Determine whether there is a specific market price above which demand is zero or price per unit is unbounded. Write the maximum possible market price, using dollars per unit as the units of measure for input. (If the price per unit is unbounded, enter UNBOUNDED.) D(p) 3.6p-0.3 units dollars per unit

Determine whether there is a specific market price above which demand is zero or price per unit is unbounded. Write the maximum possible market price, using dollars per unit as the units of measure for input. (If the price per unit is unbounded, enter UNBOUNDED.) D(p) 3.6p-0.3 units dollars per unit

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter21: Getting Employees To Work In The Firm’s Best Interests

Section: Chapter Questions

Problem 8MC

See similar textbooks

Similar questions

Estimate the equlibrium price and quantity of the market whose demand and supply functions are pd =−(q + 4)2 + 100 and ps = (q + 2)2 respectively.
Predicting Changes in Equilibrium Price and Quantity Suppose that the market demand for farmed salmon is Qd = 12 – p and the market supply of farmed salmon is Qs = 9.6 + 0.5p – 0.2pt, where Q is the quantity of salmon in millions of tons per year, p is the price of salmon in dollars per pound, and pt is the price of tilapia in dollars per pound. The supply function demonstrates that the facilities that are used to farm salmon are also suitable for farming tilapia. a) Use a market diagram to demonstrate that the equilibrium price and quantity of salmon is implicitly a function of the price of tilapia. That is, show how a change in the price of tilapia will impact the market for farmed salmon. (No need to use numbers here, just sketch and explain.) b) Using the supply and demand functions, derive the relationship between the price of tilapia and the equilibrium price and quantity of salmon. You should ultimately calculate and . Check your work by calculating the impact of an increase in…
Consider an economy with a single consumer whose preferences are given by U = log(x) - , where x is consumption and labor supply. Assume that the consumption good is produced using labor alone with a constant-returns-to-scale technology. Units of measurement are chosen so that the producer prices of both the consumption good and the wage rate are equal to 1. a. Let the consumer’s budget constraint be qx = , where the consumer price is q = 1 + t, and t is the commodity tax. By maximizing utility, find the demand function and the labor supply function. b. Assume the revenue requirement of the government is 1 10 of a unit of labor. Draw the production possibilities for the economy and the consumer’s offer curve. c. By using the offer curve and the production possibilities, show that the optimal allocation with commodity taxation has x = 9/10 and = 1. d. Calculate the optimal commodity tax. e. By deriving the first-best allocation, show that the commodity…
The market for soda beverages demand is QD = 90-20P and supply is QS = 30P-10. Price is measured in dollars per one-gallon bottle and quantity in millions of one-gallon bottles a) Find the equilibrium quantity and price in the market for soda and compute Consumer Surplus and Producer Surplus when the market is in equilibrium. As that problem noted, sweetened beverages contribute to the over consumption of high-fructose corn syrup with negative consequences for public health. Suppose that each extra one-gallon bottle of soda sold in the market imposes a $1 external cost on state and federal governments that see Medicare and Medicaid diabetes-related expenditure increase. b) What is the total external cost that the soda beverages industry imposes on the government? Suppose that a $1 per bottle tax is imposed on sellers of soda beverages. What is the new equilibrium price and equilibrium quantity in the market for soda beverages? c) How much consumer surplus and how much producer surplus…
Suppose Hinterland has been a closed economy (meaning there is no immigration from foreign countries and no international trade). The current labor force has 4 million skilled workers and 8 million unskilled workers. Both types of labor have perfectly inelastic supply curves, and the current skilled-unskilled wage ratio is 2.5. The elasticity of demand of skilled labor is -0.4, while the elasticity of demand of unskilled labor is -0.1. Suppose Hinterland allows a brief period of immigration, during which time 1 million skilled workers and 4 million unskilled workers migrate to Hinterland. Suppose there are no other changes to the economy. Approximately what is the new skilled-unskilled wage ratio? (Hint: The percent change in the wage ratio is approximately equal to the percent change in the skilled wage minus the percent change in the unskilled wage.)
Paolo is a stav-at-home parent who lives in Philadelphia and provides math tutoring for extra cash. At a wage of $25 per hour, he is willing to tutor 6 hours per week. At $35 per hour, he is willing to tutor 16 hours per week. Using the midpoint method, the elasticity of Paolo's labor supply between the wages of $25 and $35 per hour is approximately _____, which means that Paolo's supply of labor over this wage range is _____. Part 1: 0.03, 0.37, 2.73, or 11 Part 2: elastic or inelastic
Question 1a. Estimate the equilibrium price and quantity of the market whose demand and supply function are pd=(q+)^2+100 and ps=(q+2)^2 respectively. 1b. If the region shaded grey in the diagram above represents a set, derive the system of inequalities that define that region. 2. The profit function, in dollars for a product given by p(x)= -x^3 + 76x^2 - 380x - 2800 Where x is the number of units produced and sold. If the break-even point occurs when 10 units are produced and sold a. Find the quadratic factor of P(x) b. Find finds the number of units other than 10 that give break-even for the product.
The demand and supply functions are given as follows: Qd = 100-8P Qs = -35+10P If the government sets the price as 6.5 dollars what will be the economic condition?
Which statement is true? Group of answer choices A competitive market maximises total surplus as all the gains from trade are realized. In a competitive market all trade for which the MB is greater than or equal to the MC of production take place. If output was increased beyond the traded in a competitive market total surplus would decrease. The competitive equilibrium outcome is Pareto efficient. All of the above. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Yakov is a stay-at-home parent who lives in Houston and teaches tennis lessons for extra cash. At a wage of $30 per hour, he is willing to teach 6 hours per week. At $50 per hour, he is willing to teach 16 hours per week. Using the midpoint method, the elasticity of Yakov’s labor supply between the wages of $30 and $50 per hour is approximately _______ , which means that Yakov’s supply of labor over this wage range is _____ .
Tying sales is a market practice designed to increase sales volume. A "tying sales" situation is said to occur when what happens? Select the correct answer below: 1. A customer is required to buy one product only if the customer also buys a second product. 2. Two or more products are sold as one. 3. Firms divide markets by allocating customers. 4. An existing firm reacts to a new firm by dropping prices very low until the new firm is driven out of the market.
Some workers are “skilled”. Each of them on average will install 4 packages per day. The rest of the workers are “rookies”, who on average install 1 package per day. Each package creates a value of $100 for the shop owner. The supply curve of skilled workers is QS = W – 100 and the supply curve of the rookie workers is QR = 4(W – 100), where W is the daily wage. The market for workers is perfectly competitive. If employers cannot observe each worker’s ability, how many packages per day will the workforce install in equilibrium? 480 300 240 None of the above