homework 3 part 1 - Percentage 100 1 SCENARIO B Suppose that due to favorable economic conditions the price that this firm can sell its product for

# homework 3 part 1 - Percentage 100 1 SCENARIO B Suppose...

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Percentage 100% 1. SCENARIO B: Suppose that due to favorable economic conditions, the price that this firm can sell its product for rises to \$22. For question 1. Fill in Table B - Each box is worth ½ point for a total of 9 points for Table B TABLE B- The wage is still \$150 and the price of output (Q) is now \$22. L Q MP L MRP Marginal Profit Total Profit 0 0 ---- ---- ------------- 0 1 8 8 \$ \$ \$ 2 20 12 \$ \$ \$ 3 28 8 \$ \$ \$ 4 35 7 \$ \$ \$ 5 41 6 \$ \$ \$ 6 45 4 \$ \$ \$ Table for Individual Question Feedback Points Earned: 9.0/9.0 Correct Answer(s): Box 1: 176; Box 2: 26; Box 3: 26; Box 4: 264; Box 5: 114; Box 6: 140; Box 7: 176; Box 8: 26; Box 9: 166; Box 10: 154; Box 11: 4; Box 12: 170; 176 26 26 264 114 140 176 26 166 154 4 170 132 -18 152 88 -62 90
Box 13: 132; Box 14: -18; Box 15: 152; Box 16: 88; Box 17: -62; Box 18: 90 2. Use Scenario B/Table B to answer the questions 2 – 4 below. (3 points) The profit maximizing output (Q) is . Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): 35 3. (3 points) The profit maximizing level of labor (L) input is workers. Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): 4 4.