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Price Levels

Short Run Economics

At a product price of $56, will this firm produce in the short run? Why or why not? If it is preferable to produce, what will be the profit-maximizing or loss minimizing output? Explain. What economic profit or loss will the firm realize per unit of output? Total Average Average Average


A firm annually sells 7,890 units. The cost of placing an order is $100 and the carrying costs are $2 a unit. What is the EOQ, the duration of the EOQ, and how many orders are placed annually? If the safety stock is 100 units, what are the maximum and average levels of inventory?

unconstrained profit-maximizing level of price and output

Specific Motors Corporation is one of the Big Three auto manufacturers in Transylvania. Specific's share of the domestic auto market is 55 percent. The next two closest competitors control 25 and 15 percent of the market, respectively, and the rest may be accounted for by two small, specialized firms. Specific has been under pre


Chapter 11 Problem 4 The Madison Corporation, a monopolist, receives a report from a consulting firm concluding that the demand function for its product is: Q = 78 - 1.1P + 2.3Y = 0.9A Where Q is the number of units sold, P is the price of its product (in dollars), Y is per capita income (in thousand

Gross Domestic Product in Purintania

The question used this table that shows the value of GDP in the nation of Purintania. The figures shown are in millions of 1980 dollars and current dollars. I am not sure how to fill in the blanks. Year GDP (Millions) GDP (millions of current dollars) Current Price Level

Velocity of money

What basic assumption about the velocity of money transforms the equation of exchange into the quantity theory of money? Also: According to the quantity theory, what will happen to nominal income if the money supply increases by 5 percent and velocity does not change? What will happen to nominal income if, instead, t

Asses the demand for money curve

Which of the following, other things constant, will shift the demand for money curve to the right? a. an increase in the interest rate b. a decrease in the interest rate c. an increase in real GDP d. a decrease in real GDP e. a decrease in the price level

Total Revenues and Net Benefits

Your firms research department has estimated your totoal revenues to be R(Q)=3,000-8Q^2 and your total costs to be C(Q)=100+2Q^2 a. What level of Q maximizes the net benefits? b. What is marginal benefits at this level of Q? c. What is marginal cost at this level of Q? d. What is the maximum level of net benefits? e. W

MPC (Marginal Propensity to Consume)

(See attached file for full problem description with diagram) --- 11. (MPC and MPS) If consumption increases by $12 billion when real disposable income increases by $15 billion, what is the value of the MPC? What is the relationship between the MPC and the MPS? If the MPC rises, what must happen to the MPS? How is the MPC r

Important information about profit maximizing price

A firm is considering building a bridge. The cost to build the bridge is $2 million with no maintenance costs. The following table shows demand for bridge: Price per crossing # of crossings $8 0 7 100 6 200 5 300 4 400 3 500 2 600 1 700 0 800 a. What is the profit maximizing price? b. What is the efficient

Economics Multiple choice

Please provide reason for answer. == A perfectly competitive market firm realizes an average of $11.00 and an average total cost of $10.00. Its marginal cost curve crosses the marginal revenue curve at an output level of 100 units. The current profit is $100.00. What is likely to occur in this market? (A) Price will go dow

Value Added Problem

"What value added means is not a higher price for certain goods. Value added means adding value to a raw product at its present stage of production and possibly taking that product to the next stage of production. It is basically the difference between the income received from the sale of the various products or services of a bu

Profit, output level price, monopolist profit & deadweight loss

A monopolist faces a market demand curve given by Demand: Q = 70 - P such that the marginal revenue curve is MR = 70 - 2Q The monopolist faces the following cost structure: C = .25Q^2 - 5Q + 300 such that the marginal cost curve is MC = .5Q - 5 What output level will the monopolist choose in order to maximize p

Demand Curve and Total Cost Curve - Find Profit Maximizing ...

Please study these, you will see them again. 1. Question 1 - 4 using the information presented in question 1. A monopoly faces the following demand curve and total cost curve: Q = 2400 -100P TC = 150,000 + 6Q. Find the profit maximizing level of price a. P = $15 b. P = $16 c. P = $17 d. P = 19 2. Fin

A.What is the profit maximizing output for this company? b.What is the profit (loss) this firm will make at the profit maximizing level of output? c.How many firms will compete in this market at the profit maximizing price and quantity? d.In the long run, what will be the profit-maximizing price and quantity in this market? What is the profit maximizing quantity in the long run and what will the level of economic profit be for each of these N identical firms?

1. A profit-maximizing firm operating in a perfectly competitive market can sell products for $100 per unit. The firm has a cost function represented by: C(Q) = 1000- 160Q + 10QSqr(10 q squared) . The market demand function for this product is Qd = 500 - 3P. a.What is the profit maximizing output for this company? b.Wh

Calculating output, price, total revenue and total profit.

P = $130 - $0.000125Q MR - $130 - 0.00025 Fixed development cost = $600,000 Marginal costs are $63 per unit. Calculate output, price, total revenue and total profit at the revenue maximizing activity level and then at the profit maximizing level (present each with relevant diagrams).

Problem solving and graphing

Complete the following table, assuming that each unit of labor below costs $75 per day. L Q TFC TVC STC MC 0 0 $300 $ $ $ 1 5 75 15 2 11 150 450 12.5 3 15 525 4 18

Tables and problem solving

PLEASE REPLY IN TABLE FORMAT FOR THE FIRST SECTION AND EXPLAIN A,B,C,& D. Complete the following table, where L is units of labor, Q is units of output and MP is the marginal product of labor. L Q MP TVC STC MC ATC 0 0 $0 $12 1 6 3 15 2 15 6 3 2