Consider total cost and total revenue, given in the following table:

In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)

In order to maximize profit, how many units should the firm produce? Check all that apply.

4

5

6

7

In the previous table, enter marginal revenue and marginal cost for each quantity.

On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).)

Marginal RevenueMarginal Cost01234567109876543210Revenue and CostsQuantity

The marginal-revenue curve and the marginal-cost curve cross at a quantity   .

This firm   in a competitive industry, because marginal revenue is   as quantity increases.

True or False: The industry is in a long-run equilibrium.

True

False

What are some ways that companies can survive and manage an economic downturn? The textbook is silent on this scenario (Gamble, 2019, Chapter 6). What are some lessons that we can draw from our readings in Texas Monthly and Harvard Business Review?

Solomon, D. & Forbes, P. (2020, March 26). "Inside the Story of How H-E-B Planned for the Pandemic." Texas Monthly. Retrieved at www.texasmonthly.com

This Question has four parts:    

Explain the following

A. What are the three fundamental Questions in Economics

B. Equilibrium Price

C. Income effect

D. Mixed economy

Do you agree with the following arguments? Why?

a. Cambodia cannot find anything to export. There is no resource that is abundant—certainly not capital, and as a small country it is not even able to export labor-intensive good. Do you agree? Discuss.

b. Japanese labor productivity is roughly the same as that of the United States in the manufacturing sector (higher in some industries, lower in others), while the United States is considerably more productive in the service sector. But most services are nontraded. Some analysts argued that this poses a problem for the U.S. because its comparative advantage lies in things that cannot be sold on world markets.

5. How does short-run and long run profit affect the real world? Give examples.

The table below contains the Production Possibilities Frontier (PPF) data for Country ABC. It contains the maximum possible combinations of guns and butter that can be produced in a given period of time:

A. What is the opportunity cost of moving from producing 9 thousand units of guns to 14 thousand units of guns stated in terms of 1 unit of guns? ­­­­­­­­­­­­

B.  Explain in your words why Production Possibility Curve is Convex shape ?

C. Give three factors that shift the PPC to the right.

If the natural rate of unemployment equals 4 percent and the actual rate of unemployment equals 6 percent, then cyclical unemployment equals:

Multiple Choice

−2 percent.

10 percent.

2 percent.

6 percent.

Suppose the economy consists of a union and nonunion sector. The labor demand curve in each sector is given by L =1,000,000−20w. The total (economy wide) supply of labor is 1,000,000 (500K in each sector) and it does not depend upon the wage. All workers are equally skilled and equally suited for work in either sector.

(a) If a competitive labor market existed in each sector, how many would work in each sector? What would be the wage in each sector?

(b) Suppose now a monopoly union sets the wage at $30,000 in the union sector. What will be the wage in the nonunion sector? What is the union wage gap? What is the size of the deadweight loss resulting from the monopoly union?

4. The Costs of Production. Explain how fixed costs, variable costs, and the total costs affect people daily?

I. What would happen to the nominal interest rate and quantity of money when the Fed decides to buy bonds through open market operations (OMO)?  Answer this using at least 100 words.

II. What if the Fed lowers the discount rate? What would happen to the nominal interest rate and quantity of money? Answer this using at least 100 words.

Samsung  Electronics is  trying  to reduce  supply chain risk by making more responsible make-buy decisions through  improved  cost estimation.  A High-use component can be purchased for $25 per unit with delivery promised within a week. Alternatively, Samsung can make the component in-house and have it readily available at a cost of $5 per unit, if equipment costing $150,000 is purchased. Labor and other operating costs are estimated to be $35,000 per year over the study period of 5 years. Salvage  is estimated  at  10% of  first  cost and i = 12%  per  year. Determine the breakeven quantity

If you are a startup and need a co-working space, how would you evaluate make your choice between IWG(Regus) and WeWork? explain as much and as clearly as possible

What is the effect of recent pandemic crisis on real rental rate of capital? Explain

The UQ Union has permitted two florists (Lucy and John) to set up stalls on Market Day. If paid $24 for a bouquet, Lucy is willing to provide 27 bouquets and John is only willing to provide 18. At $14 a bouquet, Lucy is only willing to provide 13 bouquets and John will only provide 9. Which of the following statements are true:

a) The quantity supplied will fall to zero on non-market days at UQ.

b) Lucy's individual quantity supplied will rise when the price falls as more consumers will demand bouquets.

c) The market quantity supplied at UQ on Market Day is 40 when the price is $14 a bouquet.

d) Lucy's individual quantity supplied will increase when the price rises, due to more consumers demanding bouquets.