problem 1: The table below shows the total production a firm will be able to obtain if it employs varying amounts of resource X while the amounts of the other resources the firm employs remain constant. find out the marginal product of each of the seven units of resource X and enter such figures in the table. Suppose the product the firm produces sells in the market for $3.00 per unit. find out the total revenue of the firm at each of the eight levels of output and the marginal revenue product of each of seven units of resource X. Enter such figures in the table below.
On the basis of your calculations complete the firm’s demand schedule for resource X by pointing out in the table below how many units of resource X the firm would employ at the given prices.
Price of X Quantity of X demanded
$84
72
60
48
36
24
12
6
problem 2: Use the given total-product schedule for a resource to answer the next three problems. Suppose that the quantities of other resources the firm employs remain constant.
Units of resource Total product
1 12
2 21
3 27
4 32
5 36
i) If the firm’s product sells for a constant $2 per unit, determine the marginal revenue product of the third unit of the resource?
ii) If the firm’s product sells for a constant $2 per unit and the price of this resource is $8, determine how many units of the resource will the firm employ?
iii) If the firm can sell 12 units of output at a price of $1.00 per unit and 21 units of output at a price of $0.80 per unit, find out the marginal revenue product of the second unit of resource?
problem 3: The below table summarizes the marginal product data for labor in producing personal computers. Suppose that the other quantities employed by the firm remain constant. find out the MPL, TR, and MRP and answer the given problems.
L TP_{L} MP_{L} Price TR MRP
0 0 $1000 _____
1 10 _____ 1000 _____ _____
2 18 _____ 900 _____ _____
3 24 _____ 800 _____ _____
4 28 _____ 700 _____ _____
5 30 _____ 600 _____ _____
i) What kind of market is the one for personal computers?
Now look at the below table showing a different market condition for the demand for personal computers. Fill in the table and answer the given problems.
L TP_{L} MP_{L} Price TR MRP
0 0 $1000 _____
1 10 _____ 1000 _____ _____
2 18 _____ 1000 _____ _____
3 24 _____ 1000 _____ _____
4 28 _____ 1000 _____ _____
5 30 _____ 1000 _____ _____
ii) What kind of market does the firm face for personal computers?
problem 4: Complete the given table, where L is the units of labor, TPL is the total product of labor, MPL is the marginal product of labor, P is product price, TR is total revenue and MRPL is the marginal revenue product of labor.
L TP_{L} MP_{L} P TR MRP_{L}
0 0 $2.00 $_____
1 10 _____ 2.00 _____ $_____
2 19 _____ 2.00 _____ _____
3 27 _____ 2.00 _____ _____
4 34 _____ 2.00 _____ _____
5 40 _____ 2.00 _____ _____
6 45 _____ 2.00 _____ _____
7 49 _____ 2.00 _____ _____
8 52 _____ 2.00 _____ _____
9 54 _____ 2.00 _____ _____
10 55 _____ 2.00 _____ _____
i) In what kind of market is the firm selling its product? How do you know?
ii) Why does the MRP schedule reduce as labor rises?
iii) Complete the given table.
Wage rate Quantity of workers employed
$16 _____
14 _____
12 _____
10 _____
8 _____
6 _____
problem 5: What factors describe the high level of level of productivity in United States?
problem 6: Use the given data to answer the problem.
Demand and Supply of Labor Data
Employment Total output Product price Wage rate
50 708 $1.27 $6
51 760 1.26 7
52 810 1.25 8
53 858 1.24 9
Determine the numbers of units of labor will this firm hire in maximizing its profits?
problem 7: What are the three different union strategies pursued to raise wages?
problem 8: Use the extreme points from a production possibilities schedule beneath to draw two straight line production possibilities curves for two nations, A and B by using the graphs below. Assume constant costs.
Nation Food Clothing
A 4 4
B 2 8
i) Determine the cost ratio for the two products?
ii) If each nation specializes according to the comparative advantage, who must produce and trade each product? Why?
iii) What will be the range for terms of trade? If the terms are set at 1 food = 2 clothing, illustrate how the trading possibilities lines will change in the graph. Describe.
problem 9: Describe how the “Buy American” theme hurts Americans.
problem 10: What is the main aim of the World Trade Organization and its present activity?