HW3 Results - Submitted by Drummond Craig(CHD5082 on 3:45:35 PM Points Awarded 97.75 Points Missed 2.25 Percentage 97.8 1 SCENARIO B Suppose that due to

# HW3 Results - Submitted by Drummond Craig(CHD5082 on...

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Submitted by Drummond, Craig (CHD5082) on 2/10/2017 3:45:35 PM Points Awarded 97.75 Points Missed 2.25 Percentage 97.8% 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 BTABLE 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
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 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. (3 points) The maximum profit for this firm is . Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): 170 5. DOWNLOAD AND PRINT GRAPHING TEMPLATE (available in the homework 3 instructions). This template already shows the outcome from scenario A. You will be adding results from scenario B to these graphs. (2 points) Using Scenario B/Table B, go to Graph 1 . Label the new profit maximizing Q and L combination on the production function as point B. Table for Individual Question Feedback Points Earned: 2.0/2.0 Correct Answer(s):
6. (3 points) Using Scenario B/Table B, go to Graph 2 and draw this firm’s newMRP 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 Feedback Points Earned: 3.0/3.0
7. (3 points) Using Scenario B/Table B, draw this firm’s Supply curve on Graph 3. You should construct a supply curve 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 and output combination after the change in economic conditions in Scenario B (price rose to \$22, and the profit maximizing Q youfound in your answer for #2 above). Connect the two points and label your supply curve.
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