) You have a bicycle rental business which has 500 adult bikes and 250 children's bikes. The bikes have a fixed cost of $1,000 to maintain, but no marginal cost to rent them out. Demand is below. Price/hour $10 98765432 1 Adults 50 100 150 200 250 300 350 400 450 500 Children 0 0 0 0 0 50 100 150 200 250 a. If you, by law, can only charge one price, what would it be, and to whom? b. If you could charge adults and children different prices, what would be the prices to each group?
Q: Consider a two-person (1 and 2) two good (X and Y) exchange economy. The utility function of person…
A: Utility refers to the number that represents the satisfaction level or usefulness of a consumer in…
Q: Consider an economy at equilibrium according to the IS -LM model. Suppose the government implements…
A: The output and interest rate combinations for which AD equals output are represented by the IS…
Q: Services Investment Income 195 50 23 0 417 Transfers Asset Sales What is the balance on goods for…
A: The main economic activities of a nation, such as its capital markets and services, are included in…
Q: 8. Price elasticity of supply in the short run and long run The following graph shows the long-run…
A: The price elasticity of supply is calculated as the percentage change in quantity supplied divided…
Q: Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the…
A: Equivalent Units of production:Equivalent units of production represent the number of fully…
Q: The accompanying diagram shows two budget deficit functions for a hypothetical economy. Suppose the…
A: The imbalance in government revenue is called the budget deficit. If the government's spending is…
Q: What happens in the long run in monopoly and monopolistic competition? Barriers to entry allow…
A: Monopoly is a form of imperfect competition. There is one firm. The number of consumers is high.…
Q: In the above graph the profit maximizing quantity is: 160 150 O 120 105 135
A: A perfectly competitive market is one in which a big number of enterprises sell similar products to…
Q: S2628 $ 44 40 36 32 24 20 16 12 4 0 Monopoly Firm A E C MC B 0 4 02. What is the maximum Total…
A: A monopoly firm is a single producer in the market and produces unique products. Due to this, the…
Q: The formula for the arc price elasticity can be written (where AQ denotes the change in Q) as: h =…
A: Thе arc pricе еlasticity of dеmand mеasurеs thе rеsponsivеnеss of quantity dеmandеd to a changе in…
Q: Suppose you have a production technology given by f(x₁,x2) = min{2x₁,x2} and you are producing at…
A: For part (c), since the production function at x1=10 and x2=20 is limited by 2x1, increasing x2…
Q: 03. What price would be set by a regulatory body, were it intent on assuring allocative efficiency?…
A: A market achieve allocative efficiency when it produces at the intersection of demand and marginal…
Q: what are business issues how to overcome it and recommedations
A: The provided set of questions has been answered from the generalized perspective of 'Business…
Q: Refer to the Figure 13-2. Suppose that these diagrams refer to Canada. If the interest rate was…
A: Demand:Demand is the desire of an individual ability and willingness to pay for a product. The…
Q: Shift the demand curve, the supply curve, or both on the following graph to illustrate both the…
A: Demand curve represents quantity demanded corresponding to different price level. Demand curve is…
Q: In the last 30 years, collusion has become a. easier because contracts have become stronger b.…
A: This can be described as a form of market in which no single producer or consumer has the power to…
Q: Your Question: Assume that Canada is an importer of televisions and that there are no trade…
A: Tariff is a type of tax imposed by the government on imported goods in the country. Government…
Q: 3. Burger Prince is considering opening a new restaurant in Colton, Loma Linda, Upland. The…
A: Comparative advantage is an economic principle that suggests it is more efficient for each party…
Q: (a) Assuming an economy is experiencing inflation, what are discretionary fiscal policy options that…
A: Macroeconomic analysis offers a comprehensive picture of an economy's financial landscape. It…
Q: Permanent Income Hypothesis to discuss why tax rebates may have no effects on aggregate demand…
A: Tax rebates are monetary incentives that governments offer, usually in the form of refunds or lower…
Q: The demand for a product is more inelastic: the lower the average income of consumers. the poorer…
A: The problem is related to understanding the factors that influence the elasticity of demand for a…
Q: Suppose a wealthy widow is willing to give $250.00 to charity if the cost in terms of foregone…
A: Opportunity cost refers to the value of an activity or good that has been abandoned or foregone…
Q: Evaluate the positive and negative impacts of Globalisation in term of Equality, Labor Condition and…
A: This can be described as a form of market in which no single producer or consumer has the power to…
Q: 5. Discrimination in the labor market The following table exhibits the name, gender, height, and…
A: The minimum wage that an individual is willing to accept in return for his/her services is known as…
