At what output price would the farmer be indifferent in producing the 500 units of output given that the fixed cost of producing output Y is P150,000, variable cost is P300 per unit and the price of Y is P600 per unit. Explain.
Q: Price falls from $8.50 to $7.75, and the quantity demanded rises from 900 units to 970 units. What i...
A: ELASTICITY of demand refers to the percentage change in quantity demanded due to percentage change i...
Q: 10 Supply 7.5 2.5 Demand 200 400 600 800 Q If consumers were forced to pay $7.50 per unit for the go...
A: Consumer surplus refers to the area above the price and below the demand curve. It is the difference...
Q: The odds against Manager X settling the wage dispute with the workers are 8:6 and odds in favour of ...
A:
Q: (3) A firms production function is Q(L) =15L' -0.1Ľ' , where output (Q) is a function of a single in...
A: Answer: Given, Production function: QL=15L2-0.1L3 (1). To find the number of workers required to max...
Q: Q. %3D W=r=| C= LtK What is the LoNG Run:TC, AC, MC TOTAL COST Average Total cost Marginal lost
A: Production Function : Q=L1/2K1/2 Cost of Labor=wage=1 Cost of capital=rental rate=1 Cost=wL+rK Cost=...
Q: Utils, 8- 7- 6+ 5- TU 2 3 Which of the following characteristics of the total utility function is ex...
A: Total Utility is the overall amount of satisfaction receive by consumption of all the units of outpu...
Q: Isoquant curves Gym requires exactly 3 bottles of water per athlete to maximise performance (athlet...
A: Introduction Isoquant curve : Isoquant curve represents all the inputs combinations of two commoditi...
Q: The following are the prices of commodities in 2016 and 2017. Calculate price index based on price r...
A: Use the below formula to find the relative price: Price relative = P1P0×100
Q: The table contains information about the nation of Syldavia. There are no income taxes or imports in...
A: Y = C+I+G In an closed economy the above formula can be used Y= National income or GDP C= Consumptio...
Q: calculate the inflation/deflation if growth rate was 0.2 percent a year, the money growth rate was 3...
A: In economics, deflation is a decrease in the general price level of goods and services. Deflation oc...
Q: Market Demand for Porsche Spyder 1,050,000 Fred 1,000,000- Michel 950,000- Hua 900,000- Carlos n850,...
A: Here, the demand curve shows the different willingness to pay of different consumers.
Q: 5.6 5.2 4.8 4.4 4.0 3.6 3.2 2.8 2.4 2.0 1.6 1.2 0.8 0.4 0.4 0.2 1.2 Peaches (millions of tons) a. At...
A: From the given production possibility frontier of Itlay and Turkey, the production schedule is as fo...
Q: Plotted through point E are two demand curves; one is relatively elastic, and the other is relativel...
A: The kinked demand curve represents the independence of firms in an oligopoly market. The kink of the...
Q: What is the original price of a commodity when price elasticity is 0.71 and demand changes from 20 u...
A: Price elasticity of demand is the responsiveness of quantity demanded to changes in price. It shows ...
Q: Plant I of XYZ manufacturing organisation employs 5 production and 3 maintenance engineers, another ...
A:
Q: 8. Assume the economy is currently in equilibrium at its full-employment level of output, the money ...
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: 3. Consider an economy with six product-producing sectors and one non-producing sector, described by...
A: Total Demand = 2W + 3G + 2D + 1T + 1 WO + 2H Where , W = widgets , G = Gizmoes , D = doohickies , ...
Q: • Vicki works part - time at Bainen Press to help pay her college tuition. Vicki would be classified...
A: Given that Vicki works part-time to help pay her college tuition. This implies she is a full-time st...
Q: The first cost of machine is P 1,800,00 with a salvage value of P300,000 at the end of ts life of 5 ...
A: The digits of the years added together Because the capital is most efficient in the early years of i...
Q: Suppose a firm has a production function as follows: y = 4x 25 x25, The price of x1 and x2 are 2 and...
A: Production function shows the functional relationship between input of factors and output produced. ...
Q: 3/25/22, 10:55 PM Assignment Print View b. Use the graph above to indicate the world price, the new ...
A:
Q: Assume the market interest rate is 8% per year and inflation averages 5% per year. calculate the per...
A: those type of items that have a limited life, their perpetual equivalent annual worth is essentiall...
