Question 2 of 5 Y 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 l total income per day. Consider the figure above and suppose the person has 7 hours per day to divide between labour and non-labour activities. A. If non-labour income is $0.50 per day, this individual will choose hours of work and will have $ hours instead and enjoy hours of leisure. Their income from labour will be $ B. If non-labour income increases to $2, they will work C. Comparing parts A and B above, the income elasticity of this person's labour is equal to hours of leisure. Their total income per day will now be $ (round to two decimal places) which is (elastic/inelastic). Now (ignoring the figure above) suppose aggregate labour supply is measured as aggregate number of hours worked (L) given wage (w). A. Graph the labour supply if L=5w. The (total) elasticity of labour supply is B. Graph the labour supply if L. = 14w. The (total) clasticity of labour supply is per day and they Use Exhibit to answer question Price Pat- Pst MC ATC Pat P B C D . MR 0 Quantity The profit earned by the profit-maximizing monopolist is represented by the area Oa. P4ABP2. b. P4ACP1. c. P4AQ10. d. P3DQ20. e. None of the above is correct.
Question 2 of 5 Y 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 l total income per day. Consider the figure above and suppose the person has 7 hours per day to divide between labour and non-labour activities. A. If non-labour income is $0.50 per day, this individual will choose hours of work and will have $ hours instead and enjoy hours of leisure. Their income from labour will be $ B. If non-labour income increases to $2, they will work C. Comparing parts A and B above, the income elasticity of this person's labour is equal to hours of leisure. Their total income per day will now be $ (round to two decimal places) which is (elastic/inelastic). Now (ignoring the figure above) suppose aggregate labour supply is measured as aggregate number of hours worked (L) given wage (w). A. Graph the labour supply if L=5w. The (total) elasticity of labour supply is B. Graph the labour supply if L. = 14w. The (total) clasticity of labour supply is per day and they Use Exhibit to answer question Price Pat- Pst MC ATC Pat P B C D . MR 0 Quantity The profit earned by the profit-maximizing monopolist is represented by the area Oa. P4ABP2. b. P4ACP1. c. P4AQ10. d. P3DQ20. e. None of the above is correct.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 22RQ: When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price...
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Question 1-
Question 2-
Transcribed Image Text:Question 2 of 5
Y
10
9
8
7
6
5
4
3
2
1
0
0
1 2
3
4 5 6 7 8 9
10
l
total income per day.
Consider the figure above and suppose the person has 7 hours per day to divide between labour and non-labour activities.
A. If non-labour income is $0.50 per day, this individual will choose
hours of work and
will have $
hours instead and enjoy
hours of leisure. Their income from labour will be $
B. If non-labour income increases to $2, they will work
C. Comparing parts A and B above, the income elasticity of this person's labour is equal to
hours of leisure. Their total income per day will now be $
(round to two decimal places) which is
(elastic/inelastic).
Now (ignoring the figure above) suppose aggregate labour supply is measured as aggregate number of hours worked (L) given wage (w).
A. Graph the labour supply if L=5w. The (total) elasticity of labour supply is
B. Graph the labour supply if L. = 14w. The (total) clasticity of labour supply is
per day and they
Transcribed Image Text:Use Exhibit to answer question
Price
Pat-
Pst
MC
ATC
Pat
P
B
C
D
.
MR
0
Quantity
The profit earned by the profit-maximizing monopolist is represented by the area
Oa. P4ABP2.
b. P4ACP1.
c. P4AQ10.
d. P3DQ20.
e. None of the above is correct.
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