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Please answer and explain all questions Question 2: Only two firms, ABC and MNO, sell a particular product. The following table shows the demand curve
Please answer and explain all questions
Question 2: Only two firms, ABC and MNO, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $4 and zero fixed cost. Quantity Demanded Total Revenue (Units) (Dollars) 0 0 Price (Dollars per unit) 14 13 12 11 10 5 10 65 120 165 200 15 20 25 30 225 9 8 240 7 35 6 40 5 45 245 240 225 200 165 4 3 2 50 55 60 65 70 120 65 1 0 0 Refer to the table above and explain: A). If ABC and MNO operate to jointly maximize profits, then what is the price? B). If ABC and MNO operate to jointly maximize profits, then what quantity is sold? C). If ABC and MNO operate to jointly maximize profits and agree to share the profit equally, then how much profit will each of them earn? D). If this market were perfectly competitive instead of oligopolistic, what quantity would be produced? + Question 3: Consider the following daily production data for MadeFromScratch, Inc. Made From Scratch sells cupcakes for $3 each and pays the workers a wage of $325 per day. Labor (Number of workers) Marginal Product Output of Labor (Cupcakes per day) (Cupcakes per day) 0 Value of the Marginal Product of Labor (Cupcakes) Wage (Dollars per worker per day) 325 325 Marginal Profit (Dollars) 0 1 200 2 350 325 3 475 575 325 325 4 Refer to the table above and explain: A). What is the third worker's marginal product of labor? B). What is the value of the marginal product of the first worker? C) Assuming Made FromScratch is a competitive, profit-maximizing firm, how many workers will the firm hire? OStep by Step Solution
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