2. Suppose John has the following demand for coffee per day: Cups of Marginal Coffee Value 1 $8 2 $6 3 $4 4 $2 Currently the regular price of coffee is $6 per cup. The local coffee shop offers a Coffee Lover's discount of 50% off the regular price of coffee. What is the maximum membership price, John is willing to pay for the Coffee Lover's discount?
Q: rue or False: The government securities purchased by the Federal Reserve (“the Fed”) in normal…
A: The US Federal Reserve manages the money supply through open market operations, which involve…
Q: Suppose a discriminating monopolist is selling a product in four separate markets in which demand…
A: Given, the demands in the monopolistic firms: Q1 = 300 – P1; P1 = 300 - Q1 Q2 = 200 – 0.5P2; P2 =…
Q: s the line 2 = 1-2t, y = 2+5t, z = -3t parallel to the plane 2x + y -z = 8? Give reasons for your…
A: As it is given to us x=1-2t y=2+5t z=-3t
Q: Complete the table and answer the following: 1. Sketch a graph of the table 2. Compute consumer…
A: Price Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost 20 0 0 --- 1000 --- 18…
Q: Given that fixed cost=230 and variable cost=12Q; the total cost of producing 30 units of output is?…
A: Total fixed cost = $230 Total variable cost = 12Q Units = 30 units Total cost = ?
Q: Investors typically use which of these ratios in their analysis of a company's earnings potential?…
A: The answers are: Price ratios Return ratios
Q: d. What was the growth rate of nominal GDP between 2019 and 2020? What was the growth rate of real…
A: (a) Nominal GDP in 2019=14×18+15×11=$417 and Nominal GDP in 2020=16×13+17×12=$412 (b) real GDP…
Q: Consumption expenditure Investment Government expenditure on goods and services Exports of goods and…
A: Gross Domestic Product (GDP) is defined as the monetary value of all final goods and services…
Q: Consider the following. dQ 0.96 此 (x-24,999)0.04 * 225,000 (a) Use the marginal propensity to…
A: Given information MPC functiondQdX=0.96(X-24999)0.04 where X≥25000when X≤ 25000. fully X will be…
Q: If current real GDP = $52 trillion and potential real GDP = $61 trillion, then the “GDP gap” = Group…
A: GDP measures the value of goods and services that are produced with in the country during a period…
Q: The management of a large fast food chain evaluates the supplier of their deep---frozen beef…
A: Standard Deviation Standard deviation in this condition implies to the variance that happens in the…
Q: According to the Keynesian ideas on Aggregate Demand, a macroeconomist would most likely expect…
A: Interest rate: - it is the percentage charge on the principal amount by a lender to a borrower
Q: Interest rate spread Suppose that a 5-year Treasury bond pays an annual rate of return of 2.9%, and…
A: An interest rate can be defined as the amount charged by a lender to a borrower for any sort of…
Q: Number of Votes 63 43 A reality show is considering three cities for their new season: Philadelphia…
A: Answer is given below
Q: S Why is а perpetuity? share in equitis considered a
A: answer to question no. 5. - Share in equity is basically an investment in the operations of a…
Q: A company is investigating three alternatives as follows: Ho Alternative A Initial cost $60,000…
A: Given cash flow information Alternate A Initial cost=$60000 Annual benefit=$32000 Salvage…
Q: 10 9 8 7 6 5 4 3 2 1 AS AD Tools -9 QE QF
A: Introduction As measured by output, GDP is neither larger nor lower than GDP as measured by demand.…
Q: Merger between a firm that provides a consumption good and its raw material supplier Market sharing…
A: Market: The exchange of products and services that occurs as a consequence of buyers and sellers…
Q: Do you think it is possible to draw a clear distinction between private and public goods? Which of…
A: There is a clear-cut distinction between the private good and the public good. There is different…
Q: SLO-1.1. In centrally planned (command) economies the decides what goods and services will be…
A: There are different types of economies according to which people make their economic activities,…
Q: 5) (KEY QUESTION) Consider the following data assuming that these are the only products produced and…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Third degree price discrimination is the same as O personalized pricing. O personal discrimination.…
A: The measure that depicts charging different price levels for the same services or goods that are…
Q: Retirement Benefits. How are the retirement benefits under Social Security calculated? Describe some…
A: 1. The most common method for calculating Social Security benefits is to use "average indexed…
Q: Possibility Movie Tickets (M) Chocolate Truffles (C) (units) (units) A 60 0 B 40 35 с 20 45 D 0 50…
A: Production possibilities frontier shows different combinations of goods that a country or individual…
Q: Which of the following is true of market social equilibrium if third parties, people outside the…
A: Externality refers to spill-over effect of a good on third party which is not involved in either…
Q: There are two consumers and two goods (A and B) in a competitive economy. At the competitive…
A: Individuals (consumers) directly involved in the acquisition, use, and disposal of economic goods…
Q: Decisions for Tomorrow How much does M1 and M2 change in the following situations? a. $300 is…
A: In an economy, M1 money supply includes all the monetary instruments that are readily available to…
Q: Consider the following model for the production of refined oil: MSC = 10 +0.5Q; MEC = 0.30:…
A: MSC= 10+ 0.5Q; MEC = 0.30: MSB = 30-0.3Q; MEB = 0.
Q: According to the lectures, which of the following ideas are representative of (neo)classical…
A: According to neoclassical theory, a firm's level of investment should be determined solely by its…
Q: Which of the following are some of the reasons that make economic evaluation of public projects more…
A: When talking about the differences in public projects and private projects, it can be said that…
Q: What are some applicable employment related laws in Canada? (i.e. equal employment, compensation,…
A: here we find some applicable employment related laws in Canada (i.e. equal employment,…
Q: agree rent Whas On renting my property of $10000 my دا for а principal over 5 years, r = 3% annually…
A:
Q: Explain the importance of reading a classification tree effectively? How could this benefit an…
A: This philosophy is all the more usually known as a classification tree effectively from information…
Q: Which of the following is a valid argument for an independent Fed? The Fed needs freedom to be…
A: In the United States, the Federal Reserve is the monetary authority that has the responsibility to…
Q: QUESTION 8 Covered interest rate parity differs from uncovered interest rate parity in the following…
A: A theoretical situation in which the relationship between interest rates and the spot and future…
Q: What are the three main sources for economic growth in any economy?
A:
Q: If negotiable orders of withdrawal were $2793 higher and saving deposits were $3602 higher, M2 would…
A: Money Supply refers to the quantity of money supplied in an economy.. The money supply comes in many…
Q: The Shell Corporation has a 34% tax rate and owns a piece of petroleum-drilling equipment that costs…
A: According to the question, we need to calculate the present worth of cash flow. Where interest rate…
Q: The long-run aggregate supply line will necessarily shift to the right when Group of answer choices…
A: A long-run aggregate supply curve is vertical at the level of production the economy can produce…
Q: Counter-cyclical fiscal policy” intends to ... Group of answer choices a. Stop the business cycle b.…
A: The answer is - d. smooth out the business cycle
Q: 7) Refer to the graph below. Which move leads to a decrease in revenue? 11.0 100- a) The move from A…
A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…
Q: A decrease in a country's capital stock occurs when Multiple Choice ____ businesses sell machinery…
A: Fixed Capitals: Fixed capitals are those capitals that are used for a longer time and play an…
Q: Suppose the Fed decided to purchase $100 billion worth of government securities in the open market.…
A: If Fed purchases government securities in the open market, the money supply in the economy…
Q: 3 2 Variable Input the diagram of product curves suggests that Multiple Choice when marginal product…
A: In the above diagram, curve 1: Marginal Physical Product curve. Curve 2 : Average Physical Product…
Q: The maker of a leading brand of low-calorie microwavable food estimated the following demand…
A: Given, Assume the following values for the independent variables: Q = Quantity sold per month P (in…
Q: Why might a firm have monopoly power even if it is not the only producer in the market? O A. There…
A: The markets are the place where the buyers and the suppliers of various products meet and interact…
Q: In one way, the impact of immigration and inward foreign direct investment are structurally the same…
A: Labor refers to the portion of the population that works or are looking for employment. It is also…
Q: 3) A Gillette Stadium vendor sold 500 hamburgers at $10 each and 750 hot dogs at $5 each during…
A: Cross price elasticity measures the percentage change in quantity demanded of good 1 with respect to…
Q: What is the present equivalent of $20,000 to be received in 10 years when the interest rate is 5%…
A: Amount =P×1+i100t P=principal i=interest and t=time Here, P=present value and Amount=Future value…
Q: On January 10, 2017, a man in Lebanon, Virginia, frustrated with the DMV bureaucracy, paid his DMV…
A: Answer is given below
