Question

1.The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ______________________.

A.constant returns to scale; market-oriented system

B.diverse popoulation; greater returns to scale of illegal activities

C.economies of agglomeration; corresponding diseconomies

D.economies of scale; agglomeration factors

2. Given the data provided in the table below, what will the amount of profit be for production at quantity (Q) level 7?

Q	P	TC	TR	MR	MC	Profit
0	$5	$9
1	$5	$10
2	$5	$12
3	$5	$15
4	$5	$19
5	$5	$24
6	$5	$30
7	$5	$45

Answer 1

1) The future of cities in the United States and in other countries will be determined by their ability to benefit from the _ and to minimize or counterbalance the _

C.economies of agglomeration; corresponding diseconomies

2) TR=P*Q

MR=change in TR/change in Q

MC=change in TC/change in Q

Profit =TR-TC

Q	P	TC	TR	MR	MC	Profit
0	5	9	0			-9
1	5	10	5	5	1	-5
2	5	12	10	5	2	-2
3	5	15	15	5	3	0
4	5	19	20	5	4	1
5	5	24	25	5	5	1
6	5	30	30	5	6	0
7	5	45	35	5	15	-10

Profit at Q=7 = -10