Q: 1.4) An example of innovation rent is: Select one or more: The cost of opening a new factory. The…
A: Opportunity Cost is the value of next best alternative sacrificed i.e. to receive one thing, the…
Q: Graph of TB & TC from Hours Working: The graph below measures the benefits and costs from working,…
A: Net benefit is the difference between total benefit and total cost. NB = TB - TC
Q: Graph of TB & TC from Hours Working: The graph below measures the benefits and costs from working,…
A: Net Benefit is calculated using the formula = Total Benefit - Total cost
Q: Since most consumers spend very little on salt, a small increase in the price of salt will: A.…
A: Substitute goods are similar products that a customer may use for the same purpose. Here, the…
Q: A production function is characterized by ? = 10 + 5L, where q is output per hour and L is labor…
A: 1. A production function is characterized by ? = 10 + 5L, where q is output per hour and L is labor…
Q: Graph of TB & TC from Hours Working: The graph below measures the benefits and costs from working,…
A: Blue line is TB (i.e., Total benefit) Red line is TC (i.e., Total cost) Net benefit (NB) is TB minus…
Q: QUESTION 1: When Burton Cummings graduated with honors from the Canadian Trucking Academy, his…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: A manufacturer estimates that the annual output at a certain factory is given by K,L) = 40K0.8L0.2…
A: Given that, Q(K,L) = 40K0.8L0.2 Here k is the capital expenditure in thousands of dollars and L is…
Q: 1. A firm uses a single input to produce a commodity according to its short-run production function…
A: (a) The firms profit function is (b)The profit maximising amount of input is 16 and the for output…
Q: SMES ARE A MAJOR SOURCE OF TECHNOLOGICAL INNOVATION AND NEW PRODUCTS. a. True. O b. False.
A: When some quantities of product is manufactured, cost takes place and process of business follow…
Q: A car manufacturing should continue to produce additional cars as long as the firm is profitable…
A: The manufacturing industry is an organization that produces a final product using equipment,…
Q: 5) Which of the following are considered factors of prodaction? I Land IL Labor IL Physical capital…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: A firm produces a good using two inputs, capital (K) and labour (L). For every unit of output being…
A: Total Cost=$1000 Rental capital= $20 Hourly wage= $10
Q: Paul's firm
A: Given : Cp( qp ) = 7.6 qp + 2.2. Cs( qs ) = 7.6 qs + 2.2. Total units produced = 595 units Half of…
Q: 4 The median starting salary for new law school graduates is determined by log(salary) = Bo + B,LSAT…
A: We are going to use classical linear regression model properties to answer this question. Note: As…
Q: what are two examples, of companies’ respecting the rights of employees and of companies’ failing to…
A: *Answer: The company should pay to the employees the living best show that can support their…
Q: Cars produced each day A specialty-car manufacturer has plants in Auburn, Biloxi, and Chattanooga.…
A: a) Calculating AB: AB = 1210044208912…
Q: Suppose that the XYZ Corp. (which is a profit-maximizing enterprise) produces “gadgets” according to…
A:
Q: You are moving across town. Doing your research, you find that the average rate of a moving company…
A: We are going to calculate consumer surplus and optimisation techniques to answer this question,
Q: Don Juan Perez runs a seafood restaurant. His total income last year was $150,000. The rent was…
A: Utility: Utility is simply the wants satisfying power of a good. In simple words utility is the…
Q: (Hint: Example 11.4, p.162/280) Avis Company is a car rental company that is located 3 miles from…
A: a. The travelling rate (TR) is 15 buses per hour (60/4). The travelling time (TT) is 30/60 = 0.5…
Q: President Bloen's Economic Adviser claims that American business are prospering based on the protit…
A: A profit function to be valid it should contain following properties - non-decreasing in output…
Q: A company with production technology y = K 0.5. L 0.5, where y, Ki L are, respectively, the units of…
A: A company is at optimum when it produces at a point where marginal rate of technical substitution is…
Q: 10.Assume that a firm can produce product A, product B, or product C with the resources it currently…
A: Total profits of a firm from the production of a good can be calculated by deducting it's total cost…
Q: Which of these actions creates value? O Buying a struggling firm and selling off its assets for more…
A: The measure of the benefit or gain that is being provided to an economic agent by using any good or…
Q: Use the equal marginal principle in production to explain the effects of these government policies:…
A: In production, the isoquant curve shows the various possible and feasible combinations of inputs…
Q: When computing economic profit, we assume that capital gains a: A. zero rate of return B. average…
A: Economic profit refers to the profit that remains after deducting all the cost of production from…
Q: 15) Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Saved The following table shows the production function for a bicycle manufacturer: Number of…
A: (a)It is given that the weekly wage is $700; therefore, the marginal labor cost of the second worker…
Q: Which of the following inputs do you think include relatively large economic rents in their…
A: Various economic inputs have their need in the economy as per their demand and supply, price of…
Q: QUESTION 1: When Burton Cummings graduated with honors from the Canadian Trucking Academy, his…
A: In the mentioned question we are given some explicit costs and some implicit costs. Let's figure out…
Q: Suppose that the total benefit and total cost from a company are given by the following equations:…
A: TB(Q) = 100 + 36Q – 4Q2 TC(Q) = 80 + 12Q + 1.2Q2.
Q: Lower corporate tax rates Oa) increase the incentives for corporations to undertake activities that…
A: Taxes are collected by the government in power. Taxes act as revenue for the government.
