Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose that the eye doctor offers senior residents a discounted price for an eye exam. The demand function for senior residents is Qs = 50 - Ps, and the demand function for the general public is Qg = 60 - Pg. The marginal cost for an eye exam is constantly $30.
(a) Given that the marginal revenue curve for senior residents is Ps = 50 - 2Qs, and the marginal revenue curve for the general public is Pg = 60 - 2Qg, what prices will the eye doctor charge for senior residents and the general public to maximize profits?
(b) Calculate the price elasticity of demand for each group at current prices (Hint: ?Qs/?Ps = -1 and ?Qg/?Pg = -1).
(c) Compare the price and price elasticity of demand for each group in part (a) and (b), can you conclude the optimal rule for charging prices to each group when practicing third-degree price discrimination?
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 6.00 percent. This firm is earning $15.00 on every $150.00 invested by its founders. What is its percentage rate of return.
Chemco operates two plants A and B, which produce the same product. The capacity of plant A is $60,000 gallons while that of B is $80,000 gallons. The annual fixed cost of plant A is $2600000 per year and the variable cost is $32 per gallon.
The following are the inverse demand curve and MR curves for a monopolistically competitive firm. P = 1000 - 2Q MR = 1000 - 4Q Where P is the price of the product and Q is the level of production. For the 200th unit of Q, MR is equal to.
If supply is given by Qs = 1000 and the government imposes a tax of 50 on iPhones that must be paid by sellers then Producers will bear the full economic burden of the tax but how come there is no deadweight loss
Project First Cost Annual Benefit A $15,000 $2,800 B $20,000 $4,200 C $10,000 $2,400 D $30,000 $6,200 ..
What is wrong with this specification? Why is least squares unable to estimate the parameters in this model uniquely? What happens when you try to estimate this model using STATA? Verify that the coefficients on education and experience variables f..
An auto dealership estimates that its demand curve has an elasticity of 2.78. If it wishes to increase sales by 12%, by how much should it decrease price What will happen to revenue (rise or fall) If instead it raises price by 20%, what is the per..
All costs are given in thousands of dollars and negligible salvage values are assumed at the end of a 50-year life. Using a social interest rate of 8% in the Benefit/Cost analysis, determine which project(s) should be selected if the alternatives ..
indicate that the short run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum /used in producing tires) causes the market prices of tires to rise from $50 to $60
one in Toronto, Ontario, and the other in Halifax, Nova Scotia. Assume that both jobs were equally interesting to Sam and that he was indifferent between relocating to Toronto or staying in Halifax. Both positions offered a salary of $52,000.
Does the spending of a private university get factored into GDP What about the spending of a public university If GDP = C + I + G + NX, which variable (if any) would private/public university spending be a part of
For each of the expected inflation rates of 0, 2, 4, 6, and 8 percent, calculate the nominal interest rate and the after-tax expected real interest rate if the tax rate is 30 percent. Suppose that the Fisher hypothesis holds for an economy.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd