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Utility & Demand

Marginal Cost Analysis

Choose the best answer. 1. Marginal physical product can tell a producer a. at what point to stop adding inputs to the production process. b. how much profit will be made at each level of production. c. how much the last input added to the total amount of revenue. d. how much the last input added to the total amount

Economic Effect of Price Floors

Question 5 : Suppose the government sets an effective price floor in the market for oranges and agrees to buy all oranges that go unsold at that price. The oranges purchased by the government are discarded. Using graphs, illustrate the number of oranges purchased by the government, & illustrate the gains and losses to all rele

Present Value Tax Considerations

On the first day of summer, Buford learns that his favorite nearby golf course will sell him a special voucher that allows him to play golf for $10 in fees per game this year and every year for the next 7 years. The conditions are that Buford must commit now to paying for the same number of golf games each year, and must pay for

At the optimal consumption bundle

At the optimal consumption bundle a. the marginal utility of all goods consumed is equal b. the marginal utility per dollar spent is equal for all goods consumed c. the price of all goods consumed is equal d. none of the above are true Well consumption bundle, the goods and services that are consumed so it is D The ma

labor demand curve ..

Suppose the labor demand curve of the firm is W= 20 - 0.01 E where w is the hourly wage and E is the level of employment. The Union's utility function is U= WE What wage would a monopoly union demand? How many workers would be employed under the union contract?

EPA and Air Pollutants

Using the efficiency criterion, carefully analyze the problem faced by the EPA in identifying hazardous air pollutants prior to the 1990 Amendments.

Microeconomics Multiple Choice Questions

1) Suppose that recycling rubber for sneakers create an external benefits of $2.0 per ton of rubber . There are no external costs. The efficient amount of rubber will be recycled when the government create a : A) subsidy of more than $2.00 per ton of rubber(B) subsidy of $2.00 per ton of rubber(C) Tax of more than $2.00 per ton

You've been hired as an economic consultant...

You've been hired as an economic consultant to evaluate the nation's airport security systems (metal detectors and machines that allow security people to see what's inside carry-on luggage). Suppose these security systems add $5 to the typical airplane ticket and require 10 minutes of extra time for each passenger. List and expl

Pricing strategies including bundling

This is a conceptual problem. The number of customers and total costs are not known so it is difficult to visualized profits. Enclosed are pertinent data. Are my conclusions correct regarding how to set the prices? Is the demand graph set correctly?

Education, Taxes, Hicksian Demand

Please see the attachment. I require very specific explanations for each part. If necessary, assumptions may be made but please make these explicit and make sure they are reasonable so that I can follow what you did.

Wages, households, and childcare

Please see the attachment. I require very specific explanations for each part. If necessary, assumptions may be made but please make these explicit and make sure they are reasonable so that I can follow what you did. You can assume a utility function as long as its justified. 1. Assume the production of childcare for e

Important information about Economics of internet

Please read the following problem. I only need the answer for question G. 1. You have estimated demand for the Sand Hill Journal Online to be different for Stanford students and venture capitalists on Sand Hill Road. You are proud of having come up with the demand functions and go in to visit with your CEO. You present the

Pricing Mini Case

Times have been rough at ShtinkerToy, Inc. Yesterday was the first anniversary of its launch of its newest toy, "Thing-a-ma-bobber." It has been selling well, as predicted, but at a net loss, which was not predicted. As the newly hired vp of sales for ShtinkerToy, you were just emailed that you need to have a brief report (

Consumer behavior, income and substitution effects, Cost function

1. A student buys five new college textbooks during his first year at school at a cost of $80 each. Used books cost only $50 each. When the bookstore announces that there will be a 10% increase in the price of new books and a 5% increase in the prize of used books, the student's father offers him $40 extra. a. What happens to

Corrections Maximum Price for Gasoline

Problem 1. Part A: A firm with "market power" is operating two plants and selling its product in two markets. The demand and cost configurations it faces are: Demand: Costs: Market 1: P = 484 - 20Q1 Plant 1: TC1 = 961 - 10 Q1 + Q12 Market 2: P = 484 - 5Q2 Plant 2: TC2 = 324 - 10 Q2 +3Q22 O

Price and Quantity - DVD Players

What do you think will happen to the price and quantity of DVD players if a. The availability of good movies to play on DVD players increases? b. Personal income increases? c. The price of inputs used to produce DVD players decreases? d. Ticket prices at local movie theaters decline substantially?

Characterize law of demand

Please help with the following problem. Provide at least 300 words in the solution. Explain the law of demand. Why does a demand curve slope downwards? Distinguish between a change in demand and a change in quantity demanded.

Demand Turkey Expert Advice

Thanksgiving is approaching. It's a holiday in the US where lots of turkey dinners take place. Al's market is contemplating their turkey order for the holiday. Al feels that because of a recent rise in patriotism, that this may be a very high demand turkey year. He believes that there's a 75% chance he could sell 200 turkeys

Microeconomic Theory overview

Consider the problem of maximizing u = (x1x2)2 subject to p1x1 + p2x2 = y. Derive the Marshallian demand functions and the indirect utility function; and confirm that Roy's identity holds.