Blog

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?

Few firms in the United States are monopolies because

Under which of the following is consumer surplus zero?

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.What is the Nash equilibrium in this game?