Author Question: Using the demand schedule in the above table, if the firm's marginal cost is constant at 3.00, ... (Read 146 times)

jhjkgdfhk · **on:** Jun 29, 2018

Using the demand schedule in the above table, if the firm's marginal cost is constant at 3.00, output for a perfectly price discriminating monopolist is

A) 2 units.
B) 3 units.
C) 4 units.
D) 5 units.

Question 2

Hank's Propane Storage Company is a profit-maximizing monopsony in the local labor market for propane handling, delivery, and other associated services. The supply and marginal cost of labor curves are shown in the figure above.

Hank's demand for labor curve is the curve labeled VMP = D. At what level should a minimum wage be set in order to achieve the wage rate and quantity of employment that would be attained in a competitive labor market? A) 4 per hour
B) 6 per hour
C) 8 per hour
D) 12 per hour