Consider the following events: Scientists reveal that eating oats can result in glowing skin and healthy hair, and at the same time, wages (i.e., the price of labour) for the oat production rise.
(a) Illustrate and explain what effect these changes have on the equilibrium price and quantity of oats.
(b) Critically evaluate what will happen to the oat farmers’ total revenue.

The medical assistant has been asked to mail a 14-ounce document from the medical office to the Internal Revenue Service, to be delivered within 3 days, and with proof that the letter was mailed before a specific date. What is the best classification of mail for this document, and what special services should the medical assistant purchase? Why are these the best choices?

b. Explain the relationship between total product, marginal product, and average product. [3 marks]

c. What is the law of diminishing returns and what does it explain the shape of the short run average cost curve. [3 marks]

d. Why is the level of output at which marginal revenue equals marginal cost the profit maximizing output?

7) In order to maximize profits, the firm should adjust its output level to that point at which marginal

cost equals average revenue. This statement is true for

1. perfect competition

2. monopoly

3. monopolistic competition

4. oligopoly

A) 2 and 3

B) 2, 3, and 4

C) 1 and 3

D) 1 only

A profit-maximizing firm should shut down in the short run if:

Answer choices:

price is greater than marginal cost.

total revenue is less than total variable cost.

the firm is earning less than a normal rate of return.

the firm is not able to cover its overhead expenses.

marginal cost is higher than average cost.

Tax efficiency

A. measures the effectiveness of the firm to keep its profits on an after-tax basis.

B. measures the ability of the firm to reduce taxes by internationalizing their operations.

C. is higher for firms with a strong research and development team.

D. measures the amount of revenue that is taxable for every dollar of invested capital.

E. is higher for firms with a high tax rate.

Using the data below, determin how many workers should be hired by this perfectly competitive firm. Assume the marginal factor cost, or wage rate, is $55, and the marginal revenue product is in $'s:

a) 1

b) 2

c) 3

d) 4

1. An engineering project involves the purchase of a capital asset with first cost of $100 000, operating costs of $5 000 per year and a service life of 10 years. The expected revenue is $20 000 per year. If the CCA rate is 25%, interest rate is 10% and the corporate tax rate is 33%, what is the project's present worth?

1. Assume a monopolist firm with diminishing marginal product.
   1. Graph the marginal cost curve.
   2. Graph the firm level demand curve.
   3. Graph the firm level marginal revenue curve.
   4. Identify the profit maximizing quantity to produce and the corresponding price.
   5. What does the price function look like if the monopolist can engage in perfect price discrimination?