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The demand function for a firm’s product is Q(P) = 50!P/10. The firm’s cost of production is
C(Q) = Q3!20Q2+125Q. The firm’s problem is to choose the value of Q$0 that maximizes its profit. You may occasionally find an irrational number and in those cases simplify your answer as much as possible.
For this part only, change the demand function by assuming that demand (at any given price) is half of what it was before. In this new situation, calculate the firm’s inverse demand function, profit-maximizing point, and maximized profit.
(l) For this part only, suppose that the problem is to maximize revenue instead of profit. Does this problem satisfy the global SOC? Find all points (if any) that satisfy the FOC. Calculate the revenue-maximizing price and quantity. (Justify your answer carefully.) Calculate the firm’s maximized revenue. How much profit does the firm sacrifice by choosing to maximize revenue instead of profit?
The inverse demand for a product is P(Q) = 100 − (1/2)Q. Production is associated with a marginal private cost, MCP(Q) = Q, and a constant marginal external cost, MCE = 25. What is the unregulated equilibrium? (Define in terms of price and quantity...
A bond is bought at par and market yields rise after purchase. If the bond is held to maturity, the rate of return at maturity will be _____ the yield at purchase.
That term would be most closely associated with the latest also better goods also services also latest also better ways of producing
Do you think that monetary policy is easier to make than fiscal policy? Why is one easier or harder than the other? What is the Goal of each of the policies? Are the goals in conflict or complements of each other?
1nbspbarriers to entry help maintain market power and earn positive economic profits.nbsp these factors apply to all
What rate of output maximizes profits? What is MR at the rate of output? What is price? If output is increased beyond that point, what is the relationship of MC to MR? How will this affect total profits?
Write-down your own, or an imaginary person’s balance sheet. It should include assets (textbooks, etc.) and liabilities (student loans of at least $100, Money you owe to a friend, etc.). Don't forget to include net worth. [No need to write a long bal..
Utilize the information from the completed table also the graphs to identify the three stages of production also explain why the industry's short run production has only one ‘rational' stage of production.
In 2008 the Federal Reserve took pretty extraordinary measures in an attempt to stabilize the economy. You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1 and that ..
Illustrate what would the peso-dollar exchange rate be if purchasing-power parity holds. Explain how can the organization use technology to change this balance for an advantage.
Absolute and comparative advantage: Explain how these concepts describe the benefits and costs of international trade.
Mary consumes two goods, Diet Coke (X) and Cheeseburgers (Y). Mary’s Utility function is represented by U(X,Y) = 3XY2 . Her marginal utility function for X is MUx = 3Y2 . Her marginal utility function for MUy = 6XY.Write an expression for Mary’s budg..
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