# Table for individual question feedback points earned

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Table for Individual Question FeedbackPoints Earned:3.0/3.0
8.(2 points) When comparing Scenario A to Scenario B, the firm now hires _______ workers.
Table for Individual Question FeedbackPoints Earned:2.0/2.0
9.(2 points) When comparing Scenario A to Scenario B, the firm now produces _____ output.
Table for Individual Question FeedbackPoints Earned:2.0/2.0
10.
(2 points) When comparing Scenario A to Scenario B, the firm now earns _______ profit.A) moreB) lessFeedback: Note that the firm changes its behavior due to the increase in output price. 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. Once the price of output rises to \$22, at 3 workers the wage is 150 and the MRP is 176. So at 3 workers, WMRP for the 5th worker.Table for Individual Question FeedbackPoints Earned:2.0/2.0Correct Answer(s):A11.SCENARIO C- We return to the original conditions (from scenario A) and now we let wages change. In particular, an increase in labor supply lowers the wagethat the firm needs to pay to \$130.For question 11. Fill in Table C- Each box is worth ½ point for a total of 6 points for Table CTABLE C- The wage has changed to \$130 but the price of output (Q) is back at its original value of \$20.L QMPLMRPMarginal ProfitTotal Profit0 0----------------------01 88\$160\$\$2 2012\$240\$\$3 288\$160\$\$4 357\$140\$\$5 416\$120\$\$6 454\$80\$\$Table for Individual Question FeedbackPoints Earned:6.0/6.0Correct Answer(s):30301101403017010180-10170-50120
Box 1: 30;Box 2: 30;Box 3: 110;Box 4: 140;Box 5: 30;Box 6: 170;Box 7: 10;Box 8: 180;Box 9: -10;Box 10: 170;Box 11: -50;Box 12: 12012.Use Scenario C/Table C to answer the questions 12 – 14 below.(3 points) The profit maximizing output is .Table for Individual Question FeedbackPoints Earned:3.0/3.0
13.(3 points) The profit maximizing level of labor input is workers.Table for Individual Question FeedbackPoints Earned:3.0/3.0
14.(3 points) The maximum profit for this firm is .Table for Individual Question FeedbackPoints Earned:3.0/3.0
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15.(2 points) Using Scenario C/Table C, go to Graph 1. Label the profit maximizing Q and L combination as point C.Table for Individual Question FeedbackPoints Earned:2.0/2.0Correct Answer(s):16.