W Content X Bb Microso x L Mall-Si X * Course X * Course! X _= reading x _ ' ' X X _= X C' : learnus-east-1-prodf|eet01-xythostcontenttblackboardcdntcom Microsoft Word - Econ 201 Problem Set #2.docx Name: Due November 30'\" OR December 7th Econ 201: Principals of Microeconomics 50 Points Problem Set #2 Directions: Please answer the following questions. Show your work if the question requires a calculation If you have to draw a graph, make sure you label all axis and curves, You may discuss there questions with your fellow classmates; however, each student must submit their own work, in their own words. Work that is copied or paraphrased will not be accepted. Academic dishonesty (including the use afCheggxam etc.) will result in a grade afzem Chapter 7 Week 10 on Blackboard 1. (8 Points) There is a small lawn maintenance rm in my town that offers \"fall cleanup" services for $100. In the short run their capital is xed (one truck, two rakes, one mower, one wood/leaf chipper, etc). Use the following production function schedule/chart to answer the questions below: # of Workers Total Product Marginal (per day) Product . Fill in the marginal product column in the chart above (shaded area), . What is happening to marginal product for the first 2 workers hired (increasing, decreasing, staying the same)? Why could this be happening? . what is happening to the marginal product for the 3rd and 4m worker (increasing, decreasing, staying the same)? Why is this happening? 4 Suppose the prevailing wage for these workers is $150 per day, Would it make sense for this company to hire the 4'll worker in order to clean the 8'\" yard each day? Briey explain. W Content X Bb Microso x L Mail-Sr X wk Course X * Course! X reading x ' X X C' : learnus-east-l-prodfleet01-xythosicontentiblackboardcdnicom Microsoft Word - Econ 201 Problem Set #2.docx 2. (6 Points) Suppose Firm X has the following cost structure. Total Product (Q) Fixed Costs Variable Costs Total Costs Marginal Costs $60 $25 $45 $70 $100 $140 a. Fill in the missing values above (shaded areas). b. Describe what is happening to marginal cost as the firm produces more units of output. Briey explain why this is happening? Chapter 8 week 11 on Blackboard 3. (8 Points) Suppose we have the perfectly competitive market for Good X and Firm A, one of many small firms in that market. They are both described in the graphs below. Market for Gnod x Quantvlv 1,000 Quantity 1 2 3 4 5 5 7 s a. What price will this rm charge? Briey explain why b. Draw this rms demand curve on the \"Firm A" graph. 0. How many units of Goad X will this rm produce? Briey explain why. W Content X Bb Microso X L Mail-Sl X * Course X * Coursel X reading X ' X X C' : learnus-east-1-prodf|eet01-xythoslcontentlblackboardcdnlcom Microsoft Word - Econ 201 Problem Set #2.docx l What prots will this rm earn in the short run'.7 . In l2 sentences explain why this perfectly competitive rm will earn zero prom in the long run. Show how this happens on both the market and rm graphs above. In the long mn. what will the price of this product be? Chapter 9 Week 12 on Blackboard 4. (10 Points) Suppose we have the following market for a good produced by a pure monopoly. Qd Price Total Marginal Total Cost Marginal Revenue Revenue Cost $50 10 $40 20 $30 40 $20 70 . Fill in the missing values in the table above (shaded areas). l What is the prot maximizing quantity of output? What is the price it will charge? . What are the rm's prots? Do they get to keep these prots in the long run? Why or why not? . Draw the graph for this monopoly in the space below. Be sure to draw the demand curve, the MR curve and the MC & ATC curves. Label the prot maximizing level of output and the price the monopoly will charge. Content X Bb Microsoft X Mail - Sua X Course H X Course H X reading re X E essay 1 - X intricate c X \\ Vimm's La x lab 2 - Go x Netflix X C learn-us-east-1-prod-fleet01-xythos.content.blackboardcdn.com/blackboard.learn.xythos.prod/57853691332dd/17499429?X-Blackboard-Expiration=166872... Q h K E Microsoft Word - Econ 201 Problem Set #2.docx 4 / 4 | 77% + Chapter 10 (Week 14 on Blackboard) 5. (10 Points) In a brief essay (4-5 sentences) explain how monopolistically competitive firms acquire their market power? What does this mean for how they decide what price to charge, compared to a perfectly competitive firm? In your essay give me a real-world example of a monopolistically competitive firm and explain why it fits that market structure. Chapters 8-10 (Weeks 11-14 on Blackboard 6. (8 Points) For each of the following statements, list whether it applies to perfectly competitive firms, monopolies, monopolistically competitive firms, or oligopolies. Some statements may apply to more than one market structure a. These firms are price takers, meaning they have to sell their products at market price. b. These firms always have differentiated products. c. These firms are in a market structure where there are many firms. d. These firms choose their optimum level of output where MR = MC. 3 e. These firms engage in strategic decision making when making choices. f. These firms operate in a market where there are barriers to entry. g. These firms have zero profits in the long run