Homework HELP ME Please.
1.Profit is equal to revenue minus cost, where revenue equals price times quantity of output,
while cost equals the wage rate times employment (assuming wages are the only cost of production). Assume that, on average, each firm produces 100 units of output a day, employs 90 workers, and pays a wage of $100 a day.
a) As the price of output rises from $80 to $90, $100, $110, and $120, show how the profitability of firms changes.
b) At which of these price levels will firms have an incentive to raise or lower output?
c) From these observations, construct an aggregate supply curve.
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2) The following Table shows the technology of production at Happy Farms for 2001. a) Complete...
2) The following Table shows the technology of production at Happy Farms for 2001. a) Complete the Table by calculating MPL and MRPL (assume potatoes sell for $2 per bushel) Workers Total Bushels of Marginal rginal Potatoes per day Product of Labor Product of Labor p- $2 40 70 90 100 105 102 b) If the wage rate is S30 per day, how many workers should be hired per day? Explain your answer. c) If workers unionized, and the wage...
please help me with the graph and how many workers. thank youu 1. Graphing demand for...
please help me with the graph and how many workers. thank youu
1. Graphing demand for labour and computing the optimal quantity A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage (marginal resource cost) of $270 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labour (MRP) at each quantity of workers. Labour (Number of...
A firm has the following total costs, where Q is output and TC is total cost:...
A firm has the following total costs, where Q is output and TC is total cost: Q TC 0 $ 100 1 110 2 130 3 160 4 200 5 250 6 310 7 380 8 460 9 550 10 650 11 760 Say the firm is in a perfectly competitive market. If the current market (equilibrium) price is $ 70, at what output level will the firm as a profit maximizer produce at? Say the market price rises to...
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Suppose that workers and firms perfectly forecast inflation, so that the real wage remains unchanged as...
Suppose that workers and firms perfectly forecast inflation, so that the real wage remains unchanged as the price level rises over time. Prices and wages rise at the same rate, which implies that the real wage stays constant. The following graph shows the aggregate demand curve (AD) in an economy in long-run equilibrium. Assume the natural rate of unemployment is 6%, and potential output is $50 trillion. Use the orange points (square symbol) to draw the aggregate supply curve in...
please please help me! one long problem and some vocab (For this question you have 20...
please please help me! one long problem and some vocab
(For this question you have 20 attempts) Throughout this problem assume that for an industry aggregate demand is given by: QP) - 900 - 50p Also, each firm in the industry has a production function of f(k)= Vik. Each firm has a short run capital stock of 100 units and r6. Initially, we 2. a. Find the firm's short run cost function in the first box put the variable costs...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to t...
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Consider the information in the file named HW2 - Production Data for the Economy. The file...
Consider the information in the file named HW2 - Production Data
for the Economy. The file shows a part of the marginal-product
function for a firm. The firm hires more that 90 workers.
Therefore, the file begins with the 91st worker to save space. The
first 90 workers are already producing a total of 10,530 units of
output. There are 100 such firms in the economy. All the firms are
identical (to make our calculations less cumbersome).
Next, assume that...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538 5. Orange juice and apple juice are substitutes. Suppose bad weather sharply reduced the orange harvest. What would the impact be? a increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice b. increase consumer surplus in...
2) The following Table shows the technology of production at Happy Farms for 2001. a) Complete the Table by calculating MPL and MRPL (assume potatoes sell for $2 per bushel) Workers Total Bushels of Marginal rginal Potatoes per day Product of Labor Product of Labor p- $2 40 70 90 100 105 102 b) If the wage rate is S30 per day, how many workers should be hired per day? Explain your answer. c) If workers unionized, and the wage...
please help me with the graph and how many workers. thank youu
1. Graphing demand for labour and computing the optimal quantity A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage (marginal resource cost) of $270 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labour (MRP) at each quantity of workers. Labour (Number of...
5. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen. For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer...
Suppose that workers and firms perfectly forecast inflation, so that the real wage remains unchanged as the price level rises over time. Prices and wages rise at the same rate, which implies that the real wage stays constant. The following graph shows the aggregate demand curve (AD) in an economy in long-run equilibrium. Assume the natural rate of unemployment is 6%, and potential output is $50 trillion. Use the orange points (square symbol) to draw the aggregate supply curve in...
please please help me! one long problem and some vocab
(For this question you have 20 attempts) Throughout this problem assume that for an industry aggregate demand is given by: QP) - 900 - 50p Also, each firm in the industry has a production function of f(k)= Vik. Each firm has a short run capital stock of 100 units and r6. Initially, we 2. a. Find the firm's short run cost function in the first box put the variable costs...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to the The level of happiness among people is as high as possible. supplied quantity supp A price increase would cause people to want to buy 1 of the good. E. The supply curve and demand curve are equivalent. The Marginal Product of Labor (MPL) is equal to...
Consider the information in the file named HW2 - Production Data
for the Economy. The file shows a part of the marginal-product
function for a firm. The firm hires more that 90 workers.
Therefore, the file begins with the 91st worker to save space. The
first 90 workers are already producing a total of 10,530 units of
output. There are 100 such firms in the economy. All the firms are
identical (to make our calculations less cumbersome).
Next, assume that...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538 5. Orange juice and apple juice are substitutes. Suppose bad weather sharply reduced the orange harvest. What would the impact be? a increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice b. increase consumer surplus in...
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