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Use the following information to answer the next 4 questions. In the figure below, Columns ( 1 ) and ( 2 ) provide a portion
Use the following information to answer the next questions.
In the figure below, Columns and provide a portion of a monopolist's production function for a single variable input, labor. Columns and represent the demand function facing the monopolist over this range of output.
Units of Labor Units of Output Price
$
Question points
How much does the fifth unit of labor add to the firm's total revenue?
Question options:
$
$
$
$
None of the above.
Question points
If the monopolist faces a wage rate of $ how many units of labor will the firm employ?
Question options:
units of labor
units of labor
units of labor
units of labor
units of labor
Question points
Suppose that the government provides an acrosstheboard tax refund for all consumers. How will this change affect the price and output decisions for this firm?
Question options:
Price will increase, and output will increase.
Price will increase, and output will decrease.
Price will decrease, and output will decrease.
Price will decrease, and output will increase.
Question points
Assume that product prices increase by $ at each level of output. How many units of labor will the firm now employ at a fixed wage rate of $
Question options:
units of labor
units of labor
units of labor
units of labor
units of labor
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