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Microeconomics

different demand functions that have the same cost function

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

Economics for Water Projects

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

Need to solve the following problem

What is an externality? What is a public good? Can you please also give examples.

Why does producing at MC=MR maximize profit for a monopolistic competitor?

Why does producing at MC=MR maximize profit for a monopolistic competitor?

Finding Graph from Table Values

Need help with the following attachment please.

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

Perfectly competitive firms

In the long run, firms will exit a perfectly competitive industry if: a. excess profits exceed zero., b.excess profits are less than zero., c.total profit equals zero., d.excess profits equal zero. Please explain.

Decline Consumer Surplus Increase in Price

51. In the figure to the right, the decline in consumer surplus resulting from an increase in price from \$5 to \$10 is given by the area: A) FGH B) CEH C) FGDC D) CEGF E) DEG

Price Decline for Consumer Surplus

51. In the figure to the right, the decline in consumer surplus resulting from an increase in price from \$5 to \$10 is given by the area: A) FGH B) CEH C) FGDC D) CEGF E) DEG

Production Possibilities Frontier Zero Consumption Point

See attached file thank you 9. Which point on the production-possibility frontiers drawn above indicates no consumption goods being produced? (x axis capital goods, y axis consumption goods)

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.

Production Possibilities frontier

7. When moving along a production possibilities frontier, the opportunity cost to society of obtaining more of one of the two goods: A) is measured in dollar terms. B) usually decreases as more of the good is produced. C) is measured by the amount of the other good that must be given up. D) is measured by the additio

An indifference curve

Explain an indifference curve in everyday language. Graphically show and briefly explain how someone would determine their optimal consumption.