A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week.
Given the above, suppose the weekly wage rate increases to $1,400 per worker. The firm would hire ________ workers and earn a profit of ________ per week.
A. 6 ; $6,000
B. 6 ; $4,800
C. 6 ; $8,400
D. 0 ; -$1,800
E. 6 ; -$2,400
Answer: D
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If the labor market in the above figure is competitive, what is the equilibrium wage and quantity of labor hired?
A) $10 and 100 hours B) $10 and 50 hours C) $5 and 100 hours D) $15 and 50 hours
If two quick oil change companies agree that one company will purchase locations in rural and suburban areas and the other company will purchase locations in the urban areas, this is an example of ________.
A) bid rigging B) price fixing C) output restrictions D) market division
Draw a graph of the firm's demand, marginal revenue, marginal cost, and average total cost curves.
Refer to the information provided in Table 21.8 below to answer the question(s) that follow. Table 21.8
Refer to Table 21.8. The value for disposable personal income in billions of dollars is
A. 890. B. 920. C. 970. D. 1,020.