Please give a neat and step-by-step solution. Question:TC = 500 + WL ( where TC is the Total Cost, 500 is the Fixed Cost, W is the wage and L is the Labor).What will be MC (Marginal Cost) if Q (Quantity / Output) from Q* (Quantity at Market Price) to 1.2Q*, given the workers' number increased from 5 to 8, however, wage rate remains the same at W=10.What will be the marginal productivity?If the market becomes a monopoly, what will happen to the market price, market quantity, and social welfare?

Total Cost (TC) includes both Fixed Costs (500 in this case) and Variable Costs (WL, where W is the…

Answered: TC = 500 + WL ( where TC is the Total…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Labor Markets

Section: Chapter Questions

Problem 4SQ

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Please give a neat and step-by-step solution.

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TC = 500 + WL ( where TC is the Total Cost, 500 is the Fixed Cost, W is the wage and L is the Labor).

What will be MC (Marginal Cost) if Q (Quantity / Output) from Q* (Quantity at Market Price) to 1.2Q*, given the workers' number increased from 5 to 8, however, wage rate remains the same at W=10.
What will be the marginal productivity?
If the market becomes a monopoly, what will happen to the market price, market quantity, and social welfare?

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