Question 1:

Consider a monopoly with the curves:

TC=36+Q2

MC=2Q

Demand: P=963Q

MR=966Q

When this firm is maximizing its profit, it chooses a quantity of ________ , a price of _______ , and earns a profit of _______ .

Question 2:

Create a graph of a monopolist as well as the profit-maximizing quantity, price, and a positive profit. Make sure to draw and label:

1. The marginal cost (MC) and average cost (AC) curves (you will lose this one if they don't intersect correctly!)

2. Demand (D) and marginal revenue (MR)

3. The profit-maximizing quantity (Q)

4. The profit-maximizing price (P)

5. The average cost value (AC*)

6. The profit (Profit)

Question 3: Wikipedia is largely funded by voluntary individual donations from its users. Those users usually get a lot of value out of the existence of Wikipedia. Would we expect those users to donate an amount equivalent to the value they receive from Wikipedia? Why or why not?

Question 4: In the labor market for grocery store cashiers, the labor supply curve is w = 15 + 6L.

the cashier provides a service worth 3 every time they check someone out. The Lth cashier allows the store to check out 105 - 3L additional customers.

The equilibrium number of cashiers hired is and the equilibrium wage is

Enter only whole numbers, no decimals or dollar signs.