1. Suppose a consumer has a utility function U(X,Y) = 2X +Y.The consumer has $12 to spend (M = $12).Initially, the prices are PX= $3 and PY= $2.How much would a consumer be willing to pay to prevent the price of X from increasing to PX= $5?Please only enter the number for your answer.Round your answer to two decimal places.
2. Suppose in the short run a firm's capital is fixed.The firm's marginal cost of production is MC = $34.56.If the wage rate is $9.84, what is the Marginal Product of Labor (MPL)?Round your answer to two decimal places.
3. Suppose a firm's Average Total Cost of production = $76.Also, its Average Variable Cost = $33.If the firm's total Fixed Cost = $192, how many units of output is the firm producing?Round your answer to two decimal places.
4. Suppose in the short run a perfectly competitive firm has FC = $675 and Variable Cost = 3q2where q is the firm's quantity of output.Therefore its marginal cost is MC = 6q.If the market price is P = $120, how much profit will this firm earn if it maximizes its profit?Round your answer to two decimal places.