Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information, what is the total cost of production when the firm hires 7 workers?

Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced?

Suppose that an increase in the price of melons from $1.30 to $1.80 per pound increases the quantity of melons that melon farmers produce from 1.2 million pounds to 1.6 million pounds. Using the midpoint method, what is the approximate value of the price elasticity of supply?

Figure 14-1Suppose that a firm in a competitive market has the following cost curves: Refer to Figure 14-1. If the market price is $6.30, the firm will earn

Figure 15-4 Refer to Figure 15-4. Profit will be maximized by charging a price equal to

If a tax is levied on the buyers of dog food, then

Figure 15-5 Refer to Figure 15-5. A profit-maximizing monopoly’s total cost is equal to

Which of the following goods is rival and excludable?

When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent

Refer to Figure 15-7. In order to maximize profits, the monopolist should charge a price of