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- 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 2Problems 1-6 are based on the following information: A company sells PC software whose price is determined by p = 200 - 5Q, where Q is the quantity purchased per day. It has fixed costs of $100 per day and variable costs of $10 per unit sold. Profit is ________ at the profit-maximizing price and quantity. A. $2025 B. $1705 C. $290 D. $105 E. $1995The table below shows average cost data for three different-sized plants—1, 2, and 3—which are the only three sizes possible. Output 100 Plant 1 $18 15 Plant 2 $14 11 200 300 11 7 400 10 500 14 8 9 Plant 3 $10 11 9 10 11 a. In what plant size is MES achieved? (Click to select) b. What is the economic capacity for plant 2? Economic capacity: c. What is the right-size plant to produce an output of 300? ✓ (Click to select) Plant 1 Plant 3 Plant 2
- On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.A movie theater shows films for a community of 10000 people. Right now, the price per ticket is $17.50. In the past, when they increased or decreased the price per ticket, they discovered that for every dollar (or fraction) that the price was increased or decreased, the attendance decreased or increased proportionally by 200 people. The theater owner pays the Film Distribution Company $10 (incremental cost) in royalties per person whoviews the film. Find a. The willingness to pay distribution of the movie goers. b. The average price they would be willing to pay. c. The price per ticket that maximizes revenue. d. Should the theater owner increase or decrease the price per ticket if she wants to maximize contribution? e. Find the consumer surplus if the tickets are priced at the price that maximizes contribution. Please complete in excel showing formulas on how it was completedNumber of Consumers Who Try the Product Number of Repeat Customers 10 million 10 million Product Energy bar A Energy bar B In the table above, the profit from repeat customers will equal the cost of the advertisement if there are Profit per Repeat Customer 5 million 1 million $6 6 Profit from Repeat Customers $30 million 6 million Cost of Advertisement $10 million 10 million million repeat customers. (Enter your response rounded to two decimal places.)
- How does tax affect a firm's fixed, marginal and average costs? 1. When firm must pay lump sum tax (which is a fixed sum, independent of whether it produces any output): • fixed cost of production will remain the same • marginal cost of production will increase · average cost of production will increase 2. When firm must pay a tax proportional to the number of items it produces: • fixed cost of production will [Select ] • marginal cost of production will [ Select] · average cost of production will [ Select ]Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the student recreation center, which pays $6,000 per year. A fully equipped facility can be leased at a cost of $8,000 per year. Additional costs are $1,000 a year for insurance and $.50 per person per hour for materials and supplies. Their services would be priced at $10 per hour per person. a. What are fixed costs? b. What are variable costs? c. What is the marginal cost? d. How many student hours would it take to break even ?Number of Baskets of Fish (per hour) 0 1 2 3 4 5 Price $13 13 13 13 13 Total Revenue $0 13 26 39 52 65 Total Cost $10 15 22 31 44 61 Total Profit $-10 -2 4 8 8 4 Marginal Cost basket(s) of fish basket(s) of fish basket(s) of fish $5 7 9 13 17 Given the information in the table above about fish production, answer three questions. Instructions: Enter your responses as whole numbers. Indicate negative responses with a (-) negative sign. What rate of output a. Maximizes total revenue? b. Maximizes profit per unit? c. Maximizes total profit? (Note: Choose the higher level of output.)
- Gloria decided to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $50,000, $60,000, and $70,000. What is Gloria's economic profit from running her own business? Question 5 options: a) -$75,000 b) -$20,000 c) $20,000 d) none of the aboveVicky quit her $ 75, 000 a year marketing executive job to open her own firm. In Vicky's first year in business her total revenue equaled $ 180,000. Vicky's explicit cost during the year totaled $ 80,000. To start her business Vicky took $ 50,000 from her savings account that was paying an interest of 10% annually. What is her economic profit for her first year in business? A. -$26,000 B. -$ 25,000 C. $ 25,000 D. $ 24,000At P = $20, AVC = $10, AFC = $8 and Q = 20, the result is:a. loss of $10.b. Normal economic profit.c. profit of $20.d. profit of $40