Q: Please solve using a national income accounting That tax increases (with no change in transfer paym...
A: The national income accounting measures the overall health of the economy. To measure the national i...
Q: In the city of Guangzhou, there are 1 million civilians (over 16 years old, non-institutionalized). ...
A: 1. Labor force participation rate=Employed+UnemployedLabor force (16 and above)x100 ...
Q: 48 44 40 Supply 36 32 28 24 20 16 12 Demand 5 10 16 20 26 30 36 40 45 50 55 60 QUANTITY Refer to Fig...
A: Economically speaking, the phrase "tax incidence" (or "tax incidence") refers to how a tax burden is...
Q: The budget constraint displays a price of good Y equal to $3.00 and a price of good X equal to $3.00...
A: Price of good X is $3 Price of good Y is $3 Bundle A consists of 16 units of good X and 10.67 units ...
Q: Need proper explanation
A: Central bank is the head of all commercial banks. There are many responsibilities that the central b...
Q: True or False AFC=ATC+AVC
A: Average cost refers to the total cost per unit of output. ATC = Total cost/ quantity
Q: How are societies economically organized?
A: Traditional, command, and market-oriented economies can all be found in societies. The majority of s...
Q: An increase in the expected price of commodity would likely to follow the current supply and demand ...
A: Demand shows the quantities of goods that a customer is willing to buy at various prices over a part...
Q: For the demand function q = D(p)%3D 288- p, find the following. a) The elasticity b) The elasticity ...
A: Answer: Given, Demand function: q=Dp=288-p=288-p12 (a). Let us first find the slope of the demand fu...
Q: BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Supp...
A: Monopoly maximizes profit by producing at MR=MC and charging the maximum price consumers are willing...
Q: Suppose the local authorities wanted to achieve a more drastic reduction in total pollution of 75 to...
A: Introduction Here local authorities wants to reduce total pollution. a) Suppose 35 permits issues to...
Q: Beginning about 1985, many developing countries, dissatisfied with the results of import-substitutio...
A: The nations around the globe are involved in the international trade with each other. The internatio...
Q: Refer to the table above. If the market is perfectly competitive, the equilibrium price of calculato...
A: In economics, a reservation price is a limit on the price of a good or a service. On the demand side...
Q: Suppose the government puts a tax on a market with inelastic supply and elastic demand, then---- O. ...
A: When a government imposed a tax on a product, then how much the burden of the tax falls on buyers an...
Q: Firms in the market for dog food are selling in a purely competitive market. A firm producing dog fo...
A: There are no entry barriers in the perfectly competitive firm. In the long run firms can enter and e...
Q: True or False Total cost can increase as a result of an increase in variable cost.
A: Total cost It refers to all of the costs and expenses incurred throughout the manufacturing process....
Q: Calculate the total revenue if the firm produces 4 versus 3 units. Then, calculate the marginal reve...
A: * SOLUTION :-
Q: If a market structure is an oligopoly, do Lexus, Cadillac, and Lincoln engage in sticky pricing? Who...
A: There are 4 main market forms which are as follows:- (1) Perfectly competitive market (2) Monopoly m...
Q: Is it worth investing in a project that costs up to 600 million dollars across 11 years but is expec...
A: Discount rate refers to the rate or interest rate by which future values are discounted such that th...
Q: Chris and Dana live in an exchange economy with two goods: good Q and good R. Chris starts off with ...
A: 2 consumers Chris and Dana 2 goods Q and R Initial endowment Chris R=6 units Q=10 units Initial end...
Q: Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 ...
A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only ...
Q: In a supply and demand model, excise taxes on goods and services cause deadweight loss because: O th...
A: A direct tax is one that is paid directly to the institution that imposed it. Individual taxpayers, ...
Q: 2. Chicken Hut faces perfectly elastic demand for chicken dinners at a price of $6 per dinner. The H...
A: The correct answer is given in the second step.
Q: Given the following technology matrix for a two sector economy: 0.4 01 A = 0.7 0.6 The final demand ...
A: Answer is given in the picture:
Q: A loan of $300,000 is repayable by an annuity payable half-yearly in arrear for 20 years. The half-y...
A: Given information Loan amount=$300000 Year of payment=20 Years Payable half yearly T=20*2=40 times Y...
Q: Designers of the Federal Reserve System were concerned that the Fed might form policy favorable to o...
A: The Federal Reserve System is the US government's central banking authority. It serves as the US gov...
