1) Collegetown is planning a parade for their conference champion football team. The residents must decide how much to spend on parade floats. The marginal cost of each float is $410. There are two types of football fans in Collegetown, regular and diehard. The marginal benefit of each additional parade float is represented in the following table:
Q
MBR
MBDH
1
25
55
2
20
50
3
15
45
4
10
40
5
5
35
If Collegetown has 5 regular fans and 9 diehard fans, what is the socially optimal number of parade floats?
2)Using the midpoint formula, find the elasticity coefficient for a producer when a price increase from $3.50 to $4.50 causes a fall in quantity demanded from 52 units to 40 units.
3)A monopolist sells 15 holiday greeting cards for $4.50 apiece. If the monopolist desires to sell a 16th card, then the price must be lowered to $4.40. The marginal revenue earned from selling the additional card is $____.
5)A firm in a perfectly competitive labor market has a marginal revenue product of labor curve of MRP = 84 â 3L. If the market wage rate is $9, the profit-maximizing level of employment is ____ workers.
6)If the price of good X rises, then the resulting decrease in the consumerâs quantity demanded will___ the consumer's total utility from consuming X and____ the consumer's marginal utility from that last unit of X consumed.
1) Collegetown is planning a parade for their conference champion football team. The residents must decide how much to spend on parade floats. The marginal cost of each float is $410. There are two types of football fans in Collegetown, regular and diehard. The marginal benefit of each additional parade float is represented in the following table:
| Q | MBR | MBDH |
| 1 | 25 | 55 |
| 2 | 20 | 50 |
| 3 | 15 | 45 |
| 4 | 10 | 40 |
| 5 | 5 | 35 |
If Collegetown has 5 regular fans and 9 diehard fans, what is the socially optimal number of parade floats?
2)Using the midpoint formula, find the elasticity coefficient for a producer when a price increase from $3.50 to $4.50 causes a fall in quantity demanded from 52 units to 40 units.
3)A monopolist sells 15 holiday greeting cards for $4.50 apiece. If the monopolist desires to sell a 16th card, then the price must be lowered to $4.40. The marginal revenue earned from selling the additional card is $____.
5)A firm in a perfectly competitive labor market has a marginal revenue product of labor curve of MRP = 84 â 3L. If the market wage rate is $9, the profit-maximizing level of employment is ____ workers.
6)If the price of good X rises, then the resulting decrease in the consumerâs quantity demanded will___ the consumer's total utility from consuming X and____ the consumer's marginal utility from that last unit of X consumed.
