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
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
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
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?
Need help with the following attachment please.
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 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
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.
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
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
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)
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.
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
Explain an indifference curve in everyday language. Graphically show and briefly explain how someone would determine their optimal consumption.
Please see attachment.
** 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
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
11. Coca-Cola and Pepsi Co are the leading competitors in the market for cola products. In 1960 Coca Cola introduced Sprite, which today is the worldwide leader in the lemon-lime soft drink market and ranks 4th among all soft drinks worldwide. Prior to 1999, PepsiCo did not have a product that competed directly against Sprite
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?]