Complete the table below to answer questions 39. and 40. $2.00 2.50 3.00 3.50 4.

Question

Complete the table below to answer questions 39. and 40. $2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 $18 16 14 12 10 $0 $16 28 0 $16 12 2 7 8 What is the profit-maximizing number of units to produce? a. 2 b. 4 c. 6 d. 8 40 What is the profit-maximizing price? a. $14 b. $10 C. $6 d. $4 41. 1. Wage rates in different labor markets differ because: a. there are differences in workers' MRP b. rareness of skills required c. relocation costs d. All of the above Payment to a factor in excess of opportunity costs: a. is economic rent b. is very unusual c. Both of the above d. Neither of the above 42.

Explanation / Answer

Ans:

Marginal Revenue is the additional revenue obtained from sale of an additional unit.

Total revenue = Quantity * Price

Table

39) Option B - 4 units

The profit maximizing level of output is where marginal revenue is equal to marginal cost.In this case profit maximizing level of output is 4 units and the price is $10

40) Option B - $10

The profit maximizing level of output is where marginal revenue is equal to marginal cost.In this case profit maximizing level of output is 4 units and the price is $10.

41) Option D

All of the above

The all the above factors are responsible for different wage rates in different labor markets.

42) Option A

is economic rent

economic rent is a payment made for the factors of production in excess of opportunity cost.

Price Quantity Total Revenue Marginal revenue Marginal cost 18 0 0 0 2 16 1 16 16 2.5 14 2 28 12 3 12 3 36 8 3.5 10 4 40 4 4 8 5 40 0 4.5 6 6 36 -4 5 4 7 28 -8 5.5 2 8 16 -12 6

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.