Amonopolist faces the following inverse demand curve: pp(q) = 400 – 4q and its cost function is given by c(q) = 2q2 + 40. 1. what is the firm's elasticity of demand? 2. recall that a monopolist's supply curve is its marginal cost curve. express the firm's supply curve as a function of q, ps(q). 3. what price and quantity levels maximize total welfare? how is this welfare allocated between consumers and producers? 4. calculate the monopoly price and quantity traded for the firm. calculate the consumer surplus, producer surplus, profit and dead weight loss (dwl) at the monopoly price. 5. compute the lerner's index. suppose the government decides to regulate the industry in which the firm operates with the objective of increasing consumer surplus. it tells the firm that it will be paid $80 dollars for each unit it sells. 6. how much does the firm produce? how much does this subsidy cost the government?

Ajustification for job training programs is that they improve worker productivity. suppose that you are asked to evaluate whether more job training makes workers more productive. however, rather than having data on individual workers, you have access to data on manufacturing firms in ohio. in particu- lar, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output). (i) carefully state the ceteris paribus thought experiment underlying this policy question. (ii) does it seem likely that a firm’s decision to train its workers will be independent of worker characteristics? what are some of those measurable and unmeasurable worker characteristics? (iii) name a factor other than worker characteristics that can affect worker productivity. (iv) if you find a positive correlation between output and training, would you have convincingly established that job training makes workers more productive? explain.

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?

Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.