Reference no: EM13157756
1. Domestic market demand for some good is described by: P = 100 - Q. Domestic supply is described by P = 20 + 2Q. Illustrate demand and supply. Find the equilibrium for this closed market.
a. Suppose that the commodity in question is available on the world market at a constant price of 10. If trade is unrestricted, what is the new equilibrium? How much do domestic producers lose if free trade is allowed?
b. Suppose there is a quota of 50 units allowed in. Illustrate this situation in a diagram. Is there any deadweight loss? Explain.
c. How can a domestic firm profit from this situation? Relate your answer to the diagram.
2. Suppose market demand for undifferentiated retail services is described by P =100-Q.
The well-understood technology of retailing makes it possible for anyone to set up a firm that can produce subject to TC = 10q with fixed costs small enough to be negligible.
a. Find the equilibrium price and quantity in the market. How large are the profits of a typical firm in the industry?
b. Suppose that one firm - Wal-Co - can produce subject to TC = 1 + Q + 0.5Q2.
Wal-Co's marginal costs are therefore given by 1 + Q. Illustrate the market with
Wal-Co participating. Does anyone make any profits? If so, how much?
3. Suppose that a firm's total costs are given by TC = 100 + 10Q + Q2. Its marginal costs are therefore given by MC = 10 + 2Q.
a. Find an expression for average costs (AC) and average variable costs (AVC). Graph them together with marginal costs.
b. Find the firm's short run supply curve. Is the whole curve relevant to the long run?
c. Describe the firm's production technology. If it raises its output, do its costs per unit rise or fall?
|
Determine what sales price must be obtained at the end
: determine what sales price must be obtained at the end of that period in order for Amjay to break even, when the interest is 12 percent.
|
|
Gender issues in the working environment
: Every man and woman in the working environment should be equal and have equal pay. Do you think that there are still some gender issues in the working environment? How can the issue be resolved in the future?
|
|
Class of stock outstanding
: Assume common stock is the only class of stock outstanding in the B-Bar-B Corporation. Total stockholders' equity divided by the number of common stock shares outstanding is called:
|
|
Calculate the ph of a solution
: Calculate the pH of a solution when 0.200 moles of solid NaOH is added to 2.00 liter of 0.250 M HCl. Assume no change in volume.
|
|
Find an expression for average costs
: Find an expression for average costs (AC) and average variable costs (AVC). Graph them together with marginal costs and find the firm's short run supply curve. Is the whole curve relevant to the long run?
|
|
Show the impact of the expeted future in gasoline prices
: show the impact of the expeted future in gasoline prices on the current demand for gasoline by shifting the demand curve on a graph.
|
|
Multiple choice question
: 2. Which of the following is a step in locating offshore assets? a. determine if a subject traveled overseas b. locate the subject's travel agency c. identify the means employed to move cash offshore d. all of the above e. none of the above
|
|
Tuscaloosa co. is a u.s. firm
: Tuscaloosa Co. is a U.S. firm that assembles phones in Argentina and transports the final assembled products to the parent, where they are sold by the parent in the U.S.. The assembled products are invoiced in dollars. The Argentine subsidiary obtain..
|
|
Explain what is its melting point in degrees fahrenheit
: What is its melting point in degrees Fahrenheit? Water has a boiling point of 100°C. What is its boiling point in Kelvin?
|