Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Suppose the output (q) produced by different amounts of labour (L) hired by a firm is given below:
(a) Calculate the marginal and average product labour levels from 1 to 6 (show your full calculations for L = 4). Graph the marginal and average products of labour. {Hint: Marginal numbers are often plotted halfway between levels since they apply to the move between these two levels (they are not a measurement at a level). This proves somewhat complicated later on, so just graph the marginal number at the “end” level, eg. plot MP for the first unit of labour at L = 1 instead of L = ½.)
(b) Assume the firm has fixed costs equal to $300 and that each unit of labour costs $150. For each of the 7 possible output levels calculate fixed cost (FC), variable cost (VC), and total cost (TC). Show your full calculations for the output level q =120. Graph the FC, VC, and TC curves.
(c) At each of the possible (positive) output levels calculate average variable cost (AVC), average total cost (ATC), and marginal cost (MC). Show your full calculations for the output level q =120. In a new diagram, graph these values. [Hints: (i) If X additional units cost Y additional dollars, then the appropriate MC number is Y/X. (ii) Graph MC numbers at the “end” output level.]
(d) Suppose this firm operates in a perfectly competitive market. How many units will the firm produce when the market price is: (i) $3.75, (ii) $5.00, (iii) $7.50, (iv) $15.00, per unit of output? [4] Over for parts (e) and (f)…… (e) Suppose there are 50 identical firms operating in this market and that market demand schedule is given by:
What are the short-run equilibrium price and quantity in the market? Is this a long-run equilibrium situation? Explain.
(f) Assume that the short-run cost curves are drawn for the long-run efficient plant size. What are the long-run equilibrium price and quantity in the market? What is the long-run equilibrium number of firms in the industry? Explain.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more