Using scenario dtable d go to graph 3 and add this

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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
28. (2 points) When comparing Scenario A to Scenario D, the firm now hires _______ workers.
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29. (2 points) When comparing Scenario A to Scenario D, the firm now produces _____ output.
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30. (2 points) When comparing Scenario A to Scenario D, the firm now earns _______ profit. A) more B) less
Feedback:
note that the firm changes its behavior due to the increase in total factor productivity. The firm hires more workers and makes more output in order to maximize profit. Remember that profit maximization requires that workers be hired up to the point where W=MRP. Consider the situation if the firm stayed with only 3 workers. Given the change in MPL, at 3 workers the wage is 150 and the MRP is 200. So at 3 workers, WMRP for the 6th worker. Correct Answer(s):A
Table for Individual Question Feedback Points Earned: 2.0/2.0
31. Upload the completed graphing template here. ECON104 Homework 3 graphs.pdf Table for Individual Question Feedback Points Earned: 0.0/0.0 Continue

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