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Rather than lump sum tax, now assume that government were to impose tax of 300 per unit. Again, determine profit maximizing price/output level pair?
How much revenue does owner make at current price?
Many people search out and buy "bargains" at garage and yard sales. Write down some implicit costs associated with this type of shopping.
Draw Jane's budget constraint. Provide values for the l- and c-intercepts.
Now assume that borrowing rate-but not savings rate-changes to 60%. Add Harold's new budget constraint to your graph for Part (a). Provide value for new current-consumption intercept.
Compute the aggregate quantity demanded when the price is $14?
Plot Chris's budget constraint. Illustrate the values for intercepts and the slope.
Compute profit-maximizing price and quantity of subscriptions for U.K. Compute profit-maximizing price and quantity of subscriptions for US. Indicate each on the suitable graph.
It is sometimes said that smart business manager ignores sunk costs. Explain whether your answer to b is consistent or inconsistent with idea that managers must ignore sunk costs.
What, if any, shortcomings arise from monopoly pricing strategy (efficiency and consumer surplus)?
Compute the price of each product if the firm decides to sell them separately?
Can you think of even more profitable bundling strategy?
Pass laws which give nurses more flexibility in paying back college loans.
Describe why Vera's preferences are of very special type here. How would you graph them?
Draw Paul's indifference curves for U = 5, U = 10, and U = 20.
Illustrate through some examples that every other way of assigning income provides less utility than does point identified in part b. Graph this utility-maximizing situation.
Ms. Fogg has $10,000 to spend on the trip, if she spends all of it, then her utility will be U (10000) = Log (10000) = 4.
Now consider new demand curve for flyswatters Q = 1000 - 50P, evaluate quantity demanded for following prices, sketch demand curve.
Find out, how following will affect slope of the output demand curve, and describe your results: Inter temporal substitution effect of real interest rate on current consumption increases.
When viewed on a graph, typical income constraint or budget line will slope up from left to right. True or False, and explain why?
Compute income elasticity of demand for this commodity at income of $10,000 and sales of 80,000 units.
By using what you have learned regarding the laws of supply and demand, describe to your friend how the market influences price.
Compute the marginal cost function. Determine quantity that minimizes average costs.
In doing so remember that demand function given above explains relationship between prices consumer pays and amount demanded.
Shaqueena's utility function is given by U= I1/2, where I signifies annual income in thousands of dollars. Is Shaqueena risk loving, risk neutral or risk averse?