Survey of households in a small town

Assignment Help Business Economics
Reference no: EM135642

Q. A survey of households in a small town showed that in 850 of 1,200 sampled households, at least one member attended a town meeting during the year. Using the 99% level of confidence, what is the confidence interval for the proportion of households represented at a town meeting?

1. My Big Banana (MBB) has a monopoly in Middletown on large banana splits. The demand for this delicacy is given by Q = 80 - P. MBB's costs are given by TC = 40 + 2Q + 2Q2. What is the maximum monopoly profit?

2. A firm under monopolistic competition faces the demand curve: P = 500 - 12.5Q. The firm's marginal cost is MC = 200 + 5Q.

a. Find the firm's profit-maximizing output and price.

b. Assuming that the firm is at its long-run equilibrium position, estimate total revenue, total cost, and total profit.

3. A monopolist faces the demand curve: P = 8,400 - 3Q, and has long-run average cost LAC = 900 - 3Q + Q2.

a. Derive equations for revenue, marginal revenue, total cost, and marginal cost.

b. Determine the monopolist's profit-maximizing output, price, and profit.

4. Industry demand for a good is given by: P = 60 - .5Q. The industry's long-run cost is $10 per unit: LAC = LMC = $10.

a. A monopolist controls the industry. Find its output and price.

b. Instead, suppose that the same industry is perfectly competitive. Find the long-run equilibrium price and output. Comment on the differences between the monopoly and competitive results.

5. A 5-member commodity cartel faces the demand curve: P = 60 - .4Q. Each member can produce output at (constant) LAC = LMC = $20 per unit.

a. Describe how the cartel should operate to maximize its total group profit.

b. Under the group profit-maximizing cartel agreement in part a, one member produces 10 units of output. It is tempted to secretly increase its output to 20 units. Assess this strategy and comment on cartel stability.

Reference no: EM135642

Questions Cloud

Sustainable development is always considered : Steps that a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept
Evaluate amortization for 2013 : Evaluate amortization for 2013 and prepare the journal entry to record the revaluation of the patent and evaluate amortization for 2014
Business decision is profitable : If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable.
Evaluate the amount of goodwill : Evaluate the amount of goodwill that resulted from the Harman acquisition. Evaluate the amount of goodwill impairment loss that Pesky should recognize at the end of 2013.
Survey of households in a small town : What is the confidence interval for the proportion of households represented at a town meeting. Survey of households in a small town showed that in 850 of 1,200 sampled households.
Price elasticity of demand for royal crown cola : The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison
What principle of law was the esposito case used : What is the most jealously protected kind of speech, according to the court in this case? What court decided the case in the assignment? Explain - state the facts of this case, using the information found in the case in LexisNexis.
Factors that might explain acme hospital : Suppose that these cost figures accurately refl ect the economic costs of providing inpatient services at these two hospitals and that the two hospitals face the same average total cost curve.
Evaluate minimum net employment income : Evaluate Mr. Segovias minimum net employment income for the 2009 taxation year. Ignore  PST and GST considerations.

Reviews

Write a Review

 

Business Economics Questions & Answers

  The benefit of cutting down a forest

The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Demand for healthcare services

Suppose that the demand for healthcare services is perfectly inelastic while the supply curve is upward sloping. Analyze the impact.

  Point of tangency that characterizes

Suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs at Q1 units of output.

  Define culture in your response

Explain the role culture may play in influencing entrepreneurship both at the individual and social level. Define culture in your response.

  Calculate price, quantity and social surplus

Calculate price, quantity and social surplus for the initial state and each policy.

  Opportunity cost of josephine''s trip to the wedding

What is the opportunity cost of Josephine's trip to the wedding

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  What occurs when a new technology makes another one obsolete

Explain what occurs when a new technology makes another one obsolete in terms of economic profit.

  Define mercantilism

Define Mercantilism, Pick a country and talk about the products they import and export with the U.S.A. Also talk about the composition of trade with relation of abundance of the two countries

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Profits associated with polluting for friedman

Profits associated with polluting for Friedman Inc. are π = 40Q - 2Q2, where Q = pollution emitted (in tons), and profits are measured in dollars.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd