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When a certain monopoly sets its price at $8 it sells 64 units. When the monopoly sets its price at $10 it sells 60 units. The marginal revenue for the firm over this range is

The Figure shows the marginal revenue product (also called the value of the marginal product) for Cora’s Confections, a producer of hand-made cake pops. Suppose the market price of cake pops falls to $2. What happens to the curve given in the diagram?

Table 17-2Imagine a small town in which only two residents, Abby and Brad, own wells that produce safe drinking water. Each week Abby and Brad work together to decide how many gallons of water to pump. They bring water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Abby and Brad can pump as much water as they want without cost so that the marginal cost is zero. The weekly town demand schedule and total revenue schedule for water is shown in the table below: Quantity(in gallons) Price Total Revenue(and Total Profit) 0 $12 $0 1 $11 $11 2 $10 $20 3 $9 $27 4 $8 $32 5 $7 $35 6 $6 $36 7 $5 $35 8 $4 $32 9 $3 $27 10 $2 $20 11 $1 $11 12 $0 $0 Refer to Table 17-2. Suppose that Abby and Brad work together to operate as a profit-maximizing monopolist. How many gallons of water will be produced and sold?

Table 18-4 Labor Output Marginal Productof Labor Value of MarginalProduct of Labor Wage MarginalProfit 0       0 — — — — 1   400 400 $1200 $800  $400 2   700 300 $  900 $800  $100 3   950 250 $  750 $800  -$50 4 1050 100 $  300 $800 -$500 Refer to Table 18-4. How many workers should the firm hire?

If the supply of labor decreases, then the equilibrium wage rate ________ and equilibrium employment ________.

Alpha and Beta are the only firms selling perogies in Pittsburgh. Each firm must decide on whether to offer a discount to students to compete for customers. If one firm offers a discount but the other does not, then the firm that offers the discount will increase its profit. The table shows the payoff matrix for this game. If Alpha assumes that Beta would offer a student discount, what should it do?

A monopolistically competitive industry that earns economic profits in the short run will            

A single-price monopoly can sell 10 units of its product at a price of $45 each but to sell 11 units, the monopoly must cut the price to $44. What is the marginal revenue of the extra unit sold?  

A perfectly competitive firm is producing 50 units of output and selling at the market price of $23. The firm’s average total cost is $20. What is the firm’s economic profit?    

Suppose OPEC has only two producers, country “S” and country “E”. Country “S” has far more oil reserves and is the lower-cost producer compared to country “E”. The payoff matrix the table shows the profits earned per day by each country. “Low output” corresponds to producing the OPEC assigned quota and “high output” corresponds to producing the maximum capacity beyond the assigned quota.Is there a dominant strategy for country “E” and, if so, what is it?