The demand equation for handcrafted violins by a certain violin maker can be approximated by p=20-x where p is the price in thousands of dollars and x is the quantity of violins demanded. Find and interpret the marginal revenue for each of the given production levels. (a) x = 7 (b) x = 10 (c) x = 11
Q: The marginal revenue (in thousands of dollars) from the sale of x handheld gaming devices is given…
A: The Average Revenue is characterized as the revenue that an organization can profit from by selling…
Q: Assuming no transaction costs, which legal rule best harnesses private information to deal with…
A: Externalities occur when the production or consumption of products and services enforces costs or…
Q: You are the manager of a firm and the research depertment has estimated the total cost function of…
A: Given TC function = 440 + 7.75q + 2.5q2 Production = 10 units In given TC function the fixed cost…
Q: QUESTION 5 The price in an oligopoly market when companies compete is: O a Higher than in perfect…
A: Oligopoly market is a market form wherein there are a few firms only engaged in the production of…
Q: Consider a 2-good, 2-agent pure exchange economy where there are 10 units of each good and…
A: For Individual 1 - Utility function : Ua = 2xa1 + 2xa2 For Individual 2 - - Utility function : Ub =…
Q: QUESTION 7 When salaries decrease, what does happen in the market? O a. Total surplus decreases. O…
A: In a market, when taking about salary of an individual,it can be said that it affects the supply and…
Q: 3.If two construction companies merge, this is called a ________ merger, whereas if a bakery merges…
A: Horizontal merger is when two or more firm that produces the goods of same type merges. Vertical…
Q: Define International Political Economics
A: Economics is the branch of social science that studies shortage of resources. It investigates the…
Q: The price of a car you want is $37,000 today. Its price is expected to increase by $1000 each year.…
A: Introduction Goal seek method: The Goal Seek Excel function that is also known as What-If-Analysis,…
Q: how will labor shortages affect the long run aggregate supply, GDP, unemployment, inflation. draw a…
A: In the AS- AD model we have the aggregate demand curve and the aggregate supply curve. And in the…
Q: Alonso has preferences for sport cars (C) and paella (P) given by the utility function U(C, P) =…
A: Hicksian demands are function of prices (pc,pp) the utility level (U)
Q: The demand for labor for a firm operating in a perfectly competitive output market equals ____. The…
A: * ANSWER :- Based on the given information the answer is given in following steps
Q: Mary O’Leary’s company ships fine wool garments from County Cork, Ireland. Five years ago she…
A: EUAC refers to the equivalent uniform annual cost. It is the annual cost incurred by the owner of…
Q: In the aggregate demand and aggregate supply model, when does the aggregate quantity of goods…
A: In AD/AS model, the aggregate demand curve will increase or shift to the right when any of the…
Q: Changes in the money supply are important because There is a relationship between changes in the…
A: "Since you have asked multiple questions, we will solve first question for you . If you want…
Q: Possibility A B C D Entertainment (E) (units) 90 60 30 0 Consider the above PPF. What is the…
A: In economics, the opportunity cost is the worth of what you have to give up in order to choose…
Q: Assume a constant marginal cost of $0.01/kwh for hydro and $0.09/kwh for natural gas given installed…
A: Marginal Cost for Hydro = $0.01 Marginal Cost for Natural Gas = $0.09 Interest Rate = 8.76% Amount…
Q: In the given question What will be the Net indirect taxes if the subsidies are 610 and Indirect…
A: An Subsidy is any monetary guide given by an administration to a maker or vender of a decent or…
Q: What is the average variable cost associated with 38 units of output? $1.05 $.95 $.42 O $1.37
A: Total cost refers to the total amount of cost involved in producing the goods and services. These…
Q: inemegansMei :mx3 Task 3: During the last 10 years, a corporation's net profit increased year over…
A: Analyzing random occurrences is the focus of probability theory. A random event's outcome cannot be…
Q: The figure above shows a housing market with a rent (price) ceiling equal to $1500. With the rent…
A: Producer surplus is the discrepancy between a buyer's willingness to pay and the commodity's market…
Q: Discounts and incentives are demand options. O True
A: Demand is the consumer's desire to buy a specific product or service. Market demand is the demand…
Q: 3. Does the following figure depict a long-run or short-run scenario? Explain. 0 me atc avc I
A: In short run, there is atleast one input is fixed and others are variable. This means there is…
Q: Alfred is a risk-averse person with $100 in monetary wealth and owns a house worth $300, for total…
A: Given, Monetary Wealth = $100 House Worth = $300 Probability that his House is Destroyed by Fire…
Q: Assume a closed economy (no import or export) characterised by the following equations describing…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: If the absolute value of elasticity of demand for chocolate is 0.64 then the demand for chocolate is…
A: Price elasticity measures the change in quantity due to change in price. Income elasticity measures…
Q: 3.2 Practice Nar 1.) Using the Knaster Inheritance Procedure, describe a fair division for three…
A: A B C House 145000 149999 165000 Farm 135000 130001 128000 Sculpture 110000 80000 127000
Q: Suppose that one day of labor in each country produces the following quantities of fish and cheese:…
A: Comparative advantage is an economy's ability to produce a specific product or service at a lower…
Q: You and your friend who just graduated visit a local ice cream parlor. By showing your student id…
A: There are two students, among which one is showing her id card and getting the discount of 1$ on ice…
Q: Question 14 The diagram below shows the marginal cost of abatement for each of two firms, A and B.…
A: An E(externality )is a cost that is not borne by the person who generated it. The externality can be…
Q: If px = 5 and py 40 65 96 79 = 4, and I = = 120, what is Gina's utility under optimal consumption?
