a. When the production level is at 40,000 units, use the LaGrange process to determine how much they should spend on labor and capital.                                b. If the purchasing agent requests an additional unit (40,001st unit), what is the minimum price you should charge on that specific unit? (Note: determine this without re-solving the Lagrange problem itself.)

Q: In the IS/LM model, if the Keynesian expenditure multiplier is 2.76, the investment sensitivity to…

A: The money demand curve is the curve that shows the inverse relationship between interest rate and…

Q: 2. Say we have a profit maximizing firm that produces one output good with two factor inputs. The…

A: Short-run production function shows the output by using one factor of the production variable and…

Q: q 0 1 2 3 4 5 6 TFC $5 5 5 5 5 5 5 TVC $0 3 5 9 16 Marginal revenue is 25 36 MC P= MR $5 5 5 5 5 5 5…

A: Total cost is the sum of fixed cost and variable cost.  Marginal cost is the cost of producing an…

Q: Suppose you are using Present Worth Analysis and the useful life for project A is 17 years and for…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Assume that the required reserve ratio is 7.00%. The bank manager decides to lend Billy Bob Smith…

A: Here, it can be seen that the the total amount deposited in the bank is given as $3201.00 and…

Q: The following graphs plot the long-run equilibrium situation for an economy. The first graph plots…

A: The natural unemployment rate reflects the rate of unemployment corresponding to the potential level…

Q: 3. Profit maximization using total cost and total revenue curves Suppose Frances runs a small…

A: Total Revenue: The total revenue is the amount that comes after multiplying the selling price with…

Q: The CARES Act of 2020 increased disposable income by $600 billion. If consumers spent $400 billion…

A: Given  Due to CARES act of 2020, increased disposable income ∆YD=$600 Due to increases in disposable…

Q: Betty is looking for a job. She considers job opportunities in two cities. Bettyís utility is given…

A: expected utility of city 1 can be seen as follows -  V1 = α(y1 - x1) + (1 - α)(1 + y1 - x1) expected…

Q: In the graph on the right, the demand for syrup has changed because the price of frozen waffles has…

A: Cross price elasticity measure the change in quantity of one good due to the change in price of…

Q: 5. Profit maximization and shutting down in the short run The following graph plots daily cost…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Q: The government passes a new law that allows businesses to receive wage subsidies, then:     Supply…

A: Wage subsidies to business is the amount given to businesses for hiring workers.

Q: IE 5545 VCG Mechanism Vickrey-Clarke Groves (VCG) mechanism. Four roommates are considering the…

A: VCG (Vickrey-Clarke-Groves) is a mechanism used in mechanism design, which is a field in economics…

Q: A drug store is looking into the possibility of installing a "24/7" automated prescription refill…

A: Given that, Projected increase in revenues = 20,000 Expected annual costs = 5000 Depreciation method…

Q: 7. Price discrimination and welfare Suppose Clomper's is a monopolist that manufactures and sells…

A: In a single price monopoly, demand curve and marginal revenue are downward sloping. Marginal revenue…

Q: What type of market environment do firms producing this product of honda operate in? Perfectly…

A: Oligopoly is a market structure in which a few large firms dominate the market and compete with one…

Q: Kate and Jon Alden are 37 years old and have one son, age 5. Kate is the primary earner, making…

A: Insurance is a risk management tool that provides financial protection to individuals and…

Q: You are given the following information about the transactions of a company: Wages paid to workers =…

A: To find the value added by the company in the given case, one can use the income method because…

Q: 9. An engineer is considering the purchase of an annuity that will pay $1000 per year for ten years.…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: T/F National income is studied under macroeconomics.

A: National income is the whole cost of all goods and offerings produced within a country's borders in…

Q: A firm's cost function is given by C(x,y)=2x²+y²+2, where two outputs are produced, x and y. What…

A: The Hessian matrix is a square matrix of second-order partial derivatives of a function with respect…

Q: Two pieces of equipment are being considered. Machine A costs $1,000 and has a useful life of 8…

A: NPV stands for Net Present Value, which is a financial measure used to evaluate the profitability of…

Q: In order to remain solvent and continue to support Americans, what are the goals of the Social…

A: The Social security administration (SSA) is a U.S. authorities agency that administers the Social…

Q: When farmers fertilize their fields, the nitrogen from the fertilizer can get washed into streams…

A: Supply function P=3+0.5Q Demand function P=24-Q MEC=0.50Q

Q: The policyholder hit another vehicle as he swerved to avoid a hubcap lying in the middle of the…

A: Deductible: The sum of cash that an individual has to pay on their own before their insurance…

Q: Maria manages a bakery, that specializes in ciabatta bread, and has the following information on…

A: The profit-maximizing level of output is the output level at which the marginal revenue is equal to…

Q: Roulan has wealth of $40,000 as long as his business does not burn down. However, there is a 50%…

A: Actuarially fair premium=probability of loss*Size of loss Risk premium=expected value of the…

Q: N f2 k Assume that 25 years ago your dad invested $300,000, plus $26,000 in years 2 through 5, and…

A: Capitalized cost in economics refers to the total cost of an asset that is spread over its useful…

Q: This question addresses the impact of saving on an economy by examining what happens if tax laws…

A: In the market for loanable funds, interest rates are determined by supply and demand. The demand for…

Q: The director of a theater company in a small college town is considering changing the way he prices…

A: There is a theater company. The director of the company has hired an economic consulting firm to…

Q: The downward inflexibility of money wage rates is called:     Price Floor      Price Ceiling…

A: Recession leads to downward inflexibility of money wage rates as per Keynesian view. This implies…

Q: How much can Sheila borrow on a credit card charging an APR of 17% over a period of 5 years if she…

A: APR, which stands for Annual Percentage Rate, is a composite of various charges and interest you…

Q: Analyse how a Neoclassical version of the labour market would indicate that, in equilibrium, all…

A: The labour market describes how businesses and employees interact to determine a workforce's…

Q: Home is as described in problem 1. There is now also another country, Foreign, with a labor force of…

A: Unit of labour force = 800 unitsGoods Produced are apple and banana. Foreign’s unit labor…

Q: if we define the war in Ukraine and the energy crisis as conditions of adverse supply disturbances,…

A: Monetary policy aims to stimulate economic activity from the demand-side whereas fiscal policy aims…

Q: 12 11 10 Price MR Supply Demand 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Quantity Use the figure above. What is…

A: Producer surplus represents the difference between the price that producers are willing and able to…

Q: Connie has a monthly income of $8000 that she allocates among two goods; meat and potatoes. Suppose…

A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: 5. There are two types of used cars, high quality and low quality. Buyers cannot distinguish the two…

A: The asymmetric information exists where the buyers and sellers do not have equal information. The…

Q: Assume that the economy is in a recession and demand for labor is falling. Assume that wages are…

A: Labour market: labour market is a market where the firms and households interact. The firms demand…

Q: A certain beverage company provides a complete line of beer, wine, and soft drink products for…

A: "since you have posted multiple questions , we will solve the first question . To get answer for the…

Q: Refer to the above Figure. At the price P1, the consumer surplus would be a. BDG O b. ABC O C. FAG…

A: Equilibrium Price: The term equilibrium price refers to the price that is derived from the…

Q: You can afford $200 per month car payment. You've found 3 years loan at 2.2% annual interest rate,…

A: The annual interest rate can be expressed as a simple interest rate or a compound interest rate,…

Q: Suppose the market for wind chimes is a competitive market. The following graph shows the daily cost…

A: When there are many producers in a market and no producers are in control of the price of the good,…

Q: Suppose that the demand curve for cheddar cheese is given by P = 100 - 3Q, and the supply curve is…

A: Producer surplus is a measure of the difference between the amount that producers receive for their…

Q: 1. The nation of Ectenia has 20 competitive apple orchards, all of which sell apples at the world…

A: Marginal product is a measure of the additional output that is produced by adding one more unit of a…

Q: The following table shows four nominal exchange rates expressed in Canadian dollars per unit of the…

A: Exchange rate implies the value of one currency expressed in terms of another currency. In other…

Q: (a) Draw and show the supply of export goods and the demand for import goods in relation to the two…

A: International trade refers to the exchange of goods and services across national borders. Countries…

Q: If occupation A pays more than occupation B, as long as there is a movement between the occupations,…

A: In the wage market, the labor supply their services to the firms. While the firm demands labor…

Q: Answer below questions with reference to the following figure, which reports population change in…

A: Population pyramid is the graphical representation of the population of a country or region based…

Q: A hospital in NYC area bought a diagnostic machine at a cost of $40,000. Maintenance cost is…

A: Economic life refers to the useful life of an asset during which it is profitable for the owner to…