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An industry has a supply curve MC (or P) $/unit = 10Q0.9. Demand follows P $/unit = 100 - Q1.1. Total external social cost (pollution) (in $ total) = 20Q1.2. What is the competitive equilibrium.
Consider the following data. Currency $400 billion Bank reserves $500 billion (a) If banks are holding $80 billion in required reserves, and the required reserve ratio = 0.10, what is the value of che
Suppose that First Bank has $34 million in checkable deposits, Second Bank has $47 million in checkable deposits, and the reserve requirements for checkable deposit is 10%.
Suppose First National Bank has $200 million of assets and $20 million of equity capital. If First National has a 2% return on assets (ROA), what is its return on equity (ROE) Suppose First National
The production function is Q = ALaKb, where a > 0 and b > 0. a. The marginal product of labor is MPL = b. The marginal product of capital is MPK = c The marginal rate of technical substitution i
Consider the production function Q= 20K1/2L1/2 The firm operates in the short run with 16 units of capital.Using the marginal product (MP) function derived in part c, the marginal product is _____ whe
The plant has a capacity output of 200,000 calculators per year, and the plant's manager regards 75 percent of capacity as the normal or standard output. The projected total variable costs for the n
(a) Calculate profit-maximizing output (b) Calculate Price at profit-maximizing point (c)What is the variable cost function A firm has the following Price and Cost functions
If a piece of earthmoving equipment was purchased for $120,000. Using MACRS prescribed percentages, find the depreciation for each year over its recovery period if the equipment is sold for $30,000
The government introduces a subsidy s=10 per unit of sugar exported and at the same time it doesn't let any imports in. Calculate the new (i)domestic price, consumption and production, (ii) world pr
Advice for an Unprofitable Firm. You've been hired as an economic consultant by a price-taking firm that produces baseball caps. The firm already has a factory, so it is operating in the short run.
Robinson Crusoe can either fish (F) at a rate of 1 caught per 2 hours or pick Coconuts (C) at a rate of 1 picked per hour. He has 12 hours per day available for either activity. Describe his product
Determine net income for the period if beginning stockholders' equity is $19,000, dividends declared amount to $7,000, ending stockholders' equity is $37,000 and the corporation issued $1,000 of com
A contractor expects to have an annual taxable income of $400,000 from its regular business for the next 3 years. The contractor is considering buying a new piece of equipment that costs $115,000. T
You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales ($125 million last year) and a low marginal cost of producing the pro
If Martha finds $10,000 under her mattress and deposits it in a demand deposit, by how much may the deposit expand the total money supply Assume that the legal reserve requirement (required reserves
TC=200+6Q+0.5Q^2 MC=MTC/MQ=6+1Q at profit max, Q=12 and P=36 calculate output, price and economic profit (show how you get there) and point price elasticity of demand.
when the price of good x falls Rs 10 to Rs 9,the demand for good y increase from 20 kg to 25 kg. A) what is the cross elasticity of demand of good y for good x
the purchaser of the metal pipe will only accept deliveries of pipe where the diameters fall in the range of 1" +/- 0.0030". Using Chebyshev's Theorem, what is the minimum percentage of acceptable
After being the monopolist for awhile, there's a new firm entering the market. Both firms will be choosing output simultaneously (new firm has the same cost function) How many machines would you rec
Assume a natural monopoly with total costs C=500 20Q. Market demand is Q=100-P. a) Suppose that average cost pricing is employed. Find price, output, and the deadweight loss. b) Now consider two-par
Suppose the productivity of labor and capital are as shown in the accompanying table. The output of these resources sells in a purely competitive market for $1 per unit. Both capital and labor are h
If we have a demand curve which can be described by Pd= 72.33-1.76Q, and we have a starting price of $50, what happens to TR when the price falls to $40 Find whether MR is positive or negative
Suppose the demand and supply schedules for rental apartment in the city of Gotham are given below Monthly Rent $2500 $2000 $1500 $1000 $500 Apartment Demanded 10,000 12,500 15,000 17,500 20,000 Apa