Housing is supplied by a competitive building industry. Builders construct housing at different locations and then sell or rent it to households. The selling price/rent they charge at a distance of 5 kilometres is p(5)- $1.85 per square foot. Every household in the city consists of 43 units of capital, 1.100 square feet of floor space, and 1,400 square feet of land. All buildings in this city are the same height. The price of capital is $5. In the long run, how much would a builder be willing to pay in land rent, rid), for a piece of land they will build on, 5 kilometres from the city centre? O $1.00 per square foot $1.07 per square foot O $1.21 per square foot O $1.30 per square foot

Housing is supplied by a competitive building industry. Builders construct housing at different locations and then sell or rent it to households. The selling price/rent they charge at a distance of 5 kilometres is p(5)- $1.85 per square foot. Every household in the city consists of 43 units of capital, 1.100 square feet of floor space, and 1,400 square feet of land. All buildings in this city are the same height. The price of capital is $5. In the long run, how much would a builder be willing to pay in land rent, rid), for a piece of land they will build on, 5 kilometres from the city centre? O $1.00 per square foot $1.07 per square foot O $1.21 per square foot O $1.30 per square foot

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

Chapter1: Introduction: What This Book Is About

Section: Chapter Questions

Problem 1.1IP

See similar textbooks

Similar questions

Q5) A firm is planning to manufacture a new product. The sales department estimates that the quantity that can be sold depends on the selling price. As the selling price is increased, the quantity that can be sold decreases. Numerically they estimate: P = $35.00 - 0.02Q where P =selling price per unit Q = quantity sold per year On the other hand, the management estimates that the average cost of manufacturing and selling the product will decrease as the quantity sold increases. They estimate C = $4.00Q + $8000 where C = cost to produce and sell Q per year The firm's management wishes to produce and sell the product at the rate that will maximize profit, that is, where income minus cost will be a maximum. What quantity should the decision makers plan to produce and sell each year?
An entrepreneur named Khadijah has total revenue shown by the equation TR = 150Q - 5Q² and total costs shown by the equation TC = 20 - 10Q. Determine the amount of output that must be produced by Khadijah to get the maximum profit and what is the maximum profit from that amount of output. Prove that the value obtained is the maximum!
Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. How much will the profit for AG Travel and Tour be?
Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. Since AG Travel and Tour is not able to identify members of each group,what price should it charge for each product?
Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. If AG Travel and Tour wants to charge a package price, what is the highestprice it can charge?
What can you say about negative and positive gross margin in sensitivity analysis
A senior buyer for Nike decided to order a men's shoe during a buyers meeting. The shoe will be a part of nike's easter promotion. Upcoming designs are to be released after easter, so the shoes have to be sold during the easter periodNike would like to host a clearance sale, in an attempt to sell all shoes not sold by march 31st. The shoes will be sold retail at $50 per pair and the company makes $15 profit per pair. At the selling price of $21 per pair, all surplus shoes would beexpected to be sold during the April sale. The expected demand for the shoes is 700 pairs with a standard deviation of 300 pairs. Given the information above, How much pairs of this shoe should be ordered by the buyer.
All Smiles Dental Clinic would like to develop a hygienistmaster schedule for the treatment of patients. Five full timehygienists are scheduled six days a week, and each hygien-ist can treat 10 patients per day. If the number of patientsexpected is greater than the hygienist capacity scheduled, additional hygienists may be hired on a daily basis from atemporary worker employment agency. The agency requiresone day notice. Based on your knowledge of MPS, completethe following prototype schedule shown in Figure 11.48
If specific duty is $2 per dozen and ad valorem duty is 20%, find the total duty on 12 dozen padlocks valued at $650.
The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. For the first $150,000 of profit, the vice president's compensation is a flat annual salary of $50,000 plus 90% of company profits. Beyond the first $150,000 in profits, the vice president's compensation is the salary he receives at $150,000 profit plus 10% of company profits in excess of $150,000. How do you plot the profit of buying the company as a function of annual profit when you assume the company will be worth 10 million in five years?
Philippine Population 110M Urban Population 51.2% of PH Multi-unit Residential Population11.9% of Urban Population If usage is 2 bottles per day and each bottle is Php12.00… What is the market size (value) per quarter for bottled water for the urban population? What is the market size (units) per quarter for those living in multi-unit residential areas?
A jewelry craftsman needs 100 grams of gold alloy, of 75% pure gold for his products. Only two alloys of gold are available from Cebu supplier, the first 80% pure gold, and the other 60% pure gold. How many grams of each gold alloy must he buy to suit this requirement? 75 grams 70 grams 25 grams 50 grams 60 grams 30 grams