Q: d. What plant size would the firm need in order to achieve minimum efficient scale (MES)?…
A: The long run average cost is a function of output and it tells the minimum average cost required to…
Q: What is the minimum bid price the firm should set as a sale price for the blocks if the firm were in…
A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…
Q: Use the following information to answer question 22-23. Number of Workers Hired 4 5 6 7 8 [!!!! a)…
A: Diminishing marginal returns, also known as the law of diminishing returns, is an economic principle…
Q: Asap Wichita — Farmers in Kansas, the biggest US producer of wheat, are abandoning their crops…
A: Demand refers to quantity of a goods or service that a consumer is willing and able to buy at a…
Q: The relevant CCA rate for the capital expenditures is 15%. Assume assets are never sold. a. For this…
A: Net present value or NPV can be defined as the capital budgeting tool that is used to make a…
Q: Question 2: Ramsey Model with Fiscal Policy. Consider a Ramsey economy that is on its balanced…
A: Incorporating the impact of governmental actions on economic results, the Ramsey model with fiscal…
Q: Introduction (where you will explain the background of the dollar's emergence as a global currency…
A: The US dollar's status as the world's reserve currency began after World War II, when the Bretton…
Q: Assume that the parameters of a particular economy are as follows: MPC = 0.6, MPM = 0.1. What is the…
A: Aggregate demand is the sum of consumption, investment, government spending and net export. AD = C +…
Q: Wage (dollars per hour) Minimum wage W₂₁ 0 L2 L1 L3 Supply of workers Demand for workers Quantity…
A: Minimum wage refers to the legally mandated lowest hourly wage rate that employers are required to…
Q: Amber bakes muffins and cookies to sell at the market. If she bakes more cookies and fewer muffins,…
A: Marginal benefit can be described as the additional satisfaction, utility, or value gained from…
Q: Assuming that there were other services providers in Nigeria besides FiberOne before the entry of…
A: Under a monopoly, a single seller faces the entire market demand on his own. Here, the seller…
Q: Assume that two companies (A and B) are duopolists who produce identical products. Demand for the…
A: Oligopoly is a form of market where there is only a limited number of firms or suppliers who have a…
Q: 1.Which of the following best describes the demand of a flu vaccine? A.Demand for flu vaccine is…
A: Demand refers to the quantity of a goods or services that a consumer is willing and able to buy at a…
Q: The market demand curve for mineral water is given by P=20- Q. If there are two firms that produce…
A: In the Cournot model, there are two firms and these firm competes on the basis of output. In…
Q: Find an article online illustrating a change in equilibrium price or quantity in some market within…
A: ***According to guidelines, external links or citations cannot be used in the answer, so…
Q: When the Federal Reserve sells a government bond to a primary dealer, reserves in the banking system…
A: When the Federal Reserve sells a government bond to a primary dealer, reserves in the banking system…
Q: Suppose Scooter's Scooters is currently producing 500 scooters per month in its only factory. Its…
A: For Blank 1 - SRATC will be $720For Blank 2 - 3 (Three) factoriesExplanation:ATC is $720 where no.…
Q: The table below shows average cost data for three different-sized plants-1, 2, and 3-which are the…
A: Economic capacity is the output level corresponding to the minimum average cost of a plant. The…
Q: Given the following: Profits of falsely claiming high quality with no signal are 140. Profits of…
A: An asymmetrical information scenario arises when one of the participants in a business deal has a…
Q: Draw a demand curve, marginal revenue curve, marginal cost curve, average total cost curve, and an…
A: The marginal revenue curve represents the change in total revenue resulting from the sale of an…
Q: You are trying to estimate the real interest rate for the mining industry products an proceed as…
A: The real interest rate can be defined as a measure of the return on an investment or the cost of…
Q: A team sells two categories of tickets, gold seats and purple seats. Premium fans value gold seats…
A: Under a monopoly, a single seller faces the entire market demand on his own. Here, the seller…
Q: When Starlink decides to offer it’s internet services by using satellite technology as opposed to…
A: The basic problem that an economy has to face is the problem of scarcity. The meaning of scarcity in…
Q: Problem 01-03 (algo, with video solution) To earn extra money in the summer, you grow tomatoes and…
A: Selling price: $0.15 per poundMarginal cost: $0.50Marginal revenue refers to a rise in revenue those…
Q: The table below depicts the daily output, price, and costs of a monopoly dry cleaner located near…
A: TR is the total income that is generated by an entity within a given time frame. TR can be used to…
Q: How can risks be measured for a company like Publix supermarket, and what rules can help managers…
A: In the context of a company, risk refers to the potential for negative events or outcomes that could…
Q: Starlink's Price Strategy High Price Low Price FiberOne's Price Strategy High Price Starlink+$200…
A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…
Q: the Federal Reserve is trying to reduce its balance sheet by making open market sales. Use the…
A: Open market sales refer to the selling of government securities by the central bank (in this case,…
Q: When the expected profit ________, investment demand ________ and the demand for loanable funds…
A: The loanable funds market refers to the interaction between lenders (savers) and borrowers…
Q: Annika spends all of her income on golf and pancakes. Greens fees at a local golf course are $10 per…
A: Goods and budgetary constraints are closely linked. A budget constraint is the maximum sum of funds…
Q: Question 15 Which of the following would be found in the goods market? a) Fibre optic cables or…
A: The goods market refers to the market where final goods and services are bought and sold. It is the…
Q: Draw and label a graph that depicts a linear, downward-sloping demand curve for beef brisket. Assume…
A: A demand curve shows the relationship between price of a good and quantity demanded. The demand…
Q: How Bangladeshi trade policy become updated. Write this in 1500 word. And also please put the…
A: Trade Policy: Trade policy refers to a set of rule, regulations, and measures implemented by a…
Q: When a child is born, the parents receive gifts of $5000 which they invest at 6% interest. Each year…
A: Formula for return= PA(1+r)^nn=time period in yearsPA=principal amountr=interest rates
Q: The table below for the United States and Mexico shows maximum feasible production rates per acre of…
A: Comparative advantage is an economic principle that explains the benefits of trade between two…
Q: Suppose that the pricing strategies for FiberOne and of Starlink are shown in the table below. They…
A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…
Q: If Federal Reserve notes and coins are $765 billion, and banks' reserves at the Fed are $8…
A: Banks' reserves, also known as reserve balances, can be defined as the funds held by commercial…
Q: correct
A: The solution provided is an detailed one and has been reviewed again.
Q: Using the LAPLACE method, what will be the Payoff value for form Joint venture?
A: The Laplace criterion is a decision-making technique used under conditions of uncertainty. It uses…
Q: Brooks Books' bonds have 16 years remaining to maturity. Interest is paid annually; they have a…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Figure 20.4 Exchange rate (S/C) $1.05 10000 1.00 Supply D₂ D₁ Quantity of euros traded per day Refer…
A: An exchange rate is the rate at which one currency can be exchanged for another currency. It…
Q: Two people have $4 to divide between themselves. They use the following process to divide the money.…
A: A field of economics called game theory examines how people make strategic choices when competing.…
Q: A new production technology for making vitamins is invented by a University professor who decides…
A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…
Q: 3. Consider an individual whose income stream is (200,120) in a situation where he is faced with the…
A: To determine the investment decisions and consumption levels for the individual, we need to…
Q: "According to Keynesian theory, an increase in the money supply can cause interest rates to fall…
A: According to Keynesian theory, an increase in the money supply can indeed cause interest rates to…
Q: Give a real-word example from social media that demonstrates an understanding of the fiscal policy,…
A: The economy's output is not always at the potential level in the short run causing some adverse…
Q: Apply what you've learned The table below shows the quantities of gas demanded and supplied at…
A: Tax is a compulsory financial charge or levy imposed by the government on individuals, businesses,…
Q: Explain the market structure that a service oil company thst leases vessels and jack up barges to…
A: Market structure alludes to the organizational and competitive qualities of a market, including the…
Q: A farmer produces com, which is valued at $1.00. The corn is then sold to a miller, who turns it…
A: A primary method for calculating the GDP is the value-added method. It focuses on the additional…
Q: The Orange Corporation has a new product, Alpha, it is planning to launch. Market research has led…
A: Profit optimization refers to the process of maximizing the financial gain or surplus achieved by…
Please no written by hand solutions and no image.
3. Given the following information; solve the consumer's problem by finding the optimal demand functions for X and Y:
U(X, Y) = X ^ (1/3) * Y ^ (2/3)
Also, you are given the following initial market conditions:
Px =\$6
Py =\$4
M =\$360
a. Setup the Optimization Problem
b. Find the First Order Conditions of Optimization
c. Find X ^ * and Y ^ *
d. Graph the solution and explain the economic intuition behind the graph: i.e. What are the conditions met at the optimal bundle? Introduce another consumption bundle and explain why it is NOT the optimal.
e. If income doubles, what will the new x ^ * and Y ^ * be?
f. If your preferences change and you prefer X and Y equally; illustrate how the consumer's optimization problem might change and solve for the new X ^ * and Y ^ * under your new model.
Step by step
Solved in 3 steps
- The demand for good X is given byQXd = 6,000 − (1/2)PX − PY + 9PZ + (1/10)MResearch shows that the prices of related goods are given by Py = $6,500 and Pz = $100, while the average income of individuals consuming this product is M = $70,000. a. How many units of good X will be purchased when Px = $5,230?b. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X. Instruction: Enter all values as integers, or if needed, a decimal rounded to one decimal place. Demand function: ______ − _____ PXInverse demand function: PX = _______ − _______ QXdInstruction: Use the tool provided 'D' to graph the inverse demand curve from QX = 0 to QX = 6,000 (two points total).No written by hand solution Suppose that the market for video games is competitive with demand function Qd = 170 – 4p + 2Y + 3pm – 2pc, where Qd is the quantity demanded, p is the market price, Y is the monthly budget that an average consumer has available for entertainment, pm is the average price of a movie, and pc is the price of a controller that is required to play these games. Given that Y = $100, pm = $30 and pc = $30, use Excel to calculate quantity demanded for p = $10 to p = $80 in $5 increments. Using Excel’s spreadsheet Find Qd = ________ when P=$30. Find Qd = ________ when P=$45. Now, Y increases to $120. Re-calculate the demand schedule and find Qd = ________ when P=$20. Let Y = $100 again, but pm increases to $40. Re-calculate the demand schedule and find Qd = ________ when P=$25. Let Y = $100, pm = $30, and pc increases to $40. Re-calculate the demand schedule and find Qd = ________ when P=$50.Assume the demand function for good X can be written as: QX = 30 - 3PX + 2PY + 0.2I Where PX is the price of good X PY is the price of good Y I is the consumer income. a) Based on the demand curve above, is X a normal or inferior good? b) Based on the demand curve above, what is the relationship between good X and good Y? c) What is the equation of the demand curve if consumer incomes are $40,000 (use $40, income in thousands) and the price of good Y is $35?
- Use the following general linear demand relation: Qd = 100 − 5P + 0.004M − 5PR where P is the price of good X, M is income, and PR is the price of a related good, R. What is the demand function when M = $50,000 and PR = $10? Qd = 350 − 5P Qd = 300 − 5P Qd = 200 − 5P Qd = 100 − 5P None of the choices is correct.There are three individuals in an economy. The demand functions for these individuals are given as follows: X1 = 22 - 2P, X2 = 8 - P, X3 = 28 - 2P. What is the market demand when P = 10? (a) X = 30 - 3P (b) X = 50 - 4P (c) X = 28 - 2P (d) X = 36 - 3P (e) X = 58 - 5PIf the demand function face by the consumer for good X is given by X=15+MP-120 Where X = Quantity demanded, M = income and P = Price of product X. Assume his original income is Kshs. 3200 per month and price of good X has increased from Kshs. 10 per unit to Kshs. 20 per unit. Calculate the magnitude of total effect (TE), substitution effect (SE) and income effect (IE) resulting from this change in price.
- Question #2 Consider the following demand function for frozen dinners where QD is the quantity of frozen dinners demanded per week, P is the price per frozen dinner, PF is the price per fast food meal, Y is the average yearly consumer income, and A is the number of advertisements for frozen dinners. Demand Function for Frozen Dinners: QD = 1,000 – 10P + 20PF – 0.01Y + A Suppose that a frozen dinner sells for $4, a fast food meal sells for $6, average yearly consumer income is $50,000, and that there are 20 advertisements for frozen dinners. Calculate and interpret the income elasticity of demand. Calculate and interpret the cross-price elasticity of demand with respect to fast food meals.Given the following situations, determine the effect on Qd or D or Qs or S for electric cars. Write ↑ Qd, ↓ Qd, ↑ D, ↓ D, ↑ Qs, ↓ Qs, ↑ S, ↓ S or no effect. For each answer, graphically illustrate using the corresponding demand curve or supply curve. Show graphical table. Label properly: Assume that this is a normal good, the income of the consumers increased. Reduction of charging stations and infrastructures for electric vehicles. Stricter regulations or compliance requirements for electric vehicle production.The market for lemon has 10 potential consumers ,each having an individual demand curve p=101-10Q where p is price in dollars per cup and Q is the number of cups demanded per week by the ¡th consumer.find the market demand curve using algebra . Draw an individual demand curve and the Market demand curve . What is the quantity demanded by each customer and in the market as a whole when lemon is priced at p=$1/cup?
- Be fast Suppose there are three (3) consumers in a market for bottles of perfume; Mutumbu, Jasanu and Julius The individual demand for perfumes for each of these consumers is given as 10 bottles for Mutumbu, 15 bottles for Jasanu and 25 bottles for Julius at $60 per bottle for perfume. Thus, the market demand for perfumes if the market price is $60 is: (a)40 bottles (b)60 bottles (c)80 bottles (d) None of the aboveDavid's utility function for good X and Y is given by U (X,Y) =X2y3. Where px,py and I are the price of good X, price of good Y and consumer income respectively. E). Suppose david faces a new utility such as U(X, Y)=25x0.2 Y0.75 for consuming commodity X and Y, redo question b and c. Derive the demand function for good X and Y What combination of X and Y maximizes the consumer at I=100,px=4,and py=5 F). Suppose david faces another new utility function such as U (X, Y) =15xy2 for consuming commodity X and Y,redo question b and c Derive the demand function for good X and Y What combination of X and Y maximizes the consumer at I=100,px=4,and py=5Given the following demand function for beef (kg), P = 200 – 5Q i) By how much would the price have to fall for consumers to be willing to buy 1 more kg of beef per day? ii) If the price decreases by N$0.9, by how much will the demand changed?