50% more

productive
0
15

22.5
28.5
33
36

37.5

4
3

5
A
3)
£9 W =
p=£

We know that profit is maximised when MR PEW

MRP, -
MR * MR

Perfectly
need to find
competitive
Mpw where
market
MRPw=w=9
: MR
and
- D=
MR=3
3
.
,
so we

g- MP, * 3 .

table
Mp3
above
→
marginal productthatof labour is
of
3
,
in the

increase
we can see
quantities
from
cappuccinos
by 3 when Labour increases 3 to ④→ the answer .
b) 12--3 MP , MP ⇐ 4 → from the table
increase 4
, cappuccinos
when labour
by
from
increases 2 to ③ → the
answer

c) 9--4.501911 MP, 2 → the answer from the

table is ⑤

d) 9=31412 MP . =3 →
marginal product is so when

labour increases from 4 to ⑤

 0.73

0.50

Case I Case I
- 100 - 100
-

perfect -

perfect
&
equality I
equality
lane 1am
I I

£ A 8 42
→
B → A
B
.

÷
1 1
100 35 77 100
73
Cumulative share of the population Cumulative share of the population
from least to most land owned ( %) from least to most land owned ( %)

Case #
100
Gini

:[
-
=

perfect
•
equality
lane
I 1+-0
I ) area AH2-0II --
5000

£
tooth
B area B=t* =
1350
curve

&
area A= 5000-1350=3650
±
Cumulative share
from least to
of the
most
population
land owned ( %)
I ) area
: ¥ .

area A- 5000-2515=2485
g=fYo= 0.50

)
II A -0 ,
so
g=O
 28-1.50

9+0.60

65

14.1 17.4

9.7

a) TR=PQ 10=28-0.750, b) TG21-1GQ -10.342

TR= (28-0.750)*0 , MG91-0GQ

=28Q -0.750T
MR= 28-1.50

d) Profit maximised when MR=MC e) Profit - TR -

TC
-0.342
'
=h8Q -0.750 -21 -

SQ
28-1.50=9+0.60 =-21+190 -1.050T
,

2.10=19 =

-21+196%9 ) -1.05%92=64.95/2 d. p )
=g( )
.

Q= Id
.p .

12--28-0.751%4=21.2
f) I2-1YC 12-28-075114.11=17.4
28-0.750=9+0.60

19=1.350
g) DW6

3GBP
4=14.1 21.2

At

9 14.1

DWL *
(21.2-174)*(14.1-9)=9.7