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Microeconomics

TVC curve

I need a detailed answer illustrated with a graph.. Could you graph a typical TVC curve and explain how it reflects diminishing returns?

Microeconomics -- marginal social costs (pollution problem)

#2) The marginal social costs and abatement costs of a certain type of air pollution for a factory are given as: MSC = -1121 + 22.5Q MCA = 879 - 17.5Q Q = units of pollution per day, and MSC and MCA are measured in dollars. The Factory is located in a small town that is currently considering how to address the pollution

Multiplier

Calulate the multiplier for the following cases MPS=0.25 MPC=5/6 MPS=0.125 MPC=6/7 C=$200=0.85y

Estimating demand

I need to know how to calculate demand and price for two different demand functions that have the same cost function. P1 = 20 - .0125Q1 P2 = 40 - .025Q2 ATC = MC = 3.00. How do I calculate the price and quantity for each? How does ATC/MC factor into the price/quantity estimate? What is the economic profit for each?

Follow-up question regarding solving for price and quantity

For monopoly set the price when MC=MR For calculating MR first write the equation for total revenue (TR) TR=P*Q = (800-5Q)*Q --------(1) Differentiate (1) w.r.t. Q to get MR MR=dTR/dQ = 800 - 10Q----------(2) MC = 15Q Equate MC and MR, we get Q = 32 Put this in equation for P to calculate P, P=640 The above resp

Pricing question

Some tennis clubs charge an up-front fee to join and a per-hour charge for court time. Others do not charge a membership fee but charge a higher per-hour fee for court time. Consider clubs in two different locations. One is located in a suburban area where the residents tend to be of similar age, income, and occupation. Whic

Economic problem

Suppose there is a water project, in where $100,000,000 has been spent. Additional cost is needed is $200,000,000. When completed the project will yield total $150,000,000. There is an argument when the project should completed. Otherwise the first $100,000,000 will have been wasted. What comment and recommendation is needed fo

Marginal Revenue - Marginal Cost

If a firm finds out that its MR is greater than its MC, it should: a) increase production and sales B0 decrease production and sales c) encourage the entry of other firms into the market d) keep raising its selling price until MR =MC. E) change nothing because profits are maximized.

Marginal Revenue - Demand Curves

Marginal Revenue becomes negative for a firm faced with a downward-sloping demand curve when: a) the demand price becomes negative b) the demand elasticity drops from elastic to inelastic c) total revenue is maximized d) the loss on previous units is at is maximum e) both b and c

Production-possibility frontier

8. Which one of the following must be held constant in drawing up a production-possibility frontier? A) The total resources. B) The quantity of money. C) Money income. D) Prices. E) The allocation of resources among alternate uses.

Microeconomics: Risk Aversion

** Please see the attached file for fully formatted problem description ** --- Define Risk Aversion. Consider a risk-averse von Neumann-Morgenstern individual having wealth w who must decide whether to accept or decline a simple gamble offering a chance of winning or losing a small amount of wealth h with probabilities p an

Economic Proof

Consider the problems of maximizing u(x) subject to px = y and maximizing v(u(x)) subject to px = y, where v(u) is strictly increasing over the range of u. Prove that x* solves the first problem if and only if it also solves the second problem. If this proof is in the Mas-Collel text or Varian text, let me know and I can loo

Boundaries of firms.

23. How do you expect the boundaries of firms doing business in developing countries to change, as these countries continue to grow and prosper? [hint: how will the demand for specific assets change in these countries?]