Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Perfect Competition
The following table represents the hourly output and cost structure for a local pizza shop. The market it perfectly competitive, and the market price of a pizza in the area is $10. Total costs include all explicit and implicit costs.
Output
Total Costs
0
$5.00
1
$9.00
2
$11.00
3
$12.00
4
$14.00
5
$18.00
6
$24.00
7
$32.00
8
$42.00
9
$54.00
10
$68.00
a) Calculate the total revenue and total economic profit at each level of output.
b) Calculate the pizza shop's marginal costs and marginal revenue level of output. What is the profit maximizing rate of output for the pizza shop?
c) Draw a market supply and demand diagram for pizza along side a corresponding representative firm graph for the pizza shop. With respect to the representative firm graph, label the areas that represent total revenue, total costs, and profit. (For simplicity, only draw the average total cost curve; you need not draw the average variable cost curve.)
d) Now in another set of side by side graphs, show the adjustment that takes place in the long run in