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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?

Plot Market Shares Against the Price

When you gather data note prices and number of cars at each station. Use the number of cars for all stations to calculate market share. Then plot market share against price. I cannot figure out how to plot this in excel. Could you give me a quick tutorial in excel and show me how this is done. I have the data. See below. T

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

Cost of Property

Estimate the cost of purchasing a lot, building a house and furnishing it using the following unit cost estimates: Size of property 100*150 feet House size 6 rooms, 50*46 feet with 75% of livable space Price of property in area: $2.50/square foot Average cost of construction $125/usable square foot Furniture $3,000 per ro

Cost of Living Index

The cost of a standard cooling system in 1990 was $25,000. If the equipment cost index at that time was 915.1, what will be the estimated cost for a similar system when the index is 1200?

Accounting profit

Would any of the following be considered accounting profit? Research and Development Selling and Administrative Expenses Non Recurring Expenses.

The Marginal Rate of Substitution

Please provide a detailed step by step solution for the following problem: Find the marginal rate of substitution for the following utility function: U=10+In X1+0.8In X2 Please Word document attached.

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

Currency Values and Tariffs

A country eliminates all tariffs. Would you expect that the value of its currency to rise or fall? Explain your answer.

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.