September 2023 Scenario 1 25 points total Suppose that due to favorable economic conditions the
2024 Scenario #1 Assignment Help
Scenario 1 25 points total Suppose that due to favorable economic conditions the 2023
Scenario # 1: (25 points total). Suppose that due to favorable economic conditions, the price that this firm can sell its… [Pin It] Scenario # 1: (25 points total). Suppose that due to favorable economic conditions, the price that this firm can sell its product for rises to $22. Fill in the following table. Solve for the new profit maximizing output and profit (5 points). TABLE 2 L Q MPL MRP Marginal Profit Total Profit 0 0 – – – 0 1 8 2 20 3 28 4 35 5 41 6 45 The current wage is $150 and the price of output (Q) = $22. a. (5 points for i through iii) i. The profit maximizing output is _______. ii. The profit maximizing level of labor input is ________ workers. iii. The maximum profit for this firm is __________. b. Locate this change in conditions as point B on the production function you drew in part 1b above. c. (10 points for correct and completely labeled diagram with points A, B, C, and D) Now construct a supply curve as we did in lecture with point A representing the original price – output combination and point B representing the price – output combination after the change in economic conditions (after price rises to $22).[2] Make sure you label the graph completely including what we hold constant along the supply curve. Note, you will be adding points C and D to this diagram. Given the cha
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