Econ 213 problem set 3 – liberty university

Problem Set 3

Name: ________________________________________

 

Problem Set 3 is due by 11:59 p.m. (ET) on Monday of Module/Week 6.

 

1.      Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.

 

Price of crackers

Quantity Demanded (per month)

$3

80

$2.5

120

$2

160

$1.5

200

$1

240

 

$1.00–$1.50: ___________________________________

$1.50–$2.00: ___________________________________

$2.00–$2.50: ___________________________________

$2.50–$3.00: ___________________________________

 

Now, assume the price of graham crackers is $2.75. Should firms raise or lower their prices if they want to increase revenue? Explain this in terms of elasticity.

 

 

2.      Assume the competitive market shown below faces a short run price of $10. Using the graph below, identify the following:

 

Profit-maximizing output: _______________________

 

In the long run, the price falls to $7.50. Why does this happen?

 

What is the new profit-maximizing output? _______________________

 

 

 

 

 

 

 

3.      A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course, the owners have asked for your opinion. Draw 2 completely labeled graphs to help you explain the shutdown decision. One graph must be for the market as a whole, and the other must be for this store in particular. Assume that the store is losing money; however, explain why they may want to stay open for a little while longer. (Note: Your answer must include a written explanation of your graph.)

 

 

 

 

 

 

 

 

 

4.      Use the production function below to answer the following questions:

 

Units of Labor

Total Output

MP

0

0

 

1

5

 

2

15

 

3

30

 

4

42

 

5

52

 

6

60

 

7

65

 

8

67

 

9

63

 

10

55

 

 

a.)    Calculate marginal productivity (MP) and put this in the table.

 

 

b.)    At what level of employment does diminishing marginal productivity begin?

 

 

c.)    At what level of employment does marginal productivity become negative?

 

 

d.)   Why does marginal product become negative?

 

 

 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Place Order
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency