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Microeconomics

Pricing With and Without Price Discrimination

See the attached file. Indoor Water Park caters to both locals and out-of-state visitors. The demand for day-passes to the water park for each market segment is independent of the other market segment. The marginal cost (which also equals the average variable cost) of providing service to each visitor is $5 per day. Its fixed c

An economic profit

Assume a market is currently earning economic profit. What are some potential barriers to entry, which would prevent new competitors from entering the market and competing those profits away? Why do perfectly competitive firms make zero economic profit in the long run?

Deciding force for price

Who decides what the product is worth? If people don't think the price is acceptable, will they buy the product? What does the theory of demand tell us?

Inventory Control Methods

Jim Overstreet, inventory control manager for Itex, receives wheel bearings from Wheel-Rite, a small producer of metal parts. Unfortunately, Wheel-Rite can only produce 500 wheel bearings per day. Itex receives 10,000 wheel bearings from Wheel-Rite each year. Since Itex operates 200 working days each year, its average daily dema

Hypothesis Testing - 15.18 Sixty-four students in an introductory college economics class were asked how many credits they had earned in college, and how certain they were about their choice of major. Research question: At α = .01, is the degree of certainty independent of credits earned? ... [See the attached Question File.]

15.18 Sixty-four students in an introductory college economics class were asked how many credits they had earned in college, and how certain they were about their choice of major. Research question: At α = .01, is the degree of certainty independent of credits earned? Certainty Credits Earned Very Uncertain Somewhat Cer

Pareto-efficient changes

Which of the following are actual Pareto-efficient changes? Explain briefly. A) You borrow three oranges for $1 from a street vendor. B) You are near death from thirst in the desert and must pay a passing vagabond $10,000 for a glass of water. C) A mugger steals your wallet. D) You take a taxi ride in downtown Manhatte

profits and payoffs for Air 'R' Us

Please see attached. Untied and Air 'R' Us are the only two airlines operating flights between Collegeville and Bigtown. That is, they operate in a duopoly. Each airline can charge either a high price or a low price for a ticket. The accompanying matrix shows their payoffs, in profits per seat (in dollars), for any choice tha

The market demand curve is QD= 160 - 4P.

The market demand curve is QD= 160 - 4P. A monopolist's total cost curve is TC = 6Q2 + 15Q + 50. a. Find the profit-maximizing level of output and price for a monopolist. b. Find its average cost at that level of output. c. Find its profit at that level of output. Please help

Federal Reserve

Go to the Federal Reserve's home page at www.federalreserve.gov. Who is the chairman of the board? For how long has he or she served? Who are the governors of the board? The site publishes a short biography for each governor. What experience and/or degrees do all members have? What experiences and/or degrees differ among mem

Second Degree Price Discrimination

"Will a monopolist's total revenue be larger with second-degree price discrimination when the batches on which it charges a uniform price are larger or smaller? Why?"

Naming a Price Ceiling or a Price Floor

If rent controls are so counterproductive, why do cities impose them? Who is harmed by rent controls? Who is helped? Give an example of a price ceiling and an example of price floor. Which one causes a shortage of a good - a price ceiling or a price floor? Which one causes a surplus?

Help with P=MR=MC

In a perfectly competitive firm, with the current price of a product being $42.00, and a marginal cost function of MC=.006Q. How many cases would the firm have to produce in order to maximize profits?

Npv

Discuss how NPV is calculated and state the decision rule.

Profit Maximizing Quantity and Price

Suppose a monopolist faces demand P=400-4Q^d and has a constant marginal cost MC=80. Graph, Demand, Marginal Revenue, and Marginal Cost. Find Profit Maximizing Quantity and Price the monopolist will charge.

NPV

A proposed project should be accepted if the net present value is a. positive. b. negative. c. larger than the internal rate of return. d. smaller than the internal rate of return.

Consumer Surplus Analysis

Please help me with the given microeconomics problem for an assignment: There are six potential consumers of computer games, each willing to buy only one game. Consumer 1 is willing to pay $40 for a computer game, consumer 2 is willing to pay $35, consumer 3 is willing to pay $30, consumer 4 is willing pay $25, consumer 5 is

On Thursday nights, a local restaurant has a pasta special.

On Thursday nights, a local restaurant has a pasta special. Ari likes the restaurant's pasta, and his willingness to pay for each serving is shown in the accompanying table. Quantity of pasta (Servings) Willingness to pay for pasta (per serving) 1 $10 2

The point of efficient consumption

Suppose the marginal utility per last dollar spent on hamburgers is greater than the marginal utility per last dollar spent on chocolate malts. Assuming a consumer purchases only hamburgers and malts, what should the consumer do if she wishes to increase her total utility from the consumption of these two goods? Why?

Mutual interdependence means that

Mutual interdependence means that a. all firms are price takers. b. each firm sets its own price based on its anticipated reaction by its competitors. c. all firms collaborate to establish one price. d. all firms are free to enter or leave the market.

governmental health care funding

Some economists have argued that if the government wishes to subsidize health care, it should instead provide predetermined sums of payments (based on the type of health care problems experienced) directly to patients, who then would be free to choose their health care providers. Give an economic rationale for this approach to

Which of the following is not true about the law of diminishing returns?

Which of the following is not true about the law of diminishing returns? a. It is a short run phenomenon. b. It refers to diminishing marginal product. c. It will have an impact on the firm's marginal cost. d. It divides Stage I and II of the production process. e. All of the above are true.

Command Process - Example

5. Which of the following is the best example of the "command" process? a. MCI-Worldcom buys Sprint. b. Striking auto workers force General Motors to shut down its factories. c. Banks raise their fees on late payments by credit card holders. d. The FCC requires local telephone companies to provide ac

Econ-Demand Schedule Problem

Suppose a firm has the following demand equation: Q = 1,000 - 3,000P + 10A, where Q = quantity demanded P = product price (in dollars) A = advertising expenditures (in dollars) Assume for the questions below that P = $3 and A = $2,000 Suppose the firm dropped the price to $2.50. Wo