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Your firm’s research department has estimated your total revenues to be R(Q) = 600Q – 4Q2 and your total costs to be 60 + 2Q2. (Note that MB = 600 - 8Q and MC = 4Q).
a. What level of Q maximized net benefits?
b. What is marginal benefit at this level of Q?
c. What is marginal cost at this level of Q?
d. If the firm produces at the point where net benefits are maximized, what are the expected total revenues and totals costs?
All the costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold. What price should you charge for movie tickets?
Suppose it takes a total of 100 hours to produce a car (mathematically speaking, this means one hour of work “produces 0.01 cars”). If the average wage in car making is $50 per hour, and each car needs $1,000 worth of inputs other than labor, C1: Wha..
Producer surplus, which equals profits, plus the net effects of any taxes, subsidies, or side-payments agreed to under the terms of a contract with the consumers; and Net damages to the consumer, likewise net of any payments made to or received from ..
Write main() functions to test and debug each function, using gets() and puts() for string input and output as follows: To demonstrate strlen(), input your first name using gets() and use printf to print the string followed by the number of character..
Kramer Smith owns a dry-cleaning service also is thinking about changing his advertising expenditures for the year.
A new computer has a 4 year life span with an initial cost of $1,200 and a $200 salvage value. According to the straight-line depreciation method, what would the annual depreciation on the computer be? You buy a used Tesla Model S for $30,000. It is ..
What is the effective rate of protection for the automobile industry in country A, if there is a tariff of 25 percent on imported automobiles and a tariff of 50 percent on imported inputs used in this industry.
Many goods and services are illegally sold or legally sold but not reported to the government. How would increased efforts to count those goods and services affect our calculation of GDP?
Suppose a large number of new immigrants enter the labor market. Assume this increase in the supply of labor provides a drag on wage increases: wages rise by less than the prevailing rate of inflation over the next year. Use the short-run model to ex..
During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important.
If your analysis period (study period) is just three years, what should be the salvage value of project A2 at the end of year 3 to make the two alternatives economically indifferent?
In the text, we suggested that for well-off individuals with uniform taxation, preferences for education were not single-peaked. Why might preferences for local parks and urban public transportation systems (e.g., buses and subways) also not be singl..
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