Q: 3 1- which is an example of an objective a) Find a high-paying job after college b) Gratuate from…
A: Objective refers to the statement that describes a particular aim of a person or agent. It is narrow…
Q: Disutility Q.3.3 Explicit cost
A: Answer Disutility Utility = Level of satisfaction that is feasible once the products are were…
Q: What are the main causes of inefficiency in most firms? Should firms use accounting profits or…
A: Inefficiency: Inefficiency refers to the lack of innovation which results in the high cost of…
Q: 2020, Mr. Adam had two options: either he could start Business A or he could start Business B. What…
A: Implicit Cost or Opportunity cost, is the cost incurred by an individual, when they choose one…
Q: Profit maximization may not be the goal of a business firm. What other goals might a business…
A: Profit maximization is one of the goal of business.
Q: Complete each statement. 9. Before an entrepreneur can open the doors of a business, he or she must…
A: An entrepreneur is the person who enters into the market with something new in terms of product,…
Q: A potential entrepreneur is trying to decide whether to open a new health spa. She currently makes…
A: Opportunity cost is the cost that a person has a benefit of while choosing one alternative over the…
Q: Owner owns a pizza shop with a single employee. If employee works x hours, he can produce sqrt x…
A: we know that every firm has sole objective to maximise the profit level through minimisation of the…
Q: From Table 6.4, (a) find the AP and the MP of labor. Labor 0 1 2 3 4 5 6 7 8 9 TP 0 2 5 9 12…
A: We will use the following formula, AP of labor = Total product/Quantity = TP/Q MP of labor = Change…
referring to the graph above, the profit-maximizing quantity is
a. 7
b. more than 10
c. 10
d. 0
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Q48' Assume that Cresco Labs is a monopolist that can sell 15 ounces of marijuana per day at $12.50 for each ounce. To sell 16 ounces of marijuana per day, the price must be cut to $12.20. The marginal revenue of the 16th ounce is Multiple Choice $12. $7.70 . $16. $-0.30. $12.20.Suppose demand and supply curves for you company’s product are given by:QD = 10 -XP QS =5 +YP You will need to find value for X between [0.1 -3] and Y between [0.1 -3] based on the elasticity of demand and supply. This elasticity in turn depends on the type of product, marketstructure and competitive advantage of the company. In this case, the product is an electric car and the price elasticity of demand is high.Suppose demand and supply curves for you company’s product are given by:QD = 10 -XP QS =5 +YP You will need to find value for X between [0.1 -3] and Y between [0.1 -3] based on the elasticity of demand and supply. This elasticity in turn depends on the type of product, marketstructure and competitive advantage of the company. In this case, the product is an electric car and the price elasticity of demand is relatively high. Moreover, this does not have to be an exact value, and it should be done by looking at the graph of the price elasticity.
- Your firm is considering entering a new territory. From market research, you have obtained the following demand function that explains how your price (P in dollars) and advertising (A in thousands of dollars) choices influence the quantity demanded (Q in thousands of units). Q = 20 - 6P + 2A To enter the new market you plan on running $10,000 worth of ads. The marginal cost of producing your product is $1 per unit. 3a) What is your profit maximizing price, quantity sold, and profit?Plum charges £500 for its smartphone, producing a revenue of £8 million per month. It fears that a competitor, MV, will shortly make a price reduction of 10% for its product. The marketing manager is considering whether to match this price reduction in order to try and maintain sales. She has estimated that Plum’s PED is –1.5 and the CED with the competitor’s product is 0.8. The marginal cost is estimated to be 42% of the price. a) Calculate the effect on Plum’s sales volume and revenue assuming it maintains its price at the existing level. b) Calculate how much of a price cut Plum would need to make to maintain its sales volume at the existing level. c) Evaluate whether the price cut is a good strategy: The project of highway road construction Now the county government give the project to the company by way of bidding, considering the status quo of management, the county government gives the company some subsidies and pricing power, construction costs and benefits of all belong to the company. Far away from the county to a town around the mountain road, the county government considers to make a tunnel, and the passing vehicles should pay fees, estimated the demand function of through the tunnel: P=25—0.5Q P:fees per car Q:the number of cars through the tunnel (2) Qday=36-1.5Pday+20r Qnight=10-0.5Pnight+30r r:The rates of economic growth In each situation, what's the maximal price of bidding for the company? What is the focus of the debate in this case? Can we use demand price elasticity theory and the knowledge of economy profit to help managers to make the right decisions?
- Based on the following table: Output Price($) Total Costs($) 0 10 31 1 10 40 2 10 45 3 10 48 4 10 55 5 10 65 6 10 80 7 10 100 8 10 140 9 10 220 10 10 340 a. What is the profit-maximizing output? unitsA firm with market power has an individual consumer demand of Q = 20 − 2P and total costs of C = 3Q. What is the optimal amount of this product to package in a single block?The equations that correspond to the following market are as follows: Qd = -200P + 3,000 Qs = 200P - 400 During finals week, Midnight Cookies runs the 'Manager's Special,' which sells the same cookie four-pack for $5. Holding all other variables constant, and assuming that Midnight Cookies changes nothing to their production plans, calculate the deadweight loss generated in the Midnight Cookies market from the store running the Manager's special during finals week. Omit any units and round to the nearest cent.
- Suppose: AC= 150-1.5Q-1/3Q2(Q is square) Q=145-1.5P Then find optimum level of outputs (Q) at which profit is maximized and TC is minimized.Moses Inc. is a small electric company that provides power to customers in a small rural area in the Southwest. The company is currently maximizing its profits by selling electricity to consumers at a price of $0.15 per kilowatt-hour. Its marginal cost is $0.05 per kilowatt-hour, and its average cost is $0.15 per kilowatt-hour. A government regulator is considering a proposal to regulate the firm’s price at $0.05 per kilowatt-hour. Would such a policy improve social welfare? Explaingiven p(q)=176-9Q and c(p)=5Q+19 find the profit max quantity