nts per question)1a0od it produces is constant, than itNAME:NT A QUIZABC Limited sells its product in a perfectly competitive market for a price of $151.perunit and hires workers at a daily wage of $75. Labor is the only factor cost, and the firm iscurrently earning profits. If ABC hires one more worker and output increases by 5 unitsperday, the firm's profits willa. decrease by $5b. decrease by $75c. increase by $75d. increase by $15e. remain unchanged.

The correct answer to the above-mentioned question is option (e).

Answered: nts per question) 1a0od it produces is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume coffee machine and labor are the only two inputs for a coffee shop. The labor demand elasticity will be larger if A. Coffee machine is the substitute for labor in the shop. in the short run. B. Coffee has a relative inelastic demand C. Labor cost is around 80% in the total cost of the shop. D. The supply of tea machine is quite elastic.
MC Price (Rials per anit) ATC 1012 15 16 IS 16 Quantity (units) 17. In the above figure, at a price of RO 5, the firm's output would be and it would units e 12; incur an economic kss b. 5: shutdowr 16; breakeven d. 12; brsakeven c.
Tire Co. has total fixed costs of $1000 per month. The firm's variable cost is $800 for 10 tires. At that level of output, the firm's average variable costs equal: A. S80 B. S180 C. $100 D. 5120
The short run is a period of time in which: The quantities of some resources (inputs) are fixed. The amount of output is fixed. Prices and wages are fixed. O Nothing the firm does can be altered.
Question 4 For a firm, the production function represents the relationship between OOO implicit costs and explicit costs. quantity of inputs and total cost. quantity of inputs and quantity of output. quantity of output and total cost. iz Instructions Question 5 Grace is a self-employed artist. She can make 20 pieces of pottery per week. She is considering hiring her sister Kate to work for her. Both she and Kate can make 35 pieces of pottery per week. What is Kate's marginal product? O 15 pieces of pottery O22.5 pieces of pottery O 35 pieces of pottery O 55 pieces of pottery
The table above shows the short-run output for a perfectly competitive firm. If the price of the product is $10, what is the marginal revenue product of the thirdworker hired?a. $24b. $27c. $40d. $240e. $300 I need help with the work and formulas to use.
Solve all questions compulsory..
Marginal Total Marginal Cost RevenueRevenue Quantity Variable Price costs PER UNIT $0.00 $5,3 --- --- 1 $5.50 $5,3 $6.00 $5,3 3 $6.50 $5,3 4 $7.00 $5,3 5 $7.50 $5,3 $8.00 $5,3 The fixed costs are $70. Calculate the marginal costs if the current level of production is 3 units and the producer decides to increase its output by 1 unit. Show your answer with a number only. The number must have 2 digits after the decimal point.
ATC $70 $60 $50 DIMR $40 $30 $20 $10 0 60 100 160 200 260 300 360 400 Output If the price were $60, this firm would the long run. in the short run and in O operate; go out of business O shut down; go out of business O shut down; stay in business O operate; stay in business
a) Fill in the empty cells in the table. You have been also given following additional info- Price = $ 10 Wage = $ 1500 Labor (L) Output (q) Marginal Product of Labor Value of the marginal product of labor: Wage Marginal profit 0 0 1 400 2 720 3 960 4 1020 b) When the company should stop hiring Workers. Explain
Consider a small business that makes pastries. The business has rented a building to be used as its factory and shop floor. The rent of the building is $2,000 per week. The rest of the firm's weekly costs are as follows: ●Income lost from alternative employment - $2,000 ●Explicit variable costs - $1,500 ●Implicit variable costs - $ 500 i. If the firm sells 1,000 pastries per week, at $6 per pastry, calculate the firm's weekly ●Accounting profit, and ●Economic profit ii. Based on your answer to part b. i. above, should the firm continue to operate? Why or why not? iii. Assume that the firm continues at the current output level of 1,000 pastries per week while the prices start to fall. The firm should consider 'shut-down' if the price falls below what dollar value? Explain using relevant calculations and concepts
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