# Box 17

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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;22.Use Scenario D/Table D to answer the questions 22 – 24 below.(3 points) The profit maximizing output is .Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):5151
23.(3 points) The profit maximizing level of labor input is workers.Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):524.(3 points) The maximum profit for this firm is .Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):27025.(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.Table for Individual Question FeedbackPoints Earned:3.0/3.05270
Correct Answer(s):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 FeedbackPoints 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.Table for Individual Question FeedbackPoints Earned:3.0/3.0
Correct Answer(s):28.(2 points) When comparing Scenario A to Scenario D, the firm now hires _______ workers.Table for Individual Question FeedbackPoints Earned:2.0/2.0Correct Answer(s):A29.(2 points) When comparing Scenario A to Scenario D, the firm now produces _____ output.Table for Individual Question FeedbackPoints Earned:2.0/2.0Correct Answer(s):A30.
(2 points) When comparing Scenario A to Scenario D, the firm now earns _______ profit.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.Table for Individual Question FeedbackPoints Earned:2.0/2.0Correct Answer(s):A31.Upload the completed graphing template here.Homework 3 - Feb 13 2017 - 12-03 AM.pdfHomework 3 - Feb 17 2017 - 9-58 PM.pdfTable for Individual Question FeedbackPoints Earned:0.0/0.0