The table below gives the production schedule of caramel candy popcorn at different levels of labor. Consider the table and an hourly wage paid to workers of $11. Popcorn data Labor (workers) Popcorn (bags per hour) MPL VMPL 0 0 1 12 12 18 2 23 11 16.5 3 33 10 15 4 40 7 10.5 5 45 5 7.5 How many workers should the firm hire if its goal is to maximize profits?
Read DetailsThe figure shows the market for potato chips. Suppose the government introduces a price control at 70 cents per bag. Alt Text: market for chips Is this a price floor or price ceiling? Why do you think the government decided to set this price control?
Read DetailsThe figure shows the market for a winter jackets. Alt Text: winter jackets What is the initial equilibrium price [price] and quantity [quantity] of jackets? Suppose the government imposes a price control at $100 per jacket. How many jackets are purchased after the price control is imposed? [pricecontrol] Will there be a shortage or surplus after the price control? [impact]
Read DetailsThe figure shows the market for sports drinks. Consider this statement: “If the price falls from $3 to $1 per bottle, quantity demanded changes from 10 to 25 bottles.” Which of the following states the same idea? Alt Text: sport drink
Read DetailsThe table below shows the supply and demand schedules for the market for bottles of a prescription drug. Data table Price ($ per bottle ) Quantity Demanded Quantity Supplied 6 32 18 7 26 26 8 20 34 9 14 42 10 8 50 The initial market equilibrium is [price] and [quantity] bottles of the prescription drug. At what price(s) would there be a surplus in the market for the prescription drug? [surplus].
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