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Using concept of marginal rate of substitution, describe why two sets of curves are different from each other.
Using survival constraint coupled with his budget constraint tell me what bundle (amounts of x1 and x2) maximizes his utility.
What is level of fertilizer that maximizes profits? How do you know?
Compute Marginal Rate of Substitution if you were to go from Combination A to Combination B.
Explain price elasticity of demand by indicating whether it. would be elastic, inelastic, or unitary.
Determine his optimal consumption bundle? Describe your reasoning.
If I = 15000 and P = 150, compute point elasticity of price and of income.
Imagine opera has capacity of 3000 seats and that all costs are fixed. If they can discriminate between two groups, determine optimal price to charge to each group and how many tickets will each
Explain a sequential game facing your firm, and represent it in extensive or tree form. Calculate and analyze equilibrium of the game.
If price were to be decreased to $27 and average attendance increased to 60,000, what is the price elasticity?
Assume the firm dropped price to $2.50. Would this be beneficial? Describe. Illustrate your answer using a demand schedule and demand curve.
What price must firm charge if it wants to maximize it profit in short run?
Use demand schedule that is presented in table below to find out optimal rate of production and price when firm has constant marginal cost of $10 per unit.
Residents of Uurp consume only pork chops (X) and Coca-Cola (V). Utility function for the typical resident or Uurp is given by Utility « U(X,Y) = √(X - Y).
What kind of preferences are these? Solve for expression for this consumer's MRS. Draw 3 different indifference curves for this consumer.
Now assume a =1/2. Further, assume M=12, P1=2 and P2=2. Sketch the budget set and show the optimal point selected by this consumer (using your demands in a)).
Economist estimated that cost function of single-product firm is C (Q) = 50 + 25Q + 30Q2 + 5Q3. Based on this information, find out: Variable cost of producing 10 units of output.
Determine the market rate of substitution between food and "all other goods"? on same graph, illustrate how food stamp program alters average consumer's budget line.
If there has been 10 percent increase in consumer income between two periods, determine the percentage change in demand for foreign travel? For tobacco products? For flour?
Market supply and demand functions for product traded on a perfectly competitive market are given below. Compute the equilibrium price and quantity.
Use general formula for elasticity, not midpoint or arc elasticity formula. Illustrate your arithmetic and label your result as elastic or inelastic.
If you accept offer compute DD's resulting profit. Also, compute the optimal level of output (meter dug) and the level of labor usage.
Describe economic significance of Lagrangean Multiplier and calculate its value.
Q signifies number of passengers (in thousands) per year, P (average) ticket price and I the U.S. national income. Find out price elasticity and income elasticity of demand.
Find out pen to firm's revenue if it decided to charge price below $154?