Question is based on the chart below for a firm that is perfectly competitive in both the labor and product markets, showing how much daily output a firm can produce using different numbers of workers. Table: Perfectly Competitive Firm Number of Workers Output 1 3 2 9 3 16 4 21 5 23 6 24 If output sells for $20 per unit, what is the marginal revenue product of the fifth worker?

The surgeon general has determined that smoking causes cancer and heart disease for both smokers and passive smokers, nonsmokers who breathe smoke-filled air. If cigarette prices are determined in a free market, which of the following will be true?

The figure presents a graph in the first quadrant of a coordinate plane. The horizontal axis is labeled Quantity, in units, and the numbers 0 through 400, in increments of 100, are indicated. Vertical grid lines emanate upward from the values 100 and 200 on the horizontal axis. The vertical axis is labeled Price, in U S dollars, and the numbers 2 through 12, in increments of 2, are indicated. Horizontal grid lines emanate to the right from the values 4, 6, and 8 on the vertical axis. The graph has two curves that are labeled Demand and Supply. The Demand curve begins at 10 on the vertical axis, and moves downward and to the right in a straight line. It passes through the points with coordinates 100 comma 8 and 200 comma 6, and ends approximately at the coordinates 400 comma 2. The Supply curve begins at 2 on the vertical axis, and moves upward and to the right in a straight line. It passes through the point with coordinates 100 comma 4, intersects the Demand curve at the coordinates 200 comma 6, and ends approximately at the coordinates 400 comma 10. There are three unlabeled points indicated on the graph. The first point is located on the Demand curve at the coordinates 100 comma 8. The second point is located on the Supply curve at the coordinates 100 comma 4. The third point in located at the intersection of the Demand and Supply curves at the coordinates 200 comma 6. Assume that the government imposes a $4 per-unit tax on sellers of a good in the market described by the graph above.What are the price paid by buyers, the after-tax price received by sellers, and the deadweight loss?

The figure shows a graph whose horizontal axis is labeled Number of Workers and the vertical axis is labeled Wage Rate in dollars. The intersection of the horizontal and vertical axis is zero. Three numbers appear on the horizontal axis and are, from left to right, five, ten, and fourteen. Five numbers appear on the vertical axis, and are, from bottom to top, ten, twenty, twenty four, thirty, and thirty seven point five. The graph has 3 lines. One line slopes down and to the right and is labeled Demand. It begins slightly to the right of the vertical axis and above the wage rate of thirty seven point five dollars. The line passes through the coordinates five workers and thirty seven point five dollars, then intersects the line labeled Marginal Factor Cost at coordinates ten workers and thirty dollars. The Demand line continues on and intersects the line labeled Supply at coordinates fourteen workers and twenty four dollars. It ends above the horizontal axis and far to the right of fourteen workers. An upward sloping line labeled Marginal Factor Cost begins on the vertical axis at a wage rate of ten dollars and moves up and to the right. The line passes through coordinates, five workers and twenty dollars, then intersects with the downward-sloping Demand line at coordinates ten workers and thirty dollars, and continues on through coordinates fourteen workers and thirty seven point five dollars. An upward sloping line labeled Supply also begins at the same point on the vertical axis at a wage rate of ten dollars. The Supply line moves up and to the right, but it remains under the Marginal Factor Cost line, increasing in distance from that line as it moves right. The line moves through coordinates ten workers and twenty dollars, then intersects the downward-sloping Demand line at coordinates fourteen workers and twenty four dollars and continues on. The graph above shows the conditions that a monopsonist faces in a labor market. How many workers would this monopsonist hire and what wage rate would it pay?

The marginal revenue product of labor is the

Downtown Tech Company and Uptown Tech Company compete in the gaming console market. Downtown Tech Company is deciding whether to charge a high price or a low price for its product. Uptown Tech Company is deciding whether to invest in research and development or advertising. Each company’s profit depends on the actions taken by the other firm, which are listed in the payoff matrix provided. The first entry in the matrix is Downtown Tech Company’s profit, and the second is Uptown Tech Company’s profit. Each firm independently and simultaneously selects an action. Each firm knows all of the information about the payoffs associated with the strategies each firm can choose. Table: Downtown Tech Company and Uptown Tech Company Profits Matrix Uptown Tech Co. Downtown Tech Co. Research and Development Advertising High Price $500, $250 $100, $700 Low Price $200, $400 $600, $350 The Nash equilibrium to this game, if one exists, is which of the following?

A monopolistically competitive firm advertises in order to

Hayden’s Hamster Store faces the costs listed in the following table. Hayden sells her hamsters in a market with an upward sloping supply curve and downward sloping demand curve at a price of $80 per hamster. The total fixed cost is $300. Table: Hayden’s Hamster Store Costs Quantity Total Variable Cost 1 $30 2 $70 3 $120 4 $180 5 $250 6 $340 7 $435 8 $535 9 $645 10 $760 Use the information in the table to answer questions a-h. Identify the profit maximizing quantity of hamsters. Explain your answer using marginal analysis. (3 points) Calculate the economic profit when producing the profit maximizing quantity you identified in part (a). Show your work. (3 points) Based on your answer in part (b), will the number of firms increase, decrease, or stay the same in the long run? Explain your answer. (2 points) Based on your answer in part (b), will the market price increase, decrease, or stay the same in the long run? Explain your answer. (2 points) Calculate the average fixed cost of producing 4 units. Show your work. (2 points) The income elasticity for hamsters is -1.5 and the cross price elasticity of demand for Good X with respect to hamsters is -0.5. Based on your answer to part (d) above, what will happen to the demand for Good X? Explain your answer. (3 points) Now suppose the government places a price floor on hamsters at a price of $70. Will deadweight loss in the market for hamsters increase, decrease, or stay the same in the short run as a result of the price floor? Explain. (3 points) Assume the government raises property taxes (a fixed cost) on Hayden’s Hamster Store. Will the profit maximizing quantity of hamsters increase, decrease, or stay the same in the short run? Explain. (2 points)

In a market with two firms, a firm that has a dominant strategy will do which of the following?

Economic profit can be calculated as accounting profit minus which of the following?