3 points using scenario ctable c go to graph 4 and

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(3 points) Using Scenario C/Table C, go to Graph 4 and draw in this firm’s new wage line. The MRP curve is unchanged since MRP = P* MPL, and neither P nor MPL has changed. Shade in the new area for profit. Also label the profit maximizing point as letter C.Table for Individual Question FeedbackPoints Earned:3.0/3.0
Correct Answer(s):17.(3 points) Using Scenario C/Table C, go to graph 3 and add this firm’s new supply curve (remember that wagesfell, so output supply increases). Label as point C the price and output combination occurring after the change in economic conditions in Scenario C (P= $20, and the profit maximizing Q you found in your answer for #12 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 curve you drew earlier.Table for Individual Question FeedbackPoints Earned:3.0/3.0
18.(2 points) When comparing Scenario A to Scenario C, the firm now hires _______
Table for Individual Question FeedbackPoints Earned:2.0/2.0
19.(2 points) When comparing Scenario A to Scenario C, the firm now produces _____
Table for Individual Question FeedbackPoints Earned:2.0/2.0
20.(2 points) When comparing Scenario A to Scenario C, the firm now earns _______ profit.
A) moreB) lessFeedback: note that the firm changes its behavior due to the lowered wage. 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 wage falls to 130, at 3 workers the wage is 130 and the MRP is 160. So at 3 workers, WMRP for the 5th worker.Table for Individual Question FeedbackPoints Earned:2.0/2.0Correct Answer(s):A21.SCENARIO D - In this final scenario, we again return to our original conditions (from scenario A) and consider a positive productivity shock, just like we did in the lectures. In particular, let the MPLof each worker rise by two, due to an increase in total factor productivity(denoted A in the lecture), relative to the initial conditions.For question 21, fill in Table D. Each box is worth ½ point for a total of 15 points for Table DTABLE D- The wage is $150 and the price of output (Q) is $20.L QMPLMRPMarginal ProfitTotal Profit0 0---------------------01$$$2$$$3$$$4$$$5$$$6$$$Table for Individual Question FeedbackPoints Earned:15.0/15.0Correct Answer(s):1010200505024142801301803410200502304391803026051816010270576120-30240

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