A: The goods that can be replaced with each other is known as PS(perfect substitute).The rise in price…
Q: An investment has the following structure: You are required to spend $2,327.41 today, and 20 years…
A: Internal rate of return IRR is the discount rate that makes the net present value of a cash flow…
Q: the price at which a 91-day Treasury Bill is sold falls, which of the following statements are true?…
A: Treasury bills are the bills that are issued by the government of a county, which can be purchased…
Q: In determining real GDP economists adjust the nominal GDP by using the: Select one: a. consumer…
A: Introduction: Nominal GDP: Gross domestic product (GDP) that is calculated using current market…
Q: 4. Sherry runs a dog grooming business. She has rent of $5,000 per month and must have an assistant…
A: In economics total cost (TC) is the minimum dollar cost of producing some quantity of output. This…
Q: Edit que 3. Consider the following production function: y=f(L,K)=min{L,2K} . (c) Determine the…
A: In a long run perspective of production all the inputs are variable in nature in contrast to short…
Q: Find Alonso's Marshallian demands and indirect utility function gc (Pc, Pp, I) gc (Pc, Pp, I) gc…
A: Marshallian demands and indirect utility both are function of prices (pc, pc) and income (I).
Q: Crowding out effect refers to government fiscal policy tools affecting _____? A. private spending B.…
A: Crowding out is the elimination of spending of some private spending due to increase in public…
Q: Define the concept of scarcity. Explain the significance of this concept in relation to the concept…
A: Scarcity: The scarcity occurs where demand tends to be larger than available resources. Thus,…
Q: Individual demand curve and aggregate demand curve are both downward-sloping, but for different…
A: The entire amount of goods and services that all consumers in the economy are requesting is referred…
Q: 1. What does economist and EconTalk host Russ Roberts think is “single deepest contribution of…
A: An economist is a specialist who investigates how a society's resources affect its output or…
Q: Consider a oligopoly with two firms. Each firm has constant marginal cost of 3 dollar per unit and…
A: Given information: P = 15 - Q ---> Market demand curve Where Q = Q1 + Q2 Q1 is the quantity…
Q: IS FIGURE 1. IS FIGURE 2. LM LM
A: Figure 1. Shows the IS curve and the LM curve. The IS curve depicts the saving-investment curve…
Q: D Question 13 When price is below average variable cost, a firm in a competitive market will…
A: For a competitive firm, price on which it has to sell its output is given.
Q: Welcome to Nellyville! The table below contains statistics you can use to calculate the various…
A: Unemployment happens when somebody is willing and able to work yet doesn't have a paid job. The…
Q: Explain what is the relationship between marginal cost and average total costs for a firm or…
A: The monetary value of all the resources used to make a product, according to economic theory,…
Q: The current poverty level for a single household is $12,760 . For a house hold of four it's…
A: Medicaid is referred to the government program, which helps in paying up the medical cost for the…
Q: Suppose that the market is comprised of a single firm, which faces a de- mand curve of P = 110 − 3Q,…
A: A market structure characterized by a single seller selling a product that is unique to the market.…
Q: In the United States, medical doctors earn much higher incomes than teachers. This occurs because…
A: Income is the net sum of all payments received during a specific period of time. The sums of money,…
Q: Briefly explain the following terms with regards to Economical evaluation of environmental goods and…
A: Economical Evaluation of Environmental goods and services are referred to various techniques used to…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A Los Angeles firm uses a single input to produce a recreational commodity according to a production function f(x)=4x1/2, where x is the number of units of input. The price of the commodity is $100 per unit, and the input cost is $50 per unit. The fixed costs are zero. A: Write down the firm’s profit function. C:Find the profit maximizing amounts of input and output. What is the maximum profit? C:Suppose that the firm is taxed at $20 per unit of its output (note it is a quantity tax) and the price of its input is subsidized by $10 per unit. What is the new input and output levels? What is the new maximal profit?A firm uses a single input to produce a commodity according to itsshort-run production function f(x) = 4√x, where x is the number of units ofinput. The commodity sells for $100 per unit. The input cost $50 per unit.(a) Write down a function that states the firm’s profit as a function ofthe amount of input.(b) What is the profit maximizing amount of input and output?(c) Suppose the firm is taxed $20 per unit of its output and the priceof its input is subsidized by $10, explain in detail how this will affect the newinput and output levels?The marginal and average total cost curves for barbers in an area are cosntant at $12.00/haircut. The daily demand curve for haircuts in the area is given by: P = 22 - 0.001Qd where P is the price in dollars per haircut and Qd is the daily quantity demanded in number of haircuts. Haircuts are provided in a perfectly competitive market and each barber can provide exactly 25 haircuts daily. Suppose that the government decides to limit the number of barbers to 320. Each year, barbers must obtain a government-issued license to cut hair. Based upon the previous information: a. What will be the long-run equilibrium price for a haircut given there are only 320 licensed barbers?b. How much economic profit will each licensed barber earn daily?
