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a.) Determine the profit maximizing level of output. b.) Compute the profit maximizing price. c.) Calculate the upper and lower limits within which marginal cost may vary without affecting the profi
Mr. Ram finds that the tickets booth should offer 30% rather than 50% discounts to maximize revenue. what does this say about demand elasticity at; a ticket's face value price; at a 50% discounted p
Suppose you are a monopolist operating two plants at different locations. Both plants produce the same product; Q1 is the quantity produced at plant 1 and Q2 is the quantity produced at plant2.
The supply is simply the sum of the marginal cost curves of all the firms in the industry. Suppose that all the competitive firms collude to form one single monopoly firm. (Collusion changes neither
On January 1, 1994 Popoff purchased a bond with a face value of $10,000 for $9,500. The bond was to pay 8 percent per year payable on December 31 of each year and be purchased back at the end of the
If I am in the state marginal tax rate of 6% and the federal tax rate of 25%, how much before tax rate of return (BTRR) will I have to generate to yield an after-tax of return (ATRR) of 6%
There are many potential buyers for used cars. All of them are willing for pay $1000 for a lemon and $2000 for a good used car. There are 1000 owners of lemon and 1000 owners of good used car.
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $35.00 per unit
The oligopoly firms have contant marginal costs at MC = 40 Calculate the upper and lower limits within which marginal cost may vary without affecting the profit maximizing outpt or the price.
Consider a two consumer exchange economy. Consumer 1 and consumer 2 have utility functions given by:u2=xy These consumers are initially endowed with: Compute each consumers demand functions for goods
Two oligopoly firms are in the process of evaluating their marketing strategies. Firm 1 can generate estimated profits of $10 million from strategy A if the second firm reacts by strategy C, and $15
(1)Suppose a firm produces and sells its output at $38 per unit, in what market is such a firm operating (2)Determine the economic capacity of the firm in part(1) if the firm's total cost function is
An investor bought 100 shares of stock at a cost of $10 per share. He held the stock for 15 years and then sold it for a total of $4000. For the first 3 years, he received no dividends.
Mr. Smith wishes to sell a bond that has a face value of $1,000.The bond bears an interest rate of 8%,with bond interest payable semiannually. Four years ago, the bond was purchased at $900.
Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees te
Suppose Market Demand is given by Q=50-2P, Market Supply is given by Q=P-10. Now the government decides to impose a lump-sum unit tax on the producer. The amount of tax will be 3 dollars per unit.
The market inverse demand is given by p(q)=100-q where q denotes the total quantity provided. There are two firms, A and B. Both have the same and constant marginal cost is a constant 10.
The return on stock A is 8% and the standard deviation is 4 %. The return on stock B is 9% and the corresponding deviation is 5%. Which stock is more desirable
Let F : R -> R be a strictly increasing function. If the utility function u* is de ned by u*(x) = F(u(x)) what are the Hicksian demand functions generated by u*(answer in terms of h(p; u) and e(p
Let u be a utility function which generates demand function x(p;w) and indirect utility function v(p;w). Let F : R -> R<br />be a strictly increasing function. If the utility function u
If Adi believes that Jill will abide by their collusive agreement and perform only three surgeries, find a number of surgeries that Adi could perform that would maximize his profits.
Each firm's decision will affect its own profits, as well as profits of its competitor. The following payoff matrix shows the possible outcomes for this game between Coke and Pepsi. Here Coke is the
you have been appointed as chair of Economic Advisors in Fantasyland. Income is currently $600,000, unemployment is 5 percent, and there are signs of coming inflation. You rely on a research assista
Assume they they buy if price exactly equals to willingness to pay. The monopolist can produce the good at a constant marginal cost 3. a. describe efficient allocation of the good b. describe the pro