QUESTION 2 Think the two-period model for coals. Suppose a demand schedule is P = 80 - 0.5Q and a supply schedule is MC = 10 + 0.5Q, for a two-period model. Period 1 is current time and period 2 is future, a year later. Annual discount rate is 20%. The supply of coals is limited to 100 units. The dynamically efficient quantities for period 1 and 2 are Q₁= and Q2= respectively. The dynamically efficient prices for period 1 and 2 are P₁ = and P2= respectively. Hint: Round the numbers to two decimal places.

QUESTION 2 Think the two-period model for coals. Suppose a demand schedule is P = 80 - 0.5Q and a supply schedule is MC = 10 + 0.5Q, for a two-period model. Period 1 is current time and period 2 is future, a year later. Annual discount rate is 20%. The supply of coals is limited to 100 units. The dynamically efficient quantities for period 1 and 2 are Q₁= and Q2= respectively. The dynamically efficient prices for period 1 and 2 are P₁ = and P2= respectively. Hint: Round the numbers to two decimal places.

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

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the following mundell-fleming model of a small, open economy will be used in all numerical exercises. it assumes a short-run framework in which prices are constant and output is demand-determined. c=150+0.8(y-t) i=500-30r nx=400-150e m/p=50+y-60r r=5 g=300 t=100 m=3000 p=3 the above values of exogenous variables will be referred to as their original values in the questions below. for this question, assume that the exchange rate is floating. derive the equilibrium equations for is* and lm*, sketch a graph of the two equations and solve for the equilibrium values of y, e and nx. b)Suppose the Treasury attempts to stimulate the economy by decreasing taxes T from 100 to 70. Calculate the new values of Y, e and NX. With the help of the graph you sketched in (a), explain the mechanism by which a new equilibrium is reached. answer part b
the following mundell-fleming model of a small, open economy will be used in all numerical exercises. it assumes a short-run framework in which prices are constant and output is demand-determined. c=150+0.8(y-t) i=500-30r nx=400-150e m/p=50+y-60r r=5 g=300 t=100 m=3000 p=3 the above values of exogenous variables will be referred to as their original values in the questions below. for this question, assume that the exchange rate is floating. Suppose the Treasury attempts to stimulate the economy by decreasing taxes T from 100 to 70. Calculate the new values of Y, e and NX. With the help of the graph you sketched in (a), explain the mechanism by which a new equilibrium is reached.
An investment services company experienced dramatic growth in the last two decades. The following models for the company's revenue R and expenses or costs C (both in millions of dollars) are functions of the years past 1990. R(t) = 21.4e0.131t and C(t) = 18.6e0.131t (a) Use the models to predict the company's profit in 2023. (Round your answer to one decimal place.) $ million (b) How long before the profit found in part (a) is predicted to double? (Round your answer to the nearest whole number.) years after 1990
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arrow_forward Question Asked Jun 23, 2020 1 views Management of Ben Services identified two groups of individuals that would be interested in the vacation package consisting of room and board and/or entertainment. The maximum amount that group 1 is willing to pay for room and board 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 Ben is not able to identify members of either group, it does know that each group values the components of the package differently. Assuming there are an equal number of members in each group and that the total membership in each group is a single individual. If the marginal cost of providing the service (room and board and/or entertainment) to each group is GHC 1000. i. If AG Travel and Tour wants to charge a package price, what is the highest price it can charge? ii. What profit will AG Travel and Tour make if it…
An entrepreneur wants to open a hotel in Puerto Escondido, Oaxaca. Two key variables that should be anticipated to estimate the number of rooms that maximize future profit should be? Total costs and marginal costs Average costs and marginal costs Total income and marginal income Total revenue and total costs
answer with given formulaand complete solution with explanation
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