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Questions
(i) You are an industry analyst. Last year, the production cost of Microprocessor increased remarkably due to labor unionization. Nevertheless, the industry experienced a sharp increase in total revenue. How do you explain this? The demand did not change. You must use a diagram to answer this question.
(ii) 5% decrease in price caused only 1% increase in total revenue. Is demand elastic, inelastic, or unit elastic? Explain.
(iii) Suppose one and only one worker is always required to operate one machine, and together they produce 100 units of output. Let's denote the number of worker by L and the number of Machine by K. What is the production function at this firm?
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When the demand function is 2Q - 24 + 3P = 0, find the marginal revenue when Q=3.
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when the demand function is 2Q-24+3P=0,find the marginal revenue when Q=3.
Sally recently finished her full time training and received certification as a nurses aid at the end of august.
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