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A friend of yours is considering two cell phone service providers. Provider A charges 120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges 1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation QD = 150 50P, where P is the price of a minute. a. With each provider, what is the cost to your friend of an extra minute on the phone? b. In light of your answer to (a), how many minutes with each provider would your friend talk on the phone? c. How much would she end up paying each provider every month? d. How much consumer surplus would she obtain with each provider? (Hint: Graph the demand curve and recall the formula for the area of a triangle.) e. Which provider would you recommend that your friend choose? Why?Can you think of any examples of successful predatory pricing in the real world?Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as the incumbent tries to bleak into the market by selling 4,000 units of output. Estimate from the graph what the new firms average cost of producing output would be. If the incumbent continues. to produce 6,000 units, how much output would the two films supply to the market? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn? Figure 9.2 Economics of Scale and Natural Monoploy
- A demand curve is given by p = 660-3x. Assume you must pay salaries totalling 8000$ in a month. Also, it costs $110 to manufacture one TV. Find the range of prices you can charge and still be in the black: The lowest price you can charge is ___________ and the highest is ___________Question#5Nile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B(sales per week) (sales per week) Volume of sales beforethe 10% discount 1.55 million 1.50 million Volume of sales afterthe 10% discount 1.65 million 1.70 million Using the midpoint method, calculate the price elasticities of demand for group A and group B.Explain how the discount will affect total revenue from each group.Suppose Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?14. The only DVD rental club available to you charges $4 per movie per day. If your demand curve for movie rentals is given by P = 20 – 2Q, where P is the rental price ($/day) and Q is the quantity demanded (movies per year), what is the annual maximum fee you would be willing to pay to join the club?
- Nile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B(sales per week) (sales per week) Volume of sales beforethe 10% discount 1.55 million 1.50 million Volume of sales afterthe 10% discount 1.65 million 1.70 million A. Using the midpoint method, calculate the price elasticities of demand for group A and group B. B. Explain how the discount will affect total revenue from each group.C. Suppose Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?Nile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B(sales per week) (sales per week) Volume of sales beforethe 10% discount 1.55 million 1.50 million Volume of sales afterthe 10% discount 1.65 million 1.70 million A. Using the midpoint method, calculate the price elasticities of demand for group A and group B. B. Explain how the discount will affect total revenue from each group. C. Suppose Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?2. The Ice Cream Lovers Society decided to open up an ice cream stand during the summermonths. They calculated that it would cost them $0.80 to make a scoop of ice cream and$350 a month to operate the stand. They hired a research team who determined that theprice-demand function given in dollars isp x x ( ) = −8 0.02wherexis the number ofscoops sold.a. Find the revenue functionR x( )b. Find the value ofxthat produces the maximum revenue algebraically.c. Find the maximum revenue algebraically.d. Find the price per scoop of ice cream that produces the maximum revenuealgebraically.e. Find the cost functionC x( )that describes the monthly costs of operating the icecream stand.f. Find the break-even points to the nearest scoop algebraically usingR x( )andC x( ) .g. Find the profit functionP x( ).
- You are working for the chiefeconomist at Microsoft. Microsoft’s only significantcosts to producing and distributing a new version itit’s operating system is $30,000 in wages to itsemployees, $15,000 in computer testing, and$5,000 in utilities. Microsoft’s marketing department estimates that thedemand a new version it it’s operating system is Q = 320 – 0.5 P, with Pmeasured in dollars.What price should Microsoft charge for a new version it it’s operatingsystem? What profit should Microsoft expect?Another strategy Alex can increase his economic profit is to set an all-or-nothing price lower than the monopoly price. The all-or-nothing pricing strategy requires a consumer to buy all the apples at a given price. If Alex sets the all-or-nothing price at $6.25, calculate the economic rent andconsumer surplus under all-or-nothing pricing for different quantities. What is the optimal all-or- nothing quantity Alex should sell to maximize economic profit?Gliberace's Fashion Accessories of Las Vegas produces gem-stone encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 5(QLA + QSF). Demand for Gliberace's stones in the two cities is given by QLA = 70 - 2PLA and QSF = 55 - PSF. If Gliberace price discriminates between the two cities, what will its maximum profits be? $975 $750 $825 $1,175 $1,075