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If the cost function for John's Shoe Repair is C(q) = 100+10q-q^2+(1/3)q^3, what is the firm's marginal cost function? What is its profit maximizing condition if the market price is p? What is its supply curve?
Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2007, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per ..
According to the following economic indicators, estimate the outlook of this fictitious economy. Although I know what these indicators mean,
Generic Brands is expected to earn a profit of $1 million each year forever into the future. If the interest rate is 5%, and there are 20,000 shares of company stock outstanding, how much will investors be willing to pay for a single share of Gene..
Suppose the demand function for a firm's product is given by In Qdx=3-0.5 In Px-2.5 In Py In M 2 In A Where Px= $10, Py= $4, M= $20,000, A= $250 A. Determine the own price elasticity of demand, and state whether demand is elastic, inelastic, or unita..
All of its current sales are to private sector customers and each pays $12.00 per unit for the equipment. The sales price is equal to 150% of average variable costs. A government agency has offered to purchase 300,000 units at $10.00 each. If Comp..
The tensile strength of spot welds produced by a robot welder is normally distributed, with a mean of 10,000 psi and a standard deviation of 800 psi. For a simple random sample of n=4 welds,
Ahead of you is a wonderful weekend. You bought a ticket to see a professional football game. The ticket cost $50 a piece, plus you estimate a cost of $25 each for gas to the game and parking. Since the game is in the middle of the afternoon, you ..
suppose you take out a car loan of $10,000 with an interest rate of 12% compounded monthly. you will pay off the loan over 48 months with equal monthly payments. a) what is the monthly interest rate b) what is the amount of the equal monthly paymen..
A high-precision programmable router for shaping furniture components is purchased by Henderson for $190,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances.
Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even if it is riskier). If the yield on 1-year marketable CD's is 6% while the yield on 2-year marketable ..
Consider a firm that produces military equipment. It employs 2,000 workers and pays each of them a competitive wage of $40,000 per year; its total labor costs are therefore $80 million per year. The firm also has other, non-labor costs of $30 million..
The cost structure of a manufacturer of cable modems is described in the following table. The firm's fixed costs equal $10.00 per day. Output(cable modems per day Total cost of output ($ thousands) 0 10 25 60 50 95 75 150
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