homework Ch 11 to 13
The homework covers Ch 11~13. It must be your particular person work. For every query, please present the required derivation (if relevant) and highligh t the reply. Restrict your solutions inside 5 pages. No cowl sheet is required.Q1: CH 11 (30%)Take into account a price-taking agency that has complete fastened price of $50 and faces a market decided value of $2 per unit forits output. The wage fee is $10 per unit of labor, the one variable enter. Utilizing the next desk, reply thequestions beneath.(1) Items ofLabor (2)Output (three) MarginalProduct (four) MarginalRevenue Product (5)Marginal Price (6)Profit1 5 2 15 three 30 four 50 5 65 6 77 7 86 eight 94 9 98 10 96 a. Fill within the blanks in column three of the desk by computing the marginal product of labor for every stage of labor utilization.b. Fill within the blanks in column four of the desk by computing the marginal income product for every stage of labor utilization.c. How a lot labor ought to the supervisor rent in an effort to maximize revenue? Why?d. Fill within the blanks in column 5 of the desk by computing marginal price.e. What number of models of output ought to the manger produce in order to maximise revenue? Why?f. Fill within the blanks in column 6 with the revenue earned at every stage of labor utilization.g. Do your solutions to elements c and e maximize revenue? Does it matter whether or not the supervisor chooses labor utilization or chooses output in an effort to maximize revenue? Why?h. How a lot labor ought to the supervisor rent when the wage fee is $20? How a lot revenue is earned? Is marginal product larger or lower than common product at this stage of labor utilization? Why does it matter?Q2: CH 11 (15%)Suppose you gained a hoe reworking firm. You might be presently incomes short-run income. The house remodelingindustry is an increasing-cost trade. In the long term, what do you count on will occur toa. Your firm’s prices of manufacturing? Clarify.b. The worth you may cost in your reworking providers? Why?c. Earnings in residence reworking? Why? Q3: CH 12 (15%)Larger unemployment brought on by the recession and larger gasoline costs have contributed to a considerable discount throughout 2008 within the variety of autos on roads, bridges, and in tunnels. Based on The Wall Avenue Journal (April 28, 2009), the discount in demand for toll bridge and tunnel crossing created a severe income downside for a lot of cities. In New York, the variety of autos touring throughout bridges and thru tunnels fell from 23.6 million in January 2008 to 21.9 million in January 2009. “That drop presents a problem, as a result of street tolls subsidize MTA subways, that are extra seemingly for use as individuals get out of their vehicles.” In an obvious try to rise toll income, the MTA elevated tolls by 10 p.c on the 9 crossings it controls.a. Is MTA a monopolist in New York Metropolis? Do you suppose MTA possesses a excessive diploma of market energy? Why or why not?b. If the marginal price of letting one other car cross a bridge or journey by way of a tunnel is almost zero, how ought to the MTA set tolls order to maximise revenue? With a view to maximize toll income? How are these two aims associated?c. With the lower in demand for bridge and tunnel crossings, what's the optimum solution to modify tolls: increase tolls,decrease tolls, or depart tolls unchanged? Clarify rigorously?This fall: CH 12 (20%)The Ali Baba Co. is the one provider of a specific sort of Oriental carpet. The estimated demant for its carpets isQ = 112,000 – 500P + 5MWhere Q = variety of carpets, P = value of carpets ( per unit), and M = consumers’ revenue per capita. The estimated common variable price operate for Ali Baba’s carpets isAVC = 200 – zero.zero12Q + zero.000002Q2Consumer’s revenue per capita is anticipated to be $20,000 and complete fastened price is $100,000zero. a. How many carpets ought to the agency produce in an effort to maximize revenue?b. What's the revenue maximizing value of carpets?c. What's the most quantity of revenue that the agency can earn promoting carpets?d. Reply elements a by way of c if consumers’ revenue per capita is anticipated to be $30,000 as an alternative.Q5: CH 12 (20%)A agency with two factories, one in Michigan and one in Texas, has determined that it ought to produce complete of 500 unitsto maximize revenue. The agency is presently producing 200 models within the Michigan manufacturing unit and 300 models within the Texasfactory. At this allocation between vegetation, the final unit of output produced in Michigan added $5 to complete price, whereas the final unit of output produced in Texas added $three to complete price.a. Is the agency maximizing revenue? In that case, why? If not, what ought to it do?b. If the agency produces 201 models in Michigan and 299 in Texas, what would be the enhance (lower) within the firm’stotal price