Quantity of operators hired at a weekly wage of $250.

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Answer 1

Question

Chapter 25, Problem 3CQ

(a):

To determine

Quantity of operators hired at a weekly wage of $250.

(b):

To determine

Maximum profit of the firm when the fixed cost is $1,500 per week.

(c):

To determine

Condition of the firm when the market price for each statement falls to $150.

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1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically. 2. Consider the following table of long-run total costs for three different firms: Quantity Total Cost ($) Firm A Firm B Firm C 1 60 11 21 2 70 24 34 3 80 39 49 4 90 56 66 5 100 75 85 6 110 96 106 7 120 119 129 Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer with necessary calculations.

Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer.State the condition for a consumer's utility maximizing choice and illustrate graphically.

1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically.

Answer 2

Question

Chapter 25, Problem 3CQ

(a):

To determine

Quantity of operators hired at a weekly wage of $250.

(b):

To determine

Maximum profit of the firm when the fixed cost is $1,500 per week.

(c):

To determine

Condition of the firm when the market price for each statement falls to $150.

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Answer 3

Question

Chapter 25, Problem 3CQ

(a):

To determine

Quantity of operators hired at a weekly wage of $250.

(b):

To determine

Maximum profit of the firm when the fixed cost is $1,500 per week.

(c):

To determine

Condition of the firm when the market price for each statement falls to $150.

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Answer 4

Question

Chapter 25, Problem 3CQ

(a):

To determine

Quantity of operators hired at a weekly wage of $250.

(b):

To determine

Maximum profit of the firm when the fixed cost is $1,500 per week.

(c):

To determine

Condition of the firm when the market price for each statement falls to $150.

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Answer 5

Chapter 25, Problem 3CQ

(a):

To determine

Quantity of operators hired at a weekly wage of $250.

(b):

To determine

Maximum profit of the firm when the fixed cost is $1,500 per week.

(c):

To determine

Condition of the firm when the market price for each statement falls to $150.

Answer 6

Chapter 25, Problem 3CQ

(a):

To determine

Quantity of operators hired at a weekly wage of $250.

Answer 7

Chapter 25, Problem 3CQ

(a):

To determine

Quantity of operators hired at a weekly wage of $250.

Answer 8

(b):

To determine

Maximum profit of the firm when the fixed cost is $1,500 per week.

Answer 9

(b):

To determine

Maximum profit of the firm when the fixed cost is $1,500 per week.

Answer 10

(c):

To determine

Condition of the firm when the market price for each statement falls to $150.

Answer 11

(c):

To determine

Condition of the firm when the market price for each statement falls to $150.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 25 - Prob. 1CQ Ch. 25 - Prob. 2CQ Ch. 25 - Prob. 3CQ Ch. 25 - Prob. 4CQ Ch. 25 - Prob. 5CQ Ch. 25 - Prob. 6CQ Ch. 25 - Prob. 7CQ Ch. 25 - Prob. 8CQ Ch. 25 - Prob. 9CQ Ch. 25 - Prob. 10CQ

Quantity of operators hired at a weekly wage of $250.

Solution Summary: The author explains that a profit-maximizing firm will only employ an additional labor when the marginal revenue product of the extra labor is greater than the cost of hiring the new labors.

Concept explainers

Quantity of operators hired at a weekly wage of $250.

Maximum profit of the firm when the fixed cost is $1,500 per week.

Condition of the firm when the market price for each statement falls to $150.

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Chapter 25 Solutions