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Oak entertainment is the only movie theater in a small town. The firm can screen movies at a constant average and marginal cost of AC = MC = 10. The firm faces a demand curve given by: Q = 85-0.5P.
a) Justify the assertion that MR = 170-4Q
b) Calculate the firms profit maximizing price and output combinations. What are the firm’s profits?
c) Suppose the firm decided to charge the (maximum) willingness to pay for each movie ticket (perfect price discrimination)? How many tickets would it sell now, and how much profit would it make?
You are planning to save for retirement over the next 35 years. To do this, you will invest $840 per month in a stock account and $440 per month in a bond account. The return of the stock account is expected to be 10.4 percent, and the bond account w..
How events would leave the equilibrium price of textbooks at the same level observed before the supply shift.
From your personal experience, discuss a situation you have faced that would require one of the six elements of moral judgment. Identify the element of moral judgment you chose and justify your response.
If the Federal Reserve lowers interest rates in the United States, what do we expect to happen to US exports?
According to national income accounts, investment always equals savings in a closed economy. only in equlibrium would savings be equal to investment. hence, we are always in equlibrium. true or false.
what happened to real output? by how much would the price index have had to rise for real income to remain constant?
The problem is that even though you have assigned values of a,b,c, SN thinks that f is also a function of t, for which you have not assigned a value.
your first assignment as an engineering technology graduate from the university of houston downtown is to recommend to
The monopolist’s marginal revenue is different from the one facing a firm in perfect competition because: (a) The price elasticity he faces is less than unity; (b) The price elasticity he faces is equal to unity; (c) The price elasticity he faces is ..
Calculate the deadweight loss (DWL) from the price ceiling. Find a price floor that will result in the same magnitude of DWL. [Note: P = price per unit; Qd = hundreds of units demanded; Qs = hundreds of units supplied]
q1. what would be the production possibility frontiers for brazil and the united states? without trade the united
Calculate the APP, MPP and elasticity of production at different production levels and how many stages of production does this function represent? Mention them.
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