Solve the following consumer optimization problem using Kuhn-Tucker. (Your solution should have Xi ≥ 0.) max 2x1x2 + 7 subject to 3x1 + x2 ≤ 60 and x2 ≤ 20
Q: Maria was working for an employer and lost her job two months ago. She has not looked for a…
A: Unemployment refers to the condition of one who is capable of working, and actively looking for…
Q: At a price of $100 there is demand for 824 items and a supply of 500 items. At a price of $180 there…
A: A linear demand function will be applying the algebraic approach for the computation of the supply…
Q: Suppose the price of grapefruit falls drastically. Instructions: Depict how this event will affect…
A: Grapefruit and oranges are substitute goods which means that they can be use in place of one…
Q: Should an MNC alter its ethical standards to accommodate a host country in order to successfully…
A: Multinational corporations are those firms which have their operations spread in more than one…
Q: i need this in words not handwritten just Rewrite this
A: As asked, wil be typing the solution.
Q: 5. Wireless high-speed internet in provided for free at an airport in a smaller city (like…
A: Kindes of goods: In public economics, one studies the various kinds of goods in the economy. The…
Q: The term potential output refers to: a)The maximum possible output for an economy b)The quantity…
A: Aggregate demand depicts the total output demanded at each price level in the economy Aggregate…
Q: An indirect tax is: A. a tax on goods and services that we purchase B. a tax with your name…
A: What is indirect tax.
Q: Consider the following short-run IS-LM model described by equations (1) through (6): (1) C= 200+…
A: The IS-LM model explains how aggregate real goods marketplaces and financial markets interplay to…
Q: 2. An equipment costs P740,000 and has a maintenance cost of P50,000 every year. If it has a salvage…
A:
Q: Consider an economy that is initially in long-run equilibrium. Assume that the long- run aggregate…
A: Over the long run, Economy is at full employment condition. The change in the demand or supply might…
Q: 9. A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the…
A: Since you have asked multiple subparts, we would be answering the first three for you. To get the…
Q: Problem 3. Recall u is CES if for p 0 and Σ; ai = 1, ² u(x) = (Σ α₁x² (1) Show that preferences are…
A: Given informationCES utility functionU=∑iaixiρ1ρρ<1∑iai=1ai>0
Q: Explain what happens to Pe and Qe when supply increases and when supply falls.
A: Case I: When supply increase With everything else remaining constant, an increase in supply will…
Q: (a) Does the probability of passing the test depend on Experience? Explain. (b) Matthew has 10 years…
A: Given The model in column 2 is a logit regression model in which the dependent variable is the log…
Q: Yulia's annual demand for home-delivered coffee beans is given by MWTP(Q) = 500 - 5xQ, where Q is…
A: Given Maximum willingness to pay MWTP(Q)=500-5Q ........(1) Price of coffee beans =$400 We…
Q: The economy's real GDP was $140 billion in 2019 and $280 billion in 2020. Its population was 15…
A: Given information: Real GDP in 2019: $140 billion Real GDP in 2020: $280 billion Population in…
Q: Suppose a tariff of now the "T-shirt" market is open to international trade. The world price for…
A: When a country imposes tariffs on imports of goods that compete with those produced by a small…
Q: Labor Output 0 1 10 4 5 6 100 250 350 Marginal Variable Product Cost $5 $5 $5 $5 $5 $5 $5 Use the…
A: Labor Output MP VC FC 0 0 0 5 1 100 100 5 5 2 250 10 5 3 350 15 5 4 50 20 5 5…
Q: Define and provide examples of the following concepts: 1. Comparative advantage 2. Balance of Trade…
A: Macroeconomics refers to the branch of economics that deals with the economy as a whole for example…
Q: Which of the following are Adam Smith's Dos? A. Protect society from violence and invasion of…
A: Smith's three basic principles of economics: People follow the law of self-interest. Competition…
Q: Which of the following are the tools in the Fed’s toolbox? Check all that apply. a) repurchase…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Mr. X takes a loan of $50,000 from a Bank. The nominal rate of interest is 10% compounded annually.…
A:
Q: For the below ME alternatives, which machine should be selected based on the AW analysis. MA First…
A: Annual worth is the equal annual cost of machine. Present value is the value of investment in…
Q: Host nations have adopted competition policy and anti-dumping law. Examine the characteristics…
A: Tacit collusion arises when the companies collude without any formal communication or written…
