PSU ECON 104 Homework 3 - Points Awarded 91.75 Points...

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Points Awarded91.75Points Missed8.25Percentage91.8%1.SCENARIO B:Suppose that due to favorable economic conditions, the price that this firm can sell its productfor rises to $22.For question 1. Fill in Table B - Each box is worth ½ point for a total of 9 points for Table BTABLE B- The wage is still $150 and the price of output (Q) is now $22.L QMPLMRPMarginal ProfitTotal Profit0 0---------------------1 88$176$26$2 20 12$264$114$1403 28 8$176$26$1664 35 7$154$4$1705 41 6$132$-18$1526 45 4$88$-62$90026Table for Individual Question FeedbackPoints Earned:9.0/9.0Correct 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;
Box 13: 132;Box 14: -18;Box 15: 152;Box 16: 88;Box 17: -62;Box 18: 902.Use Scenario B/Table B to answer the questions 24 below.(3 points) The profit maximizing output (Q) is35.Table for Individual Question FeedbackPoints Earned:3.0/3.0
3.(3 points) The profit maximizing level of labor (L) input is4workers.Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):44.(3 points) The maximum profit for this firm is170.Table for Individual Question FeedbackPoints Earned:3.0/3.0
5.DOWNLOAD AND PRINT GRAPHING TEMPLATE (available in the homework 3 instructions). Thistemplate already shows the outcome from scenario A. You will be adding results from scenario B tothese graphs.(2 points) Using Scenario B/Table B, go toGraph 1. Label the new profit maximizing Q and L combination onthe production function as point B.
Table for Individual Question FeedbackPoints Earned:2.0/2.0Correct Answer(s):6.(3 points) Using Scenario B/Table B, go toGraph 2and draw this firm’snew MRP curve (remember that MRP= P* MPL, and since price changed, we know we have a new MRP curve!). Shade in the new area of profit.Also label the new profit maximizing point as letter B.Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):7.
(3 points) Using Scenario B/Table B, draw this firm’s Supply curve onGraph 3. You should construct a supplycurve as we did in lecture with point A representing the original price and output combination from scenario A(original price was $20 combined with the profit maximizing Q of 28) and point B representing the price andoutput combination after the change in economic conditions in Scenario B (price rose to $22, and the profitmaximizing Q you found in your answer for #2 above). Connect the two points and label your supply curve.

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Term
Fall
Professor
staff
Tags
Macroeconomics, Correct Answer, Individual Question

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