a. What is the formula for measuring the price elasticity of supply? Es = (Click to select) v b. Suppose the price of apples goes up from $20 to $23 a box. In direct response, Goldsboro Farms supplies 1,300 boxes of apples instead of 1,200 boxes. Compute the coefficient of price elasticity (midpoints approach) for Goldsboro's supply. Instructions: Round your answer to two decimal places. Es = c. Is its supply elastic, or is it inelastic? Supply is (Click to select) vImagine you have some workers and some hand-helcl computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 150 items per hour. Two workers can together inventory 200 items per hour. Three workers can together inventory 250 items per hour. And four or more workers can together inventory fewer than 260 items per hour. Computers cost $100 each and you must pay each worker $25 per hour. a. If you assign one worker per computer. what is the cost of inventorying a single item with one worker? Instructions: Round your answer to two decimal places. $ |:| per item [3. lfyou assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. 2 $ |:| per item c. It you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ |:| per item d. lfyou assign tour workers per computer. what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ |:| per item e. How many workers per computer should you assign it you wish to minimize the cost ofinventorying a single item? |:| worker[s] per computer Gomez runs a small pottery firm. He hires one helper at $11,000 per year, pays annual rent of $6,000 for his shop, and spends $22,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,500 per year if alternatively invested. He has been offered $17,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,500 per year. Total annual revenue from pottery sales is $70,000. Calculate the accounting profit and the economic profit for Gomez's pottery firm. a. Accounting profit $ b. Economic profit $A perfectly competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $10.00 per unit for the first 50 units and then $35.00 per unit for all successive units. Instructions: Round your answers to 2 decimal places. a. Does price equal or exceed average variable cost for the first 50 units?| (Click to select) What is the average variable cost for the first 50 units? $ b. Does price equal or exceed average variable cost for the first 100 units?| (Click to select) v What is the average variable cost for the first 100 units? $ c. What is the marginal cost per unit for the first 50 units? $ per unit. What is the marginal cost for units 51 and higher? $ [ per unit. d. For each of the first 50 units, does MR exceed MC? (Click to select) v What about for units 51 and higher? | (Click to select) v e. What output level will yield the largest possible profit for this perfectly competitive firm? units.Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. a. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. Output TC MC ATC 50,000 150,000 $ 0.40 100,000 200,000 0.90 150,000 237,500 1.58 200,000 325,500 2.25 b. Is this a decreasing-cost industry? (Click to select) v c. Suppose that the market price for a bottle of vitamins is $1.58 and that at that price the total market quantity demanded is 240,000,000 bottles. How many firms will there be in this industry? firm(s). d. Suppose that, instead, the market quantity demanded at a price of $1.58 is only 150,000. How many firms do you expect there to be in this industry? firm(s). e. Review your answers to parts b, c, and d. Does the level of demand determine this industry's market structure? (Click to select) v