Q: 2. Consider the overlapping generations model that was discussed in e lectures (please see lecture…
A: A subgame perfect equilibrium in game theory is a modification of a Nash equilibrium utilized in…
Q: A rise in the price of one good is illustrated as Select one: O a. A parallel inward shift of the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Discuss the situational factors that suggest the need for specialization and centralization. Provide…
A: We show that Situational factors that would suggest that we should use a centralized organization…
Q: a) When the useful lives of alternatives differ, we can use the Guter common disor ) Latest common…
A: Given that the useful life of oven A is 4 years and the useful life of oven B is 6 years. For…
Q: A positive balance of trade is when: A. imports are greater than exports B. exports are…
A: The balance of trade refers to the difference between the monetary value of a country's exports and…
Q: From the equation of exchange, if both real income (Y) and the quantity of money (M) double and the…
A: The quantity theory of money:- According to the American Economist Irving Fisher, there is a…
Q: ii) iii) iv) Draw the consumer's Indifference Curves for U(x) = 1. Shade the area for which U(x) ≤…
A: Here we are given the utility function and the budget of the consumer. And here the consumer will…
Q: 1. Suppose that you borrow $20,000 at 9%, compounded monthly, over five years. Knowing that the 9%…
A: Equivalent value or dated value refers to the value of an original sum at any given time. The…
Q: Which of the following would properly be classified as a favorable supply shock?
A: Introduction A supply shock is a dramatic reaction to the price of a good or product because of…
Q: state some flaws in the democratic system of government
A: A democratic system of government is where the power is vested in the hands of the people so that…
Q: area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol)…
A: The point of intersection of the demand and supply curve is called the equilibrium point. The price…
Q: Consider the following market for CFC-11, a known ozone-depleting substance: Demand: Q=15-1.5P…
A: In economics, economic equilibrium is a situation in which economic forces such as supply and demand…
Q: What role of government do you think is the most important from an economic perspective and why?…
A: Government plays a very important role in the modern economy and helps in maintaining balance.…
Q: Use the Gravity Model to explain why China, Japan, Mongolia, North Korea, South Korea, and Taiwan…
A: According to the gravity model of international commerce, the amount of trade between two nations is…
Q: Which of the following is added to the GDP? A. Exports B. Imports C. Net Exports D.…
A: GDP is the gross domestic product. It includes consumption , investment , government spending and…
Q: Why should we reduce the food stamps? List 5 reason why.
A: In United States, the Food Stamp Program is a federal aid program with the main motive of an…
Q: 7. The unemployment rate at the time was 10%, and a confederation of large businesses campaigned for…
A: Unemployment rate = 10% Minimum wage decreases from 50 francs to 30 francs
Q: 2. 3 takes the wage rate as given and chooses how many hours of work to supply in the labor market.…
A: One essential statistical method for data analysis is regression analysis. Regression analysis can…
Q: When Andrew was 10 years old, his mother invested $50,000 to use for his college education seven…
A: Prevent value refers to the sum of money that needs to be invested to reach a particular sum in the…
Q: Jeremy derives all of his utility from consuming milk shakes; he devotes his entire $20 allowance to…
A:
Q: In 2012, the Scottish government introduced a 50 pence minimum price for a unit of alcohol. [One…
A: The minimum price at which one standard drink can be offered for sale or sold is the minimum floor…
Q: 5. Motorcycle shop A sells brand new motor bikes at Php42,250 less 10%. Shop B, on the other hand,…
A:
Q: ou are a pricing analyst for QuantCrunch Corporation, a company that sells a statistical software…
A: Two part tariff is followed by monopoly firm to maximize the profit. The consumer has to pay one…
Q: True or false: An increase in the share of income earned by the top half of the income distribution…
A: Suppose that initially there are 100 people in the economy and their income distribution is given…
Q: You have a total of $2,520,000 in your retirement account right now. You plan on making a uniform…
A: Present value is the value of investment in today's dollar. Future value is the value of…
Can someone solve this optimization problem using Kuhn tucker?
