Homework Answers
Ans. Option c
The equilibrium wage in the labour market is where labour supply curve S0 and demand curve intersect. So, wage rate is w0.
At this wage rate, the firm's equilibrium labour demand is where the marginal revenue product curve (MRPL, the right one having capital K1). So, equilibrium point is A at which the equilibrium labour demand is I0.
*The labels of the curves are missing, so, in case of any error please comment down below the labels so that the answer can be corrected.
Thank you
b) How much output should the monopolist produce in order to maximize profit? c) How much...
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
g) What is the Price Elasticity of Demand at the
profit-maximizing price and quantity?
3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...
Complete parts a and b. a. Perform each of the following operations, i. 17°20'36" + 12°48'44"...
Complete parts a and b. a. Perform each of the following operations, i. 17°20'36" + 12°48'44" ii. 12°25' -6°54' b. Express the following without decimals. 1.0.99 ii. 17.26° a. Perform each operation. i. Choose the correct answer below. en O A. 30°9' 3 OB. 30°9'20" O c. 30°20' 2 OD 9°30'20" ii. Choose the correct answer below. 13 O A. 31°5 OB. 5°31' 1 OC. 531" OD. 5'31" lo b. Express the following without decimals. 1.0.9°=0 Click to select your...
Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two...
Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two inputs of production; each unit of labor is paid the market wage (w), and each unit of capital is rented at the rental price of capital (r). Output (Y) is therefore a function of labor and capital, or Y = f (K, L), and is sold at the market price (P). The goal of this firm is to maximize profit given the price of...
labor as long as the value of marginal product e profitable to hire units of 4 less than wage Exceeds nerage product C...
labor as long as the value of marginal product e profitable to hire units of 4 less than wage Exceeds nerage product C quals price exceeds wage how many workers should be hired to maximize profits? 10. Given the following table how VMP Wage Marginal Labor Product Labor $32 $100 $128 $100 32 $64 $100 $100 S-48 $100 1-12 Q = 10,000 and K = 500, how much laboris production function Q = 10K + 5L, 11. Given the linear...
1 Price 15 14 13 Supply 12 11 10 9 8 7 6 Demand 10 20...
1 Price 15 14 13 Supply 12 11 10 9 8 7 6 Demand 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Quantity In the above figure, the vertical distance between points A and B represents a tax in the market. The amount of deadweight loss as a result of the tax is .... O A. $490. OB. $600. OC. $105. OD. $210.
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and...
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function. (b) Find the profit maximizing output level and the profit function. 12. Consider a firm with production function f(K,L) = K +L. (a) Suppose that capital level is currently fixed at K = 10. Find the short term production cost function for...
P $13 $12 $11 $10 $9 $8 10 14 19 25 30 35 TC $15 $25...
P $13 $12 $11 $10 $9 $8 10 14 19 25 30 35 TC $15 $25 $45 $75 $115 $165 Refer to the above table. Given the demand and cost schedules, what is the profit maximizing quantity for this monopolist? OA, 30 OB, 14 OC. 25 O D. 19
Use the graph below for the following three questions: On 14 12 10 oc Units of...
Use the graph below for the following three questions: On 14 12 10 oc Units of capital, K A G B 4 102 2 1Q1 10 20 30 GO 70 80 40 50 Units ollabor, The graph shows units of labor (labeled L) on the horizontal axis, and units of capital (labeled K) on the vertical axis. A budget line intersects the vertical/capital axis at 10 units, and the horizontal/labor axis at 80 units. Two isoquants are drawn: the first...
A firm with a cost of capital of 13 percent is evaluating three capital projects. The...
A firm with a cost of capital of 13 percent is evaluating three capital projects. The internal rates of return are as folows: Internal Rate Project of Return 1 12% 2 11% 315% The firm should O A. accept Project 1 and reject Projects 2 and 3 OB. accept Project 2 and reject Projects 1 and 3 OC. accept Project 1 and 2 and reject Project 3 OD. accept Project 3, and reject Projects 1 and 2
Q TC 10 $12 15 $30 20 $10 25 $128 30 35 $13 $11 $9 $8...
Q TC 10 $12 15 $30 20 $10 25 $128 30 35 $13 $11 $9 $8 $68 $208 $8 $308 Rofer to the above table. Given the demand and cost schedules, what are the maximized economic profits for this monopolist? OA. $122 OB. S220 OC. $152 OD, $150
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
g) What is the Price Elasticity of Demand at the
profit-maximizing price and quantity?
3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...
Complete parts a and b. a. Perform each of the following operations, i. 17°20'36" + 12°48'44" ii. 12°25' -6°54' b. Express the following without decimals. 1.0.99 ii. 17.26° a. Perform each operation. i. Choose the correct answer below. en O A. 30°9' 3 OB. 30°9'20" O c. 30°20' 2 OD 9°30'20" ii. Choose the correct answer below. 13 O A. 31°5 OB. 5°31' 1 OC. 531" OD. 5'31" lo b. Express the following without decimals. 1.0.9°=0 Click to select your...
Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two inputs of production; each unit of labor is paid the market wage (w), and each unit of capital is rented at the rental price of capital (r). Output (Y) is therefore a function of labor and capital, or Y = f (K, L), and is sold at the market price (P). The goal of this firm is to maximize profit given the price of...
labor as long as the value of marginal product e profitable to hire units of 4 less than wage Exceeds nerage product C quals price exceeds wage how many workers should be hired to maximize profits? 10. Given the following table how VMP Wage Marginal Labor Product Labor $32 $100 $128 $100 32 $64 $100 $100 S-48 $100 1-12 Q = 10,000 and K = 500, how much laboris production function Q = 10K + 5L, 11. Given the linear...
1 Price 15 14 13 Supply 12 11 10 9 8 7 6 Demand 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Quantity In the above figure, the vertical distance between points A and B represents a tax in the market. The amount of deadweight loss as a result of the tax is .... O A. $490. OB. $600. OC. $105. OD. $210.
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function. (b) Find the profit maximizing output level and the profit function. 12. Consider a firm with production function f(K,L) = K +L. (a) Suppose that capital level is currently fixed at K = 10. Find the short term production cost function for...
P $13 $12 $11 $10 $9 $8 10 14 19 25 30 35 TC $15 $25 $45 $75 $115 $165 Refer to the above table. Given the demand and cost schedules, what is the profit maximizing quantity for this monopolist? OA, 30 OB, 14 OC. 25 O D. 19
Use the graph below for the following three questions: On 14 12 10 oc Units of capital, K A G B 4 102 2 1Q1 10 20 30 GO 70 80 40 50 Units ollabor, The graph shows units of labor (labeled L) on the horizontal axis, and units of capital (labeled K) on the vertical axis. A budget line intersects the vertical/capital axis at 10 units, and the horizontal/labor axis at 80 units. Two isoquants are drawn: the first...
A firm with a cost of capital of 13 percent is evaluating three capital projects. The internal rates of return are as folows: Internal Rate Project of Return 1 12% 2 11% 315% The firm should O A. accept Project 1 and reject Projects 2 and 3 OB. accept Project 2 and reject Projects 1 and 3 OC. accept Project 1 and 2 and reject Project 3 OD. accept Project 3, and reject Projects 1 and 2
Q TC 10 $12 15 $30 20 $10 25 $128 30 35 $13 $11 $9 $8 $68 $208 $8 $308 Rofer to the above table. Given the demand and cost schedules, what are the maximized economic profits for this monopolist? OA. $122 OB. S220 OC. $152 OD, $150
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