Reference no: EM131298606
1. The market for rental cars has two segments, business travelers and leisure travelers. The demand from business travelers is QB = 35 - 0.25P, and the demand from leisure travelers isQL = 120 - 1.5P. If the price of a rental car is $60, what is the consumer surplus in each market segment?
2. For demand Q = 1 - P, compute the consumer surplus function as a function of P.
3. A price-taking firm's supply curve is Qs = 10P. What is producer surplus for the firm if P = 20? By how much does producer surplus change if price increases to 21?
4. A market consists of 100 identical firms, each with total cost function C(Q) = 2Q^2. The market price is 200. What is an individual firm's producer surplus and what is producer surplus for the market?
5. Say demand is Qd = 1 - P and supply is Qs = P.(a) Find the equilibrium price and quantity if the market is unregulated.(b) Now say there is a price floor equal to .75. Now what is the quantity exchanged? What is the dead-weight loss of the price floor?(c) Now say there is a price ceiling equal to .25. Now what is the quantity exchanged? What is the dead-weight loss of the price ceiling?
6. The Screen Actors Guild, a union of actors, has some ability to impose minimum prices (a price floor) for work on regular Hollywood movies. If demand is Qd = 1 - P and supply is Qs = P,what price should the Screen Actors Guild set in order to maximize the total earnings of actors?
7. The market for fubbles is perfectly competitive. Supply and demand are neither perfectly elastic nor perfectly inelastic. The government imposes a price ceiling in this market, and it isbinding (the price ceiling is less than the market-clearing price). What happens to the quantity exchanged, consumer surplus, producer surplus, and total surplus as a result of the price ceiling?Just give the directions of the changes. If the direction of any of these changes is indeterminate,explain what determines the direction of the change.
Show the effect of this decision on the market equilibrium
: "As more people buy fuel-efficient hybrid cars, the demand for gasoline will decrease and the price of gasoline will fall. The fall in the price of gasoline will decrease the supply of gasoline." Is this statement true? Explain.
|
Develop an understanding of the supply chain
: You will develop an understanding of the supply chain. You will provide your assessment of a supply chain in the form of an evaluation. This assignment is the second of the two LASA assignments you will complete in this course.
|
Liquidity trap and insensitive investment function
: The Keynesian Transmission mechanism will eliminate a recessionary gap if there are not Liquidity Trap or Insensitive Investment function. Explain:
|
What is the component cost of capital for the company
: Your probationary period at the Cosmo K Manufacturing Group continues. Your supervisor, Gerry, assigns you a project each week to test your competence in finance. What is the component cost of capital for the company? Calculate using the CAPM
|
Business travelers and leisure travelers
: The market for rental cars has two segments, business travelers and leisure travelers. The demand from business travelers is QB = 35 - 0.25P, and the demand from leisure travelers isQL = 120 - 1.5P. If the price of a rental car is $60, what is t..
|
Analyze the internal and external environment of the company
: Analyze the internal and external environment of the company. Develop and compare alternative solutions to the problems. Consider the advantages and disadvantages of various possible solutions.
|
Does the simple quantity theory of money predict
: What are the assumptions and predictions of the Simple Quantity Theory of Money? Does the Simple Quantity Theory of Money predict well?
|
Write the given paper about computer hacking
: Write the given paper about computer hacking.- Ms. X is a model employee, who has been working hard at her job, receiving consistently positive evaluations and exceeding expectations.
|
Discuss the impact of each states population
: Discuss the impact of each state's population increase on the four (4) highest discretionary spending accounts. Note: Please refer back to Week 3 and review the State of Michigan and your state's budget.
|