- A firm uses a production function of the form Y=z*K^0.33*Nd^0.67 and chooses labor input Nd to maximize profits taking the wage rate w that it pays per unit of labor as given. First, write down the profit function of the firm. Assume z=10, K=100, and wage w = $20. The government now introduces a wage subsidy to help out the firm. The wage subsidy s = $4 per unit of work. Given this subsidy solve for the new optimal output level of the firm. Y* =A firm’s profit is given by the following function, which maps output q ≥ 0 onto profit (revenue minus cost). π(q) = 11q − (q 2 + 2q + 10) = −q 2 + 9q − 10, The firm is constrained by a quota such that output q cannot be greater than a value Q. (a) What is the domain of this profit function? 1 of 2 ECON10071/20071 - 2020/21 (b) Given this, what is (global) profit maximising output when (i) Q = 6, and when (ii) Q = 2.Suppose the demand for a product X produced by a company AAA is given by the following function: QX = 2000 - 250*PX. At what price per item of the product X (EUR) can this copmany maximize its total revenues? Fill in the Table gaps: Demand function Price function Total Revenue (EUR) Marginal Revenue (EUR) Quantity Price per product (EUR) Q = 2000 - 250P P = ? TR = Q*P MR = dTR/dQ = 0 Q = ? P = (2000 - Q)/250 250P = 2000 - Q TR = Q*(2000 - Q)/250 MR = 8 - 2*Q/250 Q/125 = 8 P = (2000 - 1000)/250 P = (2000 - Q)/250 TR = 8*Q - Q^2/250 8 - Q/125 = 0 Q = 1000 P = 4 Alternative solution Demand function Total Revenue (EUR) Marginal Revenue (EUR) Price per product (EUR) Q = 2000 - 250P TR = Q*P MR = dTR/dP = 0 2000 - 500*P = 0 TR = (2000 - 250P)*P MR = 2000 - 2*250*P 500*P = 2000 TR = 2000P - 250P^2 MR = 2000 - 500*P P = 4
- Suppose the demand equation is 200x + 10p = 10000, where x is the num- ber of items sold when the per unit price is p dollars. Determine (a) the rev- enue function,(b) the domain of the revenue function,(c) the revenue derived from the sale of the 20th item the marginal revenu(de)wthen x = 20,level of production that maximizes the revenue,and the maximum revenue.Market Failures in Imperfect Competition Efficiency in exchange is satisfied with the equality between MRS and price ratios of the goods. Efficiency in production is satisfied with the equality between MRTS and the price ratios of factor markets (labor and capital; hence, wage and rent). Efficiency in product mix is normally not satisfied under imperfect competition because MRS is not equal to MRT. Answer the following: a. If there is an imperfect competition in both the goods market (X and Y), say that Px/Py is both under monopoly, is it possible for economic efficiency to be reached? How? Explain in words and mathematically. b. If there is an imperfect competition in both the two factor market (L and K), say that w/r or Pl/Pk is both under monopoly, is it possible for economic efficiency to be attained? How? Explain in words and mathematically.Nousaku estimates that the total daily revenue of producing q units of KAGO basket is (R(q) = (102 - (675/q+4) - q) thousand yen. What is the marginal revenue when output is 6? Interpret your answer.
- Windies Cricket manufactures Windies supporter jerseys. The quantity q, of thesejerseys demanded weekly is related to the wholesale price per jersey p, by thefollowing equation:? = −0.006? + 15The weekly total cost incurred by Windies Cricket for producing q jerseys is:?(?) = 38? − 0.02?2 + 30,000a. Determine an expression to represent the weekly Revenue functionb. Determine an expression to represent the weekly Profit function.c. Calculate the weekly Revenue when ten dozen jerseys are produced and sold.d. Will Windies Cricket record a loss or profit if they were to produce and sell 2450jerseys?e. If Windies Cricket wishes to maintain a total cost less than $42,000.00, whatrange(s) of Windies jerseys should be produced. f. Calculate the equilibrium price and quantity for Windies jerseys.Suppose the revenue (in dollars) from the sale of x units of a product is given by R(x) = 56x2 + 65x 2x + 2 . Find the marginal revenue when 25 units are sold. (Round your answer to the nearest dollar.)$ Interpret your result. When 25 units are sold, the projected revenue from the sale of unit 26 would be $ .a) Calculate the technical rate of subsitution b) Derive the cost function c(w1,w2,y) c) When w1 = 5 and w2 = 8, calculate the average cost AC(y) and the marginal cost MC(y). For y > 0, which one is larger, AC(y) or MC(y)? d) When w1 = 8 and w2 = 9, derive the supply function y(p) e) Suppose that Pot & Gold Inc has to pay a quasi fixed cost of $50. When w1 = 8 and w2 = 9, derive the supply function y(p) for Pot & Gold Inc