Full explain this question and text typing work only thanks
Step by step
Solved in 3 steps
- solve the question 6 with complete explanation within 10 mins or else downvoteCompany X has been unable to keep up with customer demands for product Y. They are considering two options. The first is to replace the existing tooling machine with a new machine or start a second shift to increase throughput. The cost of the new machine is $500,000. The cost of ramping up the second shift is 150,000. With the new machine option, there is a 60 percent opportunity of generating 750,000 in revenue. There is also a 40 percent opportunity of making $200 in revenue. With the second shift option, there is a 50 percent opportunity to generate $400,000 of revenue and a 50 percent opportunity to generate $100,000 of revenue. Which option would you recommend?Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is −3.0. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places.
- For the first week of August, the Queen Arms Hotel budgeted for 1,100 room nights at an average room rate of $140. Actual room nights for the week totaled 1,000 with an average room rate of $135. The price variance for the week was: Group of answer choices a.$5,000 unfavorable. b. $7,000 favorable. c. $5,200 favorable. d. $5,500 unfavorable.EXAMPLE 18.3 Micro Pizza Heater: Market Demand A factory renovation is needed to build a compact microwave with a new shape, which will be called the Micro Pizza Heater. The low sales-volume prediction (20,000 heaters per year) has a subjectively estimated probability of 30%. The most likely market prediction is 30,000 units sold per year. The optimistic market prediction (30,000 sold the first year, with annual increases of 5000) has a subjectively estimated probability of 10%. In all cases, the factory equipment and the market will last 5 years. The net revenue will be $10 per microwave. What is the probability distribution for the net revenue?Question 13 Given your answers above for Questions 10-12 (especially Q12), should the shop hire that third mechanic? Group of answer choices Yes, the shop should hire the third mechanic. No, the shop should NOT hire the third mechanic.
- The total cost a power plant ($/megawatts) to produce electricity is Y=12+1.3X+0.24 X2 , where X is in megawatts. The estimated selling price of electricity is (16-0.23X) per megawatts. Find the value of X that maximizes profit. Group of answer choices Less than 10 megawatts Between 10-12 megawatts Between 12-14 megawatts More than 14 megawatts DontThe total revenue of a purely competitive firm from selling 6 units of output is $48. Based on this information, the unit price of the output must be Multiple Choice $8. $42. $288. $54.Need complete solution. A company produces and sells a consumer product and thus far has been able to control the volume of the product by varying the selling price. The company is seeking to maximize its net profit. It has been concluded that the relationship between price and demand, per month, is approximately D = 500 - 5p, where p is the price per unit in dollars. The fixed cost is $1,000 per month, and the variable cost is $20 per unit. Obtain the answer mathematically to the following questions: a.What is the optimal number of units that should be produced and sold per month? b. What is the maximum profit per month? c.What are the breakeven sales quantities and the range of profitable demand volume?
- A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150−0.01 × Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing) = $50,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved if the maximum expected demand is 6,000 units per year? What is the unit price at this point of optimal demand?A company determines that the demand function for a product can be modeled by p=220-0.02x where x is the number of units produced per week. The fixed cost is $12,000 and the variable cost is $80/unit. Find the number of units that yields the maximum profit.Is the following statement true or false: “Customers prefer product A more than product B if the customer value of product A is less than the customer value of product B." Group of answer choices False True
