How many workers will this film employ if the weekly wage is dollar 240? The fol
ID: 1094631 • Letter: H
Question
How many workers will this film employ if the weekly wage is dollar 240? The following table depicts the output of a firm that manufactures computer printers. The printers sell for dollar 50 each. Calculate the marginal physical product at each input level above 10 units. Calculate the marginal revenue product at each input level above 10 units. Suppose that the market price in a perfectly competitive industry is dollar 50 per unit. Using the line drawing tool, plot a possible marginal revenue line given this price. Label this line 'MR'. Carefully follow the instructions above, and only draw the required objects. In graph, the profit-maximizing price for a monopoly is The monopolistically competitive firm at a level of output of Q1 in the diagram is Megabucks and CashCow are the only two firms in a market. Each firm must decide whether to price high or price low. The payoffs from each strategy combination are shown to the right - in millions of dollars. The first number in each pair is Megabucks' profit; the second is CashCow's profit. If the firms cooperate, the strategy that Megabucks will choose is , and the strategy that CashCow will choose is If the firms behave opportunistically, the strategy that Megabucks will choose is , and the strategy that CashCow will choose isExplanation / Answer
1)
The firm will employ labor till:
wage=MP*MR
240=60*4
This is possible with labor 29. The answer is D
2)
To obtain the marginal product , subtract the consecutive total product. Similar is for marginal revenue. For example, the marginal revenue of 4th labor is the difference between total revenue of 4th labor minus total revenue of 3rd.
3)
In a perfect competition price=marginal revenue-average revenue. Thus it will be a horizontal line starting from y axis at 50.
4)
P1 is the profit maximizing point for monopoly. It produces at MR=MC, then charges where this quantity cuts AR or demand curve.
The answer is A.
5)
The monopolisticaaly competitive firm here is in the long run equilibrium as the average cost is equal to demand curve. There is no super normal profit.
The answer is D. The firm is in long run equilibrium.
6)
If firms cooperative both will charge high price, both of them
If they behave opportunistically, then they will charge low price in fear of losing if they charge high
Labor Total physical output (TP) Marginal physical product(MP) Price Total revenue (Price*TP) Marginal revenue 10 200 50 0 11 221 21 50 11050 11050 12 240 19 50 12000 950 13 257 17 50 12850 850 14 272 15 50 13600 750 15 285 13 50 14250 650 16 296 11 50 14800 550Related Questions
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