Economics:
Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
Question
Chapter 29, Problem 4E
To determine

To compute:

The number of units to be employed when price has fallen from $4 to $3 to $1.

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You and your friends love to go fishing. There is a sporting goods store in your neighborhood that sells a fishing pole for $82 but costs the store $60, and a fully stocked tackle box that sells for $58 but costs $40. Assuming the mark-up policy is linear, determine the equation that relates price (P) to cost (C). Following this same mark-up policy for other items, what would be the price of a pair of waders which cost the company $80?
which statement is true and why are the others false.justify Moving production from a high-cost producer to a low-cost producer will decrease total surplus;TRUE Suppose the United States changed its laws to allow for the legal sale of a kidney and the government allowed a free market in organs for transplant then there would be a decrease in the price of a kidney and an increase in the shortage of kidneys for transplant;TRUE If a good is not being produced by sellers with the lowest cost, then the market reflects inefficiency in the allocation of resources:FALSE Assume there are only three sellers in a particular market. The cost of production for Annie is $50, for Beth it is $40 and for Cathy it is $35.  If the price in the market is $45 then Annie will sell the product but Beth and Cathy will not sell. :FALSE Suppose favorable weather provides increases apple production. As a result, consumer surplus in the market for orange juice decreases because the supply curve of apple juice…
A firm produces two different kinds A and B of a commodity.The daily cost of producing x units of A and y units of B is C(x,y)=20(x^2+xy+y^2).Suppose that the firm sells all at a price per unit of 240 for A and 180 for B.  1)find the daily production level that maximizes profit and confirm its maximum. 2)Suppose the firm is required to produce exactly 5 units in all.what are now the optimal production level of x and y.
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