Refer to Figure 9.6. As a result of this policy, quantity will
A) fall to 300.
B) rise to 400.
C) stay at 400.
D) fall to 400.
E) rise to 600.
E
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Firms in an oligopoly often do not collude with each other because ________
A) collusion lowers profit B) collusion increases the cost of production C) collusion is illegal D) collusion increases competition
Refer to Table 17-5. Oil Can Harry's, a new automobile service shop, is ready to start hiring. The table above shows the relationship between the number of mechanics the firm hires and the quantity of oil changes it produces
a. Suppose the price of an oil change is $20. Complete the table by filling in the values for marginal product and marginal revenue product. b. Oil Can Harry's is an input price-taker. Suppose the wage paid to mechanics is $80 per day. What is the profit-maximizing number of mechanics? c. Suppose the wage rate rises to $100 per day. (i) What happens to the firm's demand curve for mechanics? (ii) What happens to the profit-maximizing quantity of mechanics? d. Suppose the wage rate is $60 per day and the price of an oil change is now $15. (i) What happens to the firm's demand curve for mechanics? (ii) What happens to the profit-maximizing quantity of mechanics?