Maximization Problem

c. Explain how the location of each curve graphed in question 7b would be altered if (1) total fixed cost had been $100

a) An importer of antiquities knows that he can sell bowls and carved figurines to the domestic market. If q1 is this number of figurines sold, their price will be $(60 − 2q1 ). If q2 bowls are sold, $(10 − q2 ) will be the price of bowls. Figurines cost $16 and bowls $4 to the importer and fixed costs are $200. i) How many each of figures and bowls should be sold to maximise profit. ii) Is this indeed a maximum? Justify using second order conditions. iii) What price is

1. When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is ( )

You just won a $100 shopping spree at a store that sells only DVDs and CDs. You are trying to determine what combination of these two goods would maximize your utility. The price of CDs is $10 and DVDs are $20. Below is the total utility you receive from consuming these goods.

Question 35 Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been chosen as the base year. In 2002, the basket’s cost was $76.00; in 2004, the basket’s cost was $79.50; and in 2006, the basket’s cost was $85.00. The value of

2. Refer to the above table to answer this question. Suppose that Mia has a budget of $7 and the price of a litre of soya milk is $1, what is the maximum quantity that Mia might purchase?

Warren Company makes candy. During the most recent accounting period, Warren paid $3,000 for raw materials, $4,000 for labor, and $2,000 for overhead costs that were incurred to make candy. Warren started and completed 10,000 units of candy, of which 7,000 were sold. Based on this information, Warren would recognize which of the following amounts of expense on the income

For this assignment, I am going to work with two-variable inequalities and demonstrate the practical application of these inequalities. I am going to use a graph that shows the number of TV’s on the left side and the number of refrigerators on the bottom. Of course this would mean that my x axis is the bottom, and my y axis on the left. The line shows the combination of TV’s and refrigerators that the truck can hold.

____ 16. If two goods are ____, then an increase in the price of one leads to ____ in the quantity demanded of the

The figure below shows a portion of a consumer’s indifference map, and a budget line. The consumer’s income is $1,200 and the price of Y is

1. If a coffee company purchases paper cups at a cost of x cents for a package of ten and lids at a cost of y cents per dozen, which of the following represents its material cost, in cents, of c cups of coffee?

Breakfast =$3, Gas+ $24, Lunch= $8, Pharmacy expenses = $12, Dinner +$10. Total = $67

a.) Draw and properly label the demand and supply graphs (this means you must label the axes and any lines you include on the graph).

12) Suppose that we force the production of one unit of product A. The new objective function value will be

a) Draw Brennan's average total, marginal revenue and marginal cost curves. (Hints: calculate total revenue (P* times Q) first, and then calculate MR)