1. Indicate whether each of the following statements is true or false and explain why. a. A competitive firm that is incurring a loss should immediately cease operations. b. A pure monopoly does not have to worry about suffering loses because it has the power to set its prices at any level it desires. c. In the long run, firm
The consequences of decriminalizing illegal drugs have long been debated. Some claim that legalization will lower the price of these drugs and reduce related crime. Others claim that more people will use these drugs. Suppose that some of these drugs are legalized so that anyone may sell and use them. Now consider the two clai
Demand: Z=C+I+G Consumption: C=Co+C1(Y-T) Investment: I=aY-bi 1) Derive the IS-curve Now assume that the interest rate is determined by: M/P=d1Y-d2i, where P is the price level, Y is real GDP and M/P is the real money stock. 2) Derive the LM curve Suppose the value of the parameters of the model are: c1=0.5, a=0.3,b
If the fixed cost of producing 100 is $130, then a. fixed cost of producing 0 is $0, b. fixed cost of producing 0 is less than $130 c. fixed cost of producing 200 is $260 d. fixed cost of producing 200 is $130 e. cannot determine.
How do you figure marginal revenue for units of different production levels? What is the formula? ex. 1 unit = $1 2 units = $2 3 units = $4 total fixed cost is $1 How do you set up to find marginal revenue for each unit set?
Please help with your knowledge on the problem. My goal is to learn the material, but if even if you can't help with the final answer. So all input is welcome. Thank you! Let P = 53-Q be a consumer's long-run (inverse) demand curve for gasoline, and P= 103-2Q be the consumer's short-run (inverse) demand curve, where P is th
Please can someone give some ideas, even if they don't know the final solution? A firm receives a price of 120 for its output. Its total cost function is C=.02Q^3 +.4Q^2 - 5Q - 15. a) Assuming the utility operates to maximize profits, what is this firm's profit maximizing output level? I know we have to use the qu
I am having trouble finding the cost function since it is needed to calculate profit( revenue my cost). Also can you help with the others, please. The short-run supply curve for an orange producer in Florida is P=.001Q, where Q is bushels of oranges produced in a year. The market price of a bushel of oranges is $20 per bushe
Market Researchers at XYZ Corp. estimate that the demand function for the firm's product is Q=50P ^-1.5 I ^0.5 Q= Quantity Demanded P= Product's Price I= Per Capita Disposable Income Marginal Cost of the firm's product is estimated to be $10. Population is constant. XYZ's price for the product is $20.
Please answer A, B & C. Dyna-Rubber, Inc. man manufactures a high-performance tire called Sport 70. Fixed development cost for the current year is $600,000. Marginal costs for manufacturing and distribution are $63 per tire. Based on recent sales experience, the estimated demand curve and marginal revenue relations for Sports 7
Planning Inventories The national tire company (NTC) manufactures only one type of tire and wants to plan its production and inventory levels for the next five months. Company policy is to schedule all of its overtime production during one month. The following table provides the relevant data for each month, where the inven
1. Groovy Tuesday, a clothing manufacturer, has found that their costs can be approximated by the equation: C = 500 + 2Q2. The consulting firm they hired to estimate their current demand determined that demand is characterized by: Q = 450 - 2P. What level of production would maximize their profit? 2. Musical Melodies, a s
You are given the following data and asked to determine the beta coefficient and the alpha coefficient for IBM and General Electric stock. If you assume that past history is indicative of future expectations and covariances, were IBM and GE good buys at the end of this data set (I.e. in January 2007)? Why or why not? The one
See attached file for full problem description. 9. The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship: Q = 400 - .5P where P is price. Total costs (including a "normal" return to the owners) of producing Q units
5. Assume that two power plants, Firm 1 and Firm 2 release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard. To meet the standard, 30 units of SO2 must be abated in total. The two firms face the following abatement costs: MAC1=16+0.5A1 MAC2=10+2.5A2 where costs are measured in thousands
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
Assume that the graph in the attached file illustrates the marginal, average variable and average total cost curves of a typical coffee grower and that the wholesale market for coffee beans is a perfectly competitive market. A) As output expands, at what level of output does this grower first start to experience diminishing
The external marginal cost of air pollution is MCexternal=5Q and internal marginal cost is MCinternal=10Q. Also assume the inverse demand for product Q is represented by P=90-Q. 1. what is socially efficient level of output 2. how much output would competitive industry produce 3. how much output would monopoly produce 4.
Need Price for every cartelization level, the market output, market profits, cartel output and profits, and need noncartel firm(s) output and profit. This if for 5 firms. Starting as one firm making a cartel all the way through the 5th firm joining the cartel. GIVEN: Q=100-p P=10+qi for all i=1......
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?
Illustrate and explain how the profit maximizing level of output is determined when markets are characterized by imperfect competition. Describe how markets in perfect competition differ from markets that are imperfectly competitive. What role does the firm have in determining market price under each condition?
Q: True, False, or Uncertain. If the marginal costs of precaution do not rise with the level of precaution taken, the efficient level of precaution (X*) will be less than if the marginal costs of precaution increase with the level of precaution taken? What if accidents costs decrease with precaution? All else held equal, how doe
Let w be the marginal cost of precaution, x be the level of precaution, p(x) be the probability of an accident, and A be the accident losses. *Assume unilateral precaution. True, False, or Uncertain. If the marginal cost of precaution do not rise with the level of precaution taken, the efficient level of precaution (X*) will
A. ABC Technologies, Inc., enjoys an exclusive patent on a process to atomize gasoline with platinum in combustion engines, producing substantial gains in miles per gallon. Total and marginal revenue relations for the process are: TR = $250Q - $0.001Q2 MR = MTR/MQ = $250 - $0.002Q Marginal costs for the process are stabl
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
I need help to answer this question what should I consider when answering it? The question was Suppose that a family's money income remains constant at $40,000 and that the price level increases 10 percent per year. How many tears will it take for the family's real income to be cut in half?
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
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
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