Suppose that a monopoly firm finds that its MR is $58 for the first unit sold each day, $57 for the second unit sold each day, $56 for the third unit sold each day, and so on. Further suppose that the first worker hired produces 5 units per day, the second 4 units per day, the third 3 units per day, and so on. Instructions: Enter your answers as a whole number. a. What is the firm's MRP for each of the first five workers? MRP, Worker Unregulated 1 2 3 4 b. Suppose that the monopolist is subjected to rate regulation and the regulator stipulates that it must charge exactly $48 per unit for all units sold. At that price, what is the firm's MRP for each of the first five workers? MRP, Regulated Worker 1 2

Suppose that a monopoly firm finds that its MR is $58 for the first unit sold each day, $57 for the second unit sold each day, $56 for the third unit sold each day, and so on. Further suppose that the first worker hired produces 5 units per day, the second 4 units per day, the third 3 units per day, and so on. Instructions: Enter your answers as a whole number. a. What is the firm's MRP for each of the first five workers? MRP, Worker Unregulated 1 2 3 4 b. Suppose that the monopolist is subjected to rate regulation and the regulator stipulates that it must charge exactly $48 per unit for all units sold. At that price, what is the firm's MRP for each of the first five workers? MRP, Regulated Worker 1 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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