Q: P-TV and QRS-TV are planning their fall line-up. Suppose that sit-coms are more popular than reality…
A: Given
Q: 27. If a monopolist is a discriminating monopolist, it will sell the same good a. at two different…
A: One seller or manufacturer controls the entire market in a monopoly. In a monopoly, the supply and…
Q: A recognized pharmaceutical company buys and sells a dangerous chemical. This substance is purchased…
A: Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…
Q: 7.11 Determine the rate of return for the following cash flow series. N i=? 300 300 300 300 7 12,000…
A: Investment refers to the allocation of resources, typically money, with the expectation of…
Q: 3. Changes in the money supply The following graph represents the money market for some hypothetical…
A: The supply of money is defined as the amount of money in the economy in total. It includes the…
Q: Consider the housing construction industry. Assume that the industry is perfectly competitive in…
A: Labor demand and supply refer to the interaction between employers (firms or businesses) and workers…
Q: Consider the price function y²-5Y+26, 0≤Y ≤ 10 Y≥ 10 P(Y) = where y₁ denotes the output of firm 1…
A: The Cournot duopoly model is a theoretical framework in economics that examines the strategic…
Q: 545 226 2 $ 40 36 32 28 24 20 16 12 8 4 0 Monopoly Firm A E C MR MC 0 4 8 12 16 20 04. At which…
A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…
Q: The following table shows output per hour produced by the different units of labor. Table 14.1…
A: ***Since the student has posted multiple questions, the expert is required to solve only the first…
Q: Suppose that a firm is in a perfectly competitive market has a long-run cost function given by the…
A: This graph for the Long Run Average Cost (LRAC) and Marginal Cost (MC) for a firm in a perfectly…
Q: Price Po 0 ATC AVC Refer to the diagram above. At the point marked m, m e Qo MC DD Quantity
A: A homogeneous product that has a large number of sellers and buyers is known as the perfect…
Q: Suppose a perfectly competitive firm faces the following situation: P = $10, output = 3,000, ATC=…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: 3 Suppose demand and supply are given by: P = 100 - Qa P = 10 + 20a a. Find equilibrium price and…
A: Since you have posted multiple questions with multiple sub parts, we will provide the solution only…
Q: Scooter's Scooters is a large American manufacturer of electric scooters operating out of Mesa.…
A: Economies of scale is when the increase in production decreases the ATC. Diseconomies of scale is…
Q: Deadweight Loss and Demand Elasticity. Using the linked figure as a starting point, consider a…
A: Demand elasticity measures how sensitive a good's quantity desired is to variations in its price. It…
Q: 4. Interpreting the supply of labour The following graph depicts the daily labour supply curve for…
A: The labor supply curve shows a positive relationship between wage rates and labor hours. It shows at…
Q: Suppose that the basket of goods purchased by the typical consumer costs $188.80 this year and it…
A: Consumer Price Index ( CPI ) is an instrument that is used to measure the inflation in the economy.…
Q: Suppose that new machines cost $504 and the value of marginal product of new machines is MPK = 246 -…
A: It is the change in total production for every unit of additional production.MPn=TPn-TPn-1
Q: can you explain how they got M=y^2/2 and L=2y^2 from part b of this question
A: The production function describes the relationship between inputs used in production and the output…
Q: Which one of the following is the output level at which the firm will produce? Use the graph for a…
A: A perfectly competitive market is one in which a big number of enterprises sell similar products to…
Q: Professor Petro considers coffee from La Prep (denoted as good !) and coffee from Tim Horton's…
A: Utility FunctionU(l, h) = 4l + hl & h are 2 types of coffeeBudget m = 60PricesPl = 3Ph = 1.5
Q: ABC company is planning to double their production capacity in 2023. The construction cost of a…
A: Economy of Scale refers to the cost advantages that a business can achieve by increasing its…
Q: As you look at the Product Life Cycle shown above, you notice that the space between sales and…
A: Thе product lifе cyclе is a concеpt that dеscribеs thе stagеs a product goеs through from its…
Q: The article has provided an assessment of performance management in an organisation, analyse the…
A: The provided question has been answered from the perspective of 'Business Economics.The immediate…
Q: Figure 3 Refer to the following diagram of the open-economy macroeconomic model to answer the…
A: Import quota is the quantitative restriction which is placed on the imports and the importer cannot…
Q: The market supply curve shows the quantity of a good or service that , holding other possible…
A: Market supply curve is an upward sloping curve that shows the relationship between price and…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
