1 / 5

Chapter 9 Supplemental Questions

Chapter 9 Supplemental Questions. Question 1. A. Calculate the total input cost and the marginal input cost. B. If the marginal value or marginal revenue products were 4, what would be the profit maximizing level of input?. MIC. 8. $/unit. 5. 3. 10 15

limei
Download Presentation

Chapter 9 Supplemental Questions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 9 Supplemental Questions

  2. Question 1. A. Calculate the total input cost and the marginal input cost. B. If the marginal value or marginal revenue products were 4, what would be the profit maximizing level of input?

  3. MIC 8 $/unit 5 3 10 15 Quantity per unit of time Question 2. A. Find the equilibrium price and quantity for a monopsonist in the graph below. B. Find the equilibrium price and quantity under perfect competition in the graph below. C. What is the magnitude of monopsonistic exploitation? Supply of Input MVP or MRP

  4. MC $/unit ATC MR D Quantity per unit of time Question 3. On the following graph, show the effect of a lump-sum tax on a monopolist.

  5. Question 4. Using the graph below, answer questions a through d. A. What are the profit-maximizing price and quantity levels for the monopolist? B. Calculate profit. C. Suppose the government imposes a price ceiling of $40. Now what is the optimal price and quantity combination? D. Calculate the new level of profit.

More Related