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An increase in the preference for leisure
Immigration
An increase in worker productivity
The demand for the good produced decreases.
The demand for the good produced increases.
4
20
40
60
80
Wages decrease, employment decreases
Wages increase, employment decreases
Wages decrease, employment increases
Wages increase, employment increases
Neither wages nor employment are affected.
0
1 40
2 50
3 70
4 80
A firm produces and sells good X for $5 per unit. The above table shows the firm’s various amounts of labor and the marginal revenue product of labor. What is the marginal product of the third worker?
8 units
10 units
12 units
14 units
16 units
Wage increase, quantity increase
Wage increase, quantity decrease
Wage decrease, quantity decrease
Wage decrease, quantity increase
Indeterminate wage change, quantity decrease
10P + 3Q = 60 and
P = Q – 0.5
Further, the professor claims that the average cost of Hostel operators is
If the hostel operators decide to maximize sales revenue instead of profit, show how this will affect consumer’s surplus. What is the producer’s surplus under pure competition at the equilibrium point?
Consider a consumer who is choosing how many of two goods to buy: Footballs and cricket balls. The consumer has an income of $20, and the cost of a football is $4 and a cricket ball is $2. (a) Write down the equation for the consumer’s budget constraint and graph it.(b) The government decides that football is evil and needs to be taxed. They introduce a 50% tax on each football sold. Rewrite and re-graph the budget constraint.(c) A new government is elected that hates all sports. They now tax both footballs and cricket balls at 50%. What does the budget constraint look like now?
Suppose a consumer’s utility function is given a U = 100X0.25Y0.75.The prices of the two commodities X and Y are Birr 2 and Birr 5 per unit respectively. If the consumer’s income is Birr 280, how many units of each commodity should the consumer buy to maximize his/her utility?
A typical profit-maximizing firm in a perfectly competitive constant-cost industry is earning a positive economic profit. a. Is the market price greater than, less than, or equal to the firm’s price? Explain. b. Draw correctly labeled side-by-side graphs for both the market and a typical firm and show each of the following. i. Market price and quantity, labeled Pm and Qm and the firm’s quantity, labeled Qf. ii. The firm’s average revenue curve, labeled AR and the firm’s average total cost curve, labeled ATC. iii. The area representing total cost, shaded completely. If one firm in the market were to raise its price, what will happen to its total revenue? Explain.
#331389 on Nov 2022