SavedThe following table shows the production function for a bicycle manufacturer:Number of WorkersNumber of BicyclesMarginal ProductMarginal Revenue1327310$412213$1a) Suppose that the weekly wage is $700. What is the marginal labor cost of the second worker per week?$b) Suppose that the price of a bicycle is $460. What is the marginal revenue for each level of output? Instructions: Fill in the values forthe marginal revenue in the table above.c) How many workers does the bicycle manufacturer employ if the price per bicycle is $460 and the weekly wage is $700?workersd) If the price per bicycle drops to $300, what happens to the number of employed workers?The number of employed workers will (Click to select)Next>5 of 8< PrevT ee to searchASLSf12pausebreakf10f8f6f7f5f3f42&$4##3875PUYTREA2

(a)It is given that the weekly wage is $700; therefore, the marginal labor cost of the second worker…

Answered: Saved The following table shows the…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 3PA

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Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as the incumbent tries to bleak into the market by selling 4,000 units of output. Estimate from the graph what the new firms average cost of producing output would be. If the incumbent continues. to produce 6,000 units, how much output would the two films supply to the market? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn? Figure 9.2 Economics of Scale and Natural Monoploy
Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
The attached graph shows the demand curve for a new digital product that you developed, (It might be a game, a video that you produced, or something else). Since it is digital, it is essentially costless for you to replicate the product, so all of your production costs are fixed (and now sunk) and variable costs are zero. a.) What does the marginal revenue (MR) curve look like for this demand curve? Explain your answer by giving the vertical and horizontal intercepts of the MR curve b.) Given your answer, what price should you charge for your new product in order to maximize your profit? How much revenue would you collect? Briefly explain. C.) What would be the economically efficient price for your new product? Briefly explain. d.) What is the consumer surplus loss from charging your profit-maximizing price instead of the economically efficient price?
A manufacturer knows that: His TR is given by Revenue = 23Q – Q2 /4 His total cost of production is; Cost = 36 + 2Q + 0.1Q2 Where Q is the weekly production in thousands a) Economists define MR as the rate of change of Total revenue. Derive an expression for Marginal Revenue (MR) b) How do you think Economists’ would define ‘Marginal Cost’? Derive an expression for marginal Cost (MC) and at what output will make marginal Revenue equal Marginal cost? c) Find the total profit and the value of Q that maximizes profit
I need help with this problem for business calculus. The revenue given is R(x)=275(0.974)^2x+1 I have to find the marginal revenue when 150 computers are sold and interpret the answer in a sentence. I know that I have to find the Marginal revenue function and I think it's -14.48918*0.974^2x+1 but I'm not 100% sure. I also need some clarification if I need to plug 150 into x to get the marginal revenue for 150 computers sold. Please help, thank you!
1. Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs ofproduction. Cost of capital is R50 000, labour cost is R30 000, and the total cost the firm is willing to pay is R300,000. Identify the type of this production function and Illustrate it with a 2D graph. 2. If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market with a price of P for smartphones, compute the number of phones that would be bought and sold at equilibrium.
Faye is an entrepreneur considering whether to enter the market for providing websites to universities offering online learning. The market is currently perfectly competitive, and the market-clearing price is $10,000 per client. Her marginal cost is given by the equation MC = 200Q. a. In this market, what is Faye’s marginal revenue function? b. If Faye enters the market, how many website clients will she have, and what will her profit be? You can assume no fixed cost. Now imagine Faye asks you for advice. She knows you have just taken this course, and you learned about market power. c. Explain two ways Faye can achieve greater market power in this market. Faye takes your advice, and she is now the monopolist in a new market, where the demand curve is given by Q = 300,000 – 1,000P d. What is Faye’s new marginal revenue curve? e. In this new market, how clients will she have, and at what price will she sell her services? Now imagine you see all the profits Faye is making and you decide…
17.Mr.Ying is starting a telephone company. The marginal cost for each cell phone is given by the equation C(x) = 0.01x^2 − 3x + 229. x is the number of cell phones manufactured and sold. The marginal revenue function is R(x) = 429 − 2x. Both C(x) and R(x) are given in dollars. part a) Where do these curves intersect? What do those intersection mean? part b) Find the area between the curves, using end points that are reasonable. Round to the nearest cent. part c) What does the area under the curve mean in this scenario?
The following data refers to the revenue and costs (in million rupees) of a firm. Output (units) 0 1 2 3 4 5 6 7 8 Total revenue - 0 50 100 150 200 250 300 350 400 Total costs 110 140 162 175 180 185 194 219 269 (a) Briefly explain the concept of fixed costs with reference to the above data. (b) Determine the marginal revenue at each level of output and interpret the results. (c) What level of output will the firm aim to produce and what would be the amount of profit that the firm will make at this level?
Firms can choose a location in the linear city of length 1 with fixed cost of 25. Consumer density at any location x in the linear city is 400. a) Show that a firm each at 0.125, 0.375, 0.625 and 0. 875 is not an equilibrium. b) What is the equilibrium number of firms and th6ir locations? c) Illustrate how entry is no longer profitable at equilibrium? Plz do fast
You are currently in a job as a chef in a restaurant earning $100,000 per year. You are considering opening up a restaurant in a building which you currently own. You estimate that, if you wanted to, you could rent out your building for $25,000 per year to another restaurant. Last year, your revenues and expenses from the restaurant were the following: Revenues $400,000Cost of Food $120,000Salaries/Wages $100,000Utilities $25,000Taxes $20,000 What is your accounting profit? Show your calculations What is your economic profit? Show your calculations Assuming that you are indifferent between being a chef or owning a restaurant, should you open up your restaurant? Explain why. Now suppose that instead of owning the building where your restaurant will be located, you had to pay rent of $25,000 per year for the building. Will your answers to parts 1-3 change? Show your calculations. Explain how and why your answers will change or…
14. A Sixteen Tons Question: A coal mine in a small town is a monopsony with a supply of labor function given by w = 4L. Its production function is given by Q = ½L. The coal it produces is sold in a PC market at a price of $32. A) What is this monopsony’s MFC function? B) How much labor will the mine hire and what will be the wage?

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