older employees benefit at the expense of teenage workers.O c. many minimum-wage earners are teenagers from middle-class families.O d. All of the above are correct.QUESTION 41Figure 14-13Suppose a firm in a competitive industry has the following cost curves:109874.543.5↑ PriceIP3+21MCATCAVC1 2 3 4 5 6 7 8 QuantityRefer to Figure 14-13. If the price is $6 in the short run, what will happen in the long run?O a. Because the price is below the firm's average variable costs, the firms will shut down.O b. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry.O c. Nothing. The price is consistent with zero economic profits, so there is no incentive for firms to enter or exit the industry.O d. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry.

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Answered: QUESTION 40 Critics of the minimum wage…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 11PA: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2...

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Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
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* Please meke and descriptive Consider a competitive firm wwith the following your answer easy read to Question pcoductian function Q = L9 KR b. where Q = of output quentity quantity of labor quantity of labor Price of the product (P) = 10$ Unit wage an hour (w) Discount cate () F 10% O, 4 1) what s the critical value off laber (^)) 2) what the ccitical alue of labor (KO? 3) What is. the profit (Ji) ? maximun
Ajumbo jet carrying 400 passengers is priced higher than a 250-passenger model even though both aircraft cost the same to manufacture. Compared to the 250-passenger model, the jumbo jet carrying 400 passengers O A. has a higher marginal revenue product because it's marginal product is smaller. O B. has a higher marginal revenue product because the marginal revenue from an additional ticket for a seat on one of its flights is higher. O C. has a lower marginal revenue product because it's average cost per seat is lower. O D. has a higher marginal revenue product because it's marginal product is larger. O E. has a higher marginal revenue product because the marginal revenue from an additional ticket for a seat on one of its flights is lower.
abus ules Marginal Marginal Output Revenue Cost se Materials aw-Hill ct 012 $18 $4 $18 $6 $18 $10 3 $18 $18 4 $18 $26 $37 ns Resources 5 $18 Refer to the data in the accompanying table. If the firm's minimum average variable cost is $17, the firm's profit-maximizing level of output would be. p O 1 03 04 02 200m
essay (on this firm) argues that, the firm would be better off by closing down. Do you a unit of output of this company is Birr L3. A student working on his senior A company in a perfectly competitive market has a total cost function given as: 6. TC 50+40+ The price agree? Explain By using the knowledge of relationshins among the various cost concepts, fill the bia cells of the following table. Quantity TFC TVC TC MC AFC AVC ATC 50 50 64 98 162 26 20 finms (Fi and Fa) producing identical product competing for like to dominate the other, if possible. They each defends
A strawberry farmer, operating ih a perfectly competitive market, is currently producing 99 packs of strawberries. The market price for a pack of strawberries is $6 a pack. The marginal cost of producing one more pack for the farmer is $5. What is the marginal revenue the farmer will receive from producing his 100th pack of strawberries? (Hint: If you aren't sure what marginal revenue means, look it up before choosing an answer) O $0.06 O $6 O $1 O $100
Please see the attached11
Exhibit 21-9 Cost MC, ATC₂ MC1 ATC1 MC 3 PI ATC 3 Quantity of Output Refer to Exhibit 21-9. Let MC 1 and ATC 1 represent the initial cost curves of a peanut butter producer. In which of the following cases is it most likely that the firm's curves will shift leftward to MC 2 and ATC 2? O a. The market price of peanuts decreases. O b. The market price of peanuts increases. O c. The government lowers taxes paid by peanut butter producers. O d. The market price of peanuts remains constant.
Perfectly Competitive Firm: Short-run Revenues, Cost, Profit Price Tot Rev P*Q Total MC= MP =AQ/AL W=$20 Labor Q=TP Var Cost Fixed Cost CostD ATC/AQ TR-TC input VC +FC 100 100 10 -100 5 5 20 100 120 10 50 -70 15 10 40 100 140 10 150 10 23 60 100 160 2.5 10 230 70 4 26 80 100 180 6.67 10 260 80 5 29 100 100 200 10 10 290 90 30 120 100 220 20 10 300 80 6. What does the relationship between MPL and MC tell you? What is marginal revenue of Q=23? Q= 29? Where is Profit maximized? • What do you think the Total Revenue and Total Ccst Cárves look fike in Pand Q space? 9:09 / 10:11 YouTube CC 72. In the video, what is the level of output that will maximize the firm's profit? Select one: a. Q=23 b. Q=26 c. Q=29 d. Q=30 4.
MC 2,000 ATC 1,600 1,200 800 400 90 130 170 210 Quantity (lons per day) The figure above shows the costs for a grower in the perfectly competitive turnip market. If the price is $1,200 for a ton of turnips, the firm is Select one: O a. making an economic profit. O b. making zero economic profit. C. incurring an economic loss. O d. More information is needed to determine if the firm is making a positive economic profit, zero economic profit, or incurring an economic loss. Price and costs (dollars per ton)

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QUESTION 40 Critics of the minimum wage argue that O a. labor demand is inelastic so firms can adjust production. b. too many older employees benefit at the expense of teenage workers. O c. many minimum-wage earners are teenagers from middle-class families. O d. All of the above are correct.