- A publisher faces the following demand schedule for the next novel from one of its popular authors:Price Quantity Demanded100 090 100,00080 200,00070 300,00060 400,00050 500,00040 600,000 530 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishing the book is aconstant $30 per book.a. Compute total revenue, total cost, and profit at each quantity. What quantity would a profitmaximizing publisher choose? What price would it charge? b. Compute marginal revenue. (Recall that MR=∆TR/∆Q.) How does marginal revenue compare tothe price? Explain. c. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantity do themarginal-revenue and marginal-cost curves cross? What does this signify? d. In your graph, shade in the deadweight loss. Explain in words what this means. e. If the author was paid $3 million instead of $2 million to write the book, how would this affectthe publisher’s decision regarding the price…ADJ Enterprises produces hydrothermocorticoids. The table below shows the costs of producing various quantities of hydrothermocorticoids. Quantity Total Cost Average Cost 0 $0 -- 1 $10 $10.00 2 $12 $6.00 3 $15 $5.00 4 $19 $4.75 5 $24 $4.80 6 $30 $5.00 7 $45 $6.43 ADJ sells its hydrothermocorticoids for $5 each (that is the price regardless of the number of hydrothermocorticoids it sells). Use the Profit-Maximizing Rule to explain the quantity that ADJ should produce to maximize its profits. You may use a calculator. You should explain the details of any calculation you perform. You should identify, explain, and apply the concept you use to answer this question. To receive full credit, your explanation must show all steps in any calculations you perform. Your explanation must also incorporate the profit-maximizing rule – state what that rule is and explain how it applies to ADJ’s situation. Note that it is…Suppose we know that p=1,056-D/5, where p = price in dollars and D = annual demand. The total cost per year can be approximated by $1,000+ 2D^2 a.Determine the value of D that maximizes profit. b. Show that in part(a) profit has been maximized rather than minimized. c. Find the maximum profit
- The global pandemic 2020 has promoted a race to capture the market for introducing effective vaccine and treatments. (please use excel/word) a)- If PFIZER is the sole vaccine provider given the following information, answer the questions below: Output Price/Unit Total Cost 1 5500 1000 2 5000 1200 3 4500 1500 4 4000 2500 5 3500 4000 6 3000 5700 7 2500 7500 8 2000 9400 9 1500 11400 10 1000 13500 Given the tabular information above find the profit-maximizing output and price also illustrate the same using the two-dimensional labeled diagram. Show the calculation as well. (use excel) b)- Assume if many firms enter into the business of providing vaccine determine: How the demand curve of PFIZER would change and how it would now maximize its profit? The kind of market structure now PFIZER is forced to operate in? Also,…For problems 1 – 4: The Dolan Corporation, a maker of small engines, determines that in 2019 the demand curve for its product is P = 2,000 - 50Q where P is the price (in dollars) of an engine and Q is the number of engines sold per month. To sell 30 engines per month, what price would Dolan have to charge? A.4500 b.1000 c.500 d.450Given Question #1 Cost function C= 3000+6Q Q = 4400 - 200Q Q= 1600 P = 14 Profit= 22400-12600 = 9800 Question #2 Q=$480 - Laredo Q=$1120 - SA Question #3 Ed=−1.25 - Laredo Ed=−0.55 - SA 0.5<0.8− markup index it is charging less. - Laredo 0.64<-1/-0.55--markup index it is charging less. - SA Please answer question number #4 A-C
- 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 strategyA company produces a special new type of TV. The company has fixed costs of $451,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2600 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2300. Assume a linear demand. If the company sets the price at $3800, how much profit can it earn? It can expect to earn/lose $enter your response here. (Round answer to nearest dollar.)profit maximization price combinationA state owned company is providing electricity at the priceof $0.105and faces the demand for electricity P=1.255 - 0.001Q The company has acost function C(Q)=100.625 + 0.105Q The state sells the firm, now the firm’sonly goal is profit maximizationa What is the number of kilowatt hours of electricityproduced and what is the price that the company will charge?b Compute the price elasticity at the profit maximizingprice combinationc How much more profit will this firm make as a result ofprivatization
- 1. Problems and Applications Q1 A publisher faces the following demand schedule for the next novel from one of its popular authors. Price Quantity Demanded (Dollars) (Copies) 100 0 90 100,000 80 200,000 70 300,000 60 400,000 50 500,000 40 600,000 30 700,000 20 800,000 10 900,000 0 1,000,000 The author is paid $2 million to write the novel, and the marginal cost of publishing the novel is a constant $10 per copy.5. El Sol Inc. produces beach towels. The cost of each towel is $ 4.00 and it sells for $ 10.00 after the markup on its cost. Similar towels sell for $ 8.00. How much should each towel cost you to be able to adjust to the market price and keep your profit margin?In figure 9.2 what is the marginal cost at a quality of 120 units? A.) 35 B 40 C 55 D 60 E 4,800