Question 3 Use the graph below to answer the following question. I\": ATC PHI: The monopolistic competitive rm above is: O at shutdown O earning prots 0 at breakeven O earning losses Question 16 2 p The table shows the total units of output corresponding to the number of workers. Suppose the price of output is $10 per unit. What is the marginal revenue product for the fourth worker? Number of Workers Units of Output 50 110 W N 170 220 Un 250 270 O $800 O $300 O $500 O $600Question 30 6 pts Barbara's Baker',r charges $25 per cake. Currently Barbara has eight bakers, who were able to sell a total of 28 cakes last week. This week, she hired a ninth baker. The nine bakers together sold a total 0136 cakes. What is the marginal revenue product of the ninth baker? The Marginal Physical Product of labor for the ninth baker is The Marginal Revenue Product of labor of the ninth baker is Question 31 12 I Consider two players, Mr. Black and Ms. White, are playing a game. Mr. Black moves rst and has the option of Up or Down. Then, regardless of what Mr. Black chooses, Ms. White then has the option of High or Low. The game tree for this game would appear as follows: W {$4} {3.1} {1.8} 1. Is the game above sequential or simultaneous? 2. Are there dominant strategies for each player? If so, what are they? 3. What is the Nash Equilibrium (N E)? 4. Is this a Prisoner's Dilemma? Why or why not? Question 32 6 pts Below is the market for chewing tobacco. Dp is the demand in the private market. Use the graph to articulate how the equilibrium price and quantity would change if social costs/ benefits were taken into account. Hint: First decide whether chewing tobacco is a positive or negative externality, then shift the curve to show the addition of the social cost/ benefit. Finally, specify whether the price and quantity would each increase or decrease. PRICE AND COST DP QUANTITY Chewing tobacco is [ Select ] that, when taken into consideration, results in a [ Select ] . This causes a(n) [ Select ] in price and a(n) [ Select ] in quantity.Question 33 :12 pts Walmart and Target want to minimize their costs by outsourcing their marketing activities; however, they have a fear that outsourcing could result in an increase in sales for their competitor. The strategies they can adopt are either to Outsource or Not Outsource their marketing activities. The payoff matrix for the two organizations is shown in the table below: TARGET Outsource Not Outsource m \" WALMART 1. The best response strategy by Target if Walmart chooses Outsource is 2. The best response strategy by Target if Walmart chooses Not Outsource is 3. Does Walmart have a dominant strategy? (yes or no) If so, what is it? (Use NA for no dominant strategy} 4. Does Target have a dominant strategy? (yes or no) If so. what is it? (use NA for no dominant strategy) 5. The Nash equilibrium is You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation: . If you both work hard. you both get an A, which gives you 40 units of happiness (utils). - If only one of you works hard, you both get a B, which gives each of 30 units of happiness (utils). . If neither of you works hard, you both get a D, which gives each of you 10 units of happiness (utils). - Working hard costs 25 utils. Fill in the payoff matrix (in utils) using the above information: YOU R CLASSSMATE Work hard Do not work hard Work hard YOU Do not work hard 9' II E" II E\" II qn l|