Command economy. Hope this helped, have a great day! :D
The proper
tools constitute the HOW of service; the proper motive constitutes the WHY of
service; proper teachings and practices constitute the WHAT of service. The
How, Why and What of service are very significant questions to be able to
assess the different aspects of service.
A tax incidence is an economic term for the division of a tax burden between buyers and sellers. Tax incidence is related to the price elasticity of supply and demand. When supply is more elastic than demand, the tax burden falls on the buyers.
Answer:
a) perfectly competitive market
b) perfectly competitive market
c) 5 workers
d) 46 units
e) Profit of $73
Explanation:
a) The firm sells its output at the present market price, the firm has control of the market prices therefore this is a perfectly competitive market.
b) The firm can hire all of the workers it wants at a market wage rate, this means that the labor market is also perfectly competitive.
c) We have to first calculate the marginal revenue product (MRP) of each worker. The marginal revenue product of the last worker must be equals his wage rate in order to maximize profits. Hiring new workers as every additional employee adds less to the total revenue than to the costs of the firm.
MRP = Marginal product × Price.
Price = $3
Number of Total Marginal Marginal Revenue
Employees Output Product (MP) Product $ (MRP = MP * P)
0 0
1 14 14 52
2 26 12 36
3 35 9 27
4 42 7 21
5 46 4 12
6 48 2 6
The MRP of each of the first 5 employees is higher than their wage rate ($11). The firm should hire 5 workers to maximize profit
d) The output of 5 workers is 46 units
e) Fixed cost = $10
Variable cost = number of workers × wage rate = 5 × $11 = $55
Revenue = output × price per unit = 46 × $3 = $138
Profit = Revenue - variable cost - fixed cost = $138 - $55 - $10 = $73
