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AMS recently instituted an in-house recycling program. The benefits of this program include not only the benefits to the environment of recycling but also the goodwill generated by AMS’s leadership in this area. The costs of recycling include all of the energy, labor, and space required to do the recycling. Suppose these benefits and costs are given by: B(Q) = 100Q – 4Q2 and C(Q) = 5Q. (Note that MB = 100 – 8Q and MC = 5).
a. What level of Q maximizes net benefits (assume partial units are possible)?
b. What is marginal benefit at this level of Q?
c. What is marginal cost at this level of Q?
d. What is the maximum level of net benefits?
If the quantity of output demanded at every price level increases by $1 trillion, Illustrate what happens to equilibrium output also prices.
The PC World article states that Intel needs to have their new class of fabrication plants (Fabs) produce at a specified volume. Show why this is the case using the concept of cost curves to describe firm behavior such as that found on page 206 of th..
q. you sell a commodity in a market that resembles perfect competition and your cost function is cq 2q 3q2.
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4.
How much do you expect to get paid for a year in the second investment to be indifferent between two investment choices? (The two investments have the same Expected Profit) What is the Risk Premium in the second choices?
Show on a supply-and-demand diagram and explain in words what will happen to the Canadian exchange rate compared to the foreign exchange rate when the world demand for lumber, wheat, and paper increases.
I have recently been involved in a debate stemming from figures mentioned in this blog post (the blogger was advocated by Occupy London's facebook page and verifying the level of "over-sensationalism" portrayed in the post would make or break my rela..
Consider the restaurant purchase you made in Topic 1. What was your decision-making behavior? Was it a routine, complex, or limited problem-solving situation? Identify which behavior and explain how the level of involvement played into your decision.
Competitive market equilibrium is determined by:
What are the issues related to exchange rates - their impact on national economies when they change, their different equilibrium concepts (PPP and IP), how governments manage them (fixed or flexible or in-between)?
What happens to Bond prices, quantities and interest rates if (Make sure to include the supply and demand graph for bonds for each question :
A business owner used a revenue function and a cost function to analyze his monthly sales. One month he found that with a sales volume of 600 items he had revenues of $10,200. Another month he had total costs of $4,700 on a sales volume of 400 items...
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