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Box 11: 34; Box 12: 10; Box 13: 200; Box 14: 50; Box 15: 230; Box 16: 43; Box 17: 9; Box 18: 180; Box 19: 30; Box 20: 260; Box 21: 51; Box 22: 8; Box 23: 160; Box 24: 10; Box 25: 270; Box 26: 57; Box 27: 6; Box 28: 120; Box 29: -30; Box 30: 240 22. Use Scenario D/Table D to answer the questions 22 24 below. (3 points) The profit maximizing output is 41 . Table for Individual Question Feedback Points Earned: 0.0/3.0 Correct Answer(s): 51
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23. (3 points) The profit maximizing level of labor input is 5 workers. Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): 5 24. (3 points) The maximum profit for this firm is 270 . Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): 270 25. (3 points) Using Scenario D/Table D, go to Graph 1. Draw your new production function (remember technology [total factor productivity] increased, shifting the production function!) Label the new profit maximizing Q and L combination as point D. Point D should be along the new PF (PF') at point (5,51) Table for Individual Question Feedback Points Earned: 2.2/3.0 Correct Answer(s):
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26. (3 points) Using Scenario D/Table D, go to Graph 5 and draw this firm’s new MRP curve (remember that MRP = P* MPL, and since MPL has 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 D. Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): 27. (3 points) Using Scenario D/Table D, go to Graph 3 and add this firm’s new supply curve (a positive productivity shock increases supply!). Label the price and output combination after the change in economic conditions in Scenario D (P= $20, and the profit maximizing Q you found in your answer for #22 above). You only have one point on this supply curve, but you can sketch it as an upward sloping supply curve that is parallel to the supply curves you drew earlier. Point D should be along the new supply curve (S'') at point (51,20) Lesson 5, video 5 Table for Individual Question Feedback Points Earned: 2.2/3.0
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Correct Answer(s): 28. (2 points) When comparing Scenario A to Scenario D, the firm now hires _______ workers. A) more B) fewer Table for Individual Question Feedback Points Earned: 2.0/2.0 Correct Answer(s): A 29. (2 points) When comparing Scenario A to Scenario D, the firm now produces _____ output. A) more B) less Table for Individual Question Feedback Points Earned: 2.0/2.0 Correct Answer(s): A 30. (2 points) When comparing Scenario A to Scenario D, the firm now earns _______ profit. A) more B) less Feedback:
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