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# Microeconomics

### Dicussion question.

Should the club cover explicit and implicit costs? Imagine that you are asked to consult with a drama club that puts on a play every year. The club asks you: How much should we charge for tickets if we want to cover our costs? You begin by listing the club's explicit costs and implicit costs and then make a recommendation whethe

### Total revenues for quantity sold

The teenager company makes and sell skateboards at an average price of \$ 70 eacch. during the past year they sold 4000 of these skateboards. the company believes that the price elasticity for this product is about -2.5. if it decreases the price to \$ 63 what should be the quantity sold? will revenue increase? why?

### Unit Price of a Product with Markup

The fully allocated cost of a product is \$45. If the firm wants to use a markup of 30%, then it should charge what unit price?

### Certainty equivalent coefficient

An individual is indifferent between a certain payment of \$20 and a game that will pay \$50 or nothing with equal probabilities. The individual has a certainty equivalent coefficient of what? 0.20 0.40 0.80 2.50

### Determining the Minimum Cost Combination

Combinations Qty Corn Qty Potatoes A 500 1650 B 550 1460 C 600 1280 D 650

### Microeconomics help

One of the lessons of economics is that "there is no such thing as a free lunch." That means that businesses, consumers and whole societies face tradeoffs whenever they make a decision. * Explain a decision that you have made at work or concerning your career. * Identify and explain the tradeoffs you faced. *

### Prisoner's Dilemma

Please see problem attached. Please determine if firms A and B in the scenario below face the prisoners' dilemma, and explain why they do or don't face this dilemma. ________________________________________________________________________ Firm B Low High ____________________________________

### Marginal Revenue

Use the information about marginal revenue that is presented in the table to determine the level of output that maximizes total revenue. Output 1 2 3 4 5 6 7 8 9 MR 50 40 30 20 10 0 -10 -20 -30

### Walt Disney's Californian locale

When Walt Disney built Disneyland in Anaheim, California; he failed to realize the impact on the neighboring properties. When Walt Disney World in Orlando, Florida, was conceived, Disney did not want a repeat of Anaheim. Disney secretly began purchasing property in the Orlando area. Disney formed hundreds of fake companies to

### Microeconomics and market systems

You are a painter, and the price of a gallon of paint increases from \$3.00 a gallon to \$3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following: 1. compute the price elasticity of demand for paint and show your calculations. 2. decide whether the demand for paint is ela

### Microeconomics

Suppose a monopolist sells its good to three people. Each person can only purchase one good. The first person is willing to pay \$20 for the good, the second person is willing to pay \$18, and the third is willing to pay \$16. If these three people make up the entire market for this monopolist, the monopolist would face the demand

### Best Buy - maximize profits

Please answer the following question: Should Best Buy, Inc., continue, expand, or reduce current operations in order to maximize profits. Explain your reasoning.

### Profit Maximization

Fill in the table and tell me where a competitive firm faced with this cost structure would maximize profit, if price is equal to \$50. Q....TC...MC...TVC...TFC...AVC...AFC 0....100 2....180 4....210 6....260 8....350 10...480

### A risk-averse manager

A risk-averse manager is considering a project that will cost \$100. There is a 10 percent chance the project will generate revenues of \$100, an 80 percent chance it will yield revenues of \$50, and a 10 percent chance it will yield revenues of \$500. Should the manager adopt the project? Explain

### product differentiation competition

The concern that monopolistic competitive firms have about product attribute , services to customer or brand names are aspects of a. allocative effeciency in the industry b. collusion in the industry c. product differentiation d. concentration ratios

### Cost-volume-profit analysis

Manning Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Manning is currently operating at full capacity with limited machine time. Sales and production information relevant to each model follows.

Provide a graph of the solution of company with a cost function of C(Q)=50+Q^2 and a demand function of P=100-2Q, showing profits and deadweight loss in the graph. Also, provide the actual amount of deadweight loss.

### Financial health of Walmart

If you could, How would you measure the overall financial health of Walmart? What are the good and/or the bad signs, if any, in your outlook?

### Options for reducing credit card interest rates

You have been hired as a financial consultant to advise clients on how to reduce credit card debt. On average, your clients pay 24% in annual compound interest. Research the current interest rate on credit cards in the USA. Explain the options available to clients to reduce their rates. Be sure to consider fees in your analysis

### General Motors (GM)current market conditions

In 250 words analyzing the current market conditions of the General Motors (GM) by addressing their productivity (consider the law of diminishing marginal productivity)

### General Motors (GM)

General Motors (GM) In 250-300 words, discuss the market structure in which General Motors operates and what strategies they used to maximize profit. What segment market should General Motors (GM) target in the U.S. based on today's economic status? If GM go into liquidation, should there be government intervention a

### Maximize Profit and Revenue

An oligopolist, the Bramwell Corporation has estimated its demand function and total cost functions to be as follows: Q=25-0.05P TC=700+200P Quanitites to be used 1 to 14 What will be the price and quantity if Bramwell wnat to 1) Maximize Profit 2) Maximize Revenue 3) Determine the maximum revenue and the maximum pr

### Economics

Need to compare my answers (45min) Thanks (I need this in 10 MINUTES) the text for 14 is Refer to Figure 7-1. When the price is P1, consumer surplus is a A. b A + B. c A + B + C. d A + B + D.

### Dominant Strategy - Airline Example

Profits are shown for united airline and american airline, the airline can either hold prices where they are or cut prices. does either airline have a dominant strategy? Explain in detail: see attachment

### Identify one or more negative externalities that have an affect on an individual. Could existing or proposed laws have prevented this from happening?"

1. Identify one or more negative externalities that have an affect on an individual. Could existing or proposed laws have prevented this from happening?" 2. What are public goods? Why these goods are not produced in the private sector?

### Correlate the relationship between average total cost and marginal cost

What is the relationship between average total cost and marginal cost?

### Microeconomics and managerial economics

Which fo the following statements is correct? a) Managerial decisions are affected primarily by microeconomic forces. b) Managerial decisions are affected primarily by macroeconomic forces. c) Managerial decisions are affected by both microeconomic and macroeconomic forces d) By and large, managerial decisions are not aff

### What is the Efficient Outcome?

A mill and fishery operate on a river. The fishery can operate at one of two locations - upstream or downstream. Pollution lowers the profits of the fishery: without pollution, profits are \$300 upstream and \$500 downstream. With pollution, profits are \$200 upstream and \$100 downstream. The mill earns \$500 profit. Technology is

### Present value on \$104 a year from now

You expect to receive a payment of \$104 one year from now. Your discount rate is 4 percent. What is the present value of the payment to be received? Suppose that the discount rate is 5 percent. What is the present value of the payment to be received?

### Movie Theater Price Discrimination

You run a chain of movie theaters, so you commission a marketing study that categorizes your potential customers into 10 equal-sized groups according to what they're willing to pay for a movie, (\$10,\$9,\$8,\$7,\$6,\$5,\$4,\$3,\$2,\$1). It turns out that the low-value customer groups, those with values (\$5,\$4,\$3,\$2,\$1), are all over 65