Q: Why won’t innovative sharing technology with other firms ensure an efficient economy ?
A: In an economy, technology plays a significant role in improving the economic, financial and social h...
Q: Suppose the local authorities wanted to achieve a more drastic reduction in total pollu- tion of 75 ...
A: Let us assume , Marginal abatement cost of firm 1 be = c1 Marginal abatement cost of firm 1 be = c...
Step by step
Solved in 2 steps
- If the fixed cost of producing output Y is P150,000, variable cost is P300 per unit and the price of Y is P600 per unit, suppose the price of Y decreases by 25%, ceteris paribus, should the farmer continue producing 500 units of output? Explain why or why not.The cost function for Acme Laundry is C(q)=50+30q+q2, where q is tons of laundry cleaned. What q should the firm choose so as to maximize its profit if the market price is p?If a retail clothing shop has to pay monthly rental of A$10,000 and has variable costs of A$20,000 for 200 units of sales per month, what minimum price must it sell its goods in the market in the short-run and the long-run for the shop to continue operating?
- What is the cheapest way of producing 850 units of output if a firm operates with theproduction function 0.5 0.5 Q = 30K L and can buy input K at 75 $ per unit and L at 40 $per unit?A company has the following cost functions in the short run, where the production level, Q , is measured in ‘000s of units:TC = 0.5Q^3 − 2Q^2 + 5QFC = 7(i) Calculate the optimum output level for this company in the short run.(ii) Calculate the marginal cost for this company at a production level of 3000 unitsThe market for high-quality matsutake mushrooms is dependent on the weather. If the weather is good, one kilogram matsutake mushroom can be sold for $30. In bad weather it sells for only $20 per kilogram. Matsutake mushrooms produced one week will not be kept until the next week, A small matsutake mushrooms producer has a cost function given by C = 0.5q^2 + 5q + 100 where q is weekly matsutake mushrooms production. Production decisions must be made before the weather (and the price of matsutake mushrooms) is known, but it is known that good weather and bad weather each occur with a probability of O.5. How much matsutake mushrooms should this firm produce if it wishes to maximize the expected value of its profits?
- A competitive firm uses two variable factors to produce its output, with a production function y = min{ x1, x2 }.The price of x1 is w1 = $8 and the price of x2 is w2 = $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x1. The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount? please solve asap?A competitive firm uses two variable factors to produce its output, with a production function y = min{ x1, x2 }.The price of x1 is w1 = $8 and the price of x2 is w2 = $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x1. The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount?Please select all that are true regarding Minimum Efficient Scale (MES): if the quantity demanded is equal to Qmes, then the lowest cost solution is for one firm to supply the market MES is the quantity produced where average costs for a firm are at a minimum Long run average costs include fixed cost steps as quantities (scale) increase Quantities (x-axis) less than MES exhibit decreasing returns to scale due to diminishing marginal returns Short run average cost curves are for a given level of fixed cost, individually MES is the quantity demanded where total costs for a firm are at a minimum Quantities (x-axis) greater than MES exhibit decreasing returns to scale due to diminishing marginal returns Average costs do not include fixed cost since they don't change
- Consider the production functions for X and Y given below.X = 2K2 + 4L ; Y = 10K0.5 L0.5 ; Suppose the isocost equation is given by C = 4L + 10K, derive (i) the long-run cost function for good Y and (ii) the short-run cost function for good X if 10 units of capital are employed in X.A firm’s product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the table and use that information to answer these questions. a. Identify the fixed and variable inputs. b. What are the firm’s fixed costs? c. What is the variable cost of producing 475 units of output? d. How many units of the variable input should be used to maximize profits? e. What are the maximum profits this firm can earn? f. Over what range of the variable input usage do increasing marginal returns exist? g. Over what range of the variable input usage do decreasing marginal returns exist? h. Over what range of input usage do negative marginal returns exist?Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting Goods, which pays Paducah $10 for each finished bat. Paducah's only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below. a. The wage is $15 per hour and Paducah’s daily fixed cost for the lathe and building is $50. Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Express marginal cost values rounded to the nearest penny (two decimal places). Q (bats per day) Number of employee-hours per day Total revenue($ per day) Total labor cost($ per day) Total cost($ per day) Profit($ per day) Marginal costper bat 0 0 — 5 1 10 2 15 4 20 7 25 11 30 16 35 22 What is the…