Practice Problem Number One Productions Possibilities Curve (PPC) For Demand and Supply of Soybeans Price/Buschel Qd/Week Qs/Week wnimar 4elia is/40 o $ 1 80 5/ wit $ 2 55 20 A S 3 35 35 $ 4 20 50 : | $ 5 10 60 " | N T Questions: 1) What is the market clearing price for the soybean market? 2) How many bushels of soybeans will be exchanged at the break-even price? 3) Using the PPC, at three robots what is this marginal cost of one more robot? 4) Using the PPC, Is Point A potentially attainable with an increase in labor? True or False Your marketing department of Data Instruments has determined the following models for revenue and cost for the production and sale of pocket calculators: Revenue: TR = $20x Cost: TC = $12x + $8,000 (Where x = Number of Calculators) 5) What is Marginal Revenue? 6) What is Marginal Cost? 7) What is Fixed Cost? For The Following Problems What Happens to Price and Quantity For The Scenario? Use The Market Model!!!! P Q_ 8) A Pandemic causes migrant workers to become sick and not work. Many of the workers are laborers in the food processing business. What happens? SHOW ALL WORK BELOW! P Q 9) A Pandemic causes a recession. The US Congress approves stimulus checks for families and loans for businesses. What happens just on the consumer side? SHOW ALL WORK BELOW! When President Obama was elected president there was a marketing campaign to push more gun sales. The campaign included a 10% reduction on gun purchase prices. What happened in the gun and ammunitions markets? SHOW ALL WORK BELOW! P Q 10)Guns P Q 11)Ammo