HUM 150 Week 3 Learning Team Assignment Film Matrix Comedy a

  This paperwork of ECON 545 Week 8 Final Exam shows the solutions to the following problems: 1. (TCO A) Suppose you are hired to manage a small manufacturing facility that produces Widgets.
(a.) (15 points) You know from data collected on the Widget Market that market demand and market supply have both increased recently. As manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility?
Remember that supply and demand are about the market supply and market demand, which is bigger than your own company. You are being given data on supply and demand for the whole market and are being asked what effect that has on you as a small part of that market.
(b.) (15 points) Now, suppose that following the supply and demand changes in (a), a substitute good goes up in price, and your costs of production increase. What new decisions will you make regarding production levels and pricing for your Widget facility?
2. (TCO B) Here is some data on the demand for marshmallows:
Price Quantity
$10 100
$ 8 300
$ 6 700
$ 4 1300
$ 2 2200
(a.) (15 points) Is demand elastic or inelastic in the $6-$8 price range? How do you know?
(b.) (15 points) If the table represents the demand faced by a monopoly firm, then what is that firm
Business - General Business
 1.



 Question :



 (TCO A) Suppose you are hired to manage a small manufacturing facility that produces Widgets.

 (a.) (15 points) You know from data collected on the Widget Market that market demand and market supply have both increased recently. As manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility?

 Remember that supply and demand are about the market supply and market demand, which is bigger than your own company. You are being given data on supply and demand for the whole market and are being asked what effect that has on you as a small part of that market.

 (b.) (15 points) Now, suppose that following the supply and demand changes in (a), a substitute good goes up in price, and your costs of production increase. What new decisions will you make regarding production levels and pricing for your Widget facility?





 2.



 Question :



 (TCO B) Here is some data on the demand for marshmallows:

 Price Quantity
 $10 100
 $ 8 300
 $ 6 700
 $ 4 1300
 $ 2 2200

 (a.) (15 points) Is demand elastic or inelastic in the $6-$8 price range? How do you know?

 (b.) (15 points) If the table represents the demand faced by a monopoly firm, then what is that firm’s marginal revenue as it increases output from 1300 units to 2200 units? Show all work. (Be careful here!)





 3.



 Question :



 (TCO C) You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.
 Total Total
 Workers   Labor Cost  Output  Revenue
 1  $500  100  $700
 2  1000  280  1150
 3  1500  440  1440
 4  2000  540  1570
 5  2500  600  1670
 6  3000  630  1710
 7  3500  640  1730

 (a.) (6 points) What is the marginal product of the second worker?

 (b.) (6 points) What is the marginal revenue product of the fourth worker?

 (c.) (6 points) What is the marginal cost of the first worker?

 (d.) (12 points) Based on your knowledge of marginal analysis, how many workers should you hire? Explain you answer.







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When you are about to take a big exam, make sure you eat an adequate breakfast but keep it a little light. Don't go into a test hungry, or you'll have a lot of trouble concentrating. Do not overeat either; however, so you don't have to deal with an upset stomach.