3.
MPL = Change in output per unit rise in labor
Cost of per student hired = 20
TC = Cost of equipment + cost of student
Students | Output | MPL | Cost of equipment | Cost of student hired | TC |
0 | 0.00 | 100 | 0 | 100 | |
1 | 100.00 | 100 | 100 | 20 | 120 |
2 | 180.00 | 80 | 100 | 40 | 140 |
3 | 240.00 | 60 | 100 | 60 | 160 |
4 | 280.00 | 40 | 100 | 80 | 180 |
5 | 300.00 | 20 | 100 | 100 | 200 |
Production function is output vs no. of students hired
Total cost is plotted vs total output
Pls upload rest of the questions separately as HOMEWORKLIB Policy
b) If this is a perfectly competitive market, what is the equilibrium quantity and price? Answer:...
3. The economic student association at the University X is hiring students to make banners "I love economics” for the coming conference. Complete the following table and plot the production function and the cost function for producing banners. (Marks 10) Number of Output Marginal Cost of Cost of Total Cost Students Product of Equipment Students Hired Hired Labour 100 100 100 140 100 100 180 300 100
3. The economic student association at the University X is hiring students to make banners “I love economics” for the coming conference. Complete the following table and plot the production function and the cost function for producing banners. (Marks 10) Number of Output Marginal Cost of Cost of Total Cost Students Product of Equipment Students Hired Hired Labour 100 100 100 140 240 100 180 300 100
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4. If you are operating a business in a perfectly competitive market. You can sell as much as at the market price. Why can you not simply increase your profits by selling a highest quantity? (10 marks) Answer:
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15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes the firm's profit? b. At the profit-maximizing output, calculate total revenue and total cost. C. If the firm maximizes profit, how much profit does it earn? d. What will likely happen to market demand or market supply in the long run? e. What will likely happen to the market price in the long run? Price (s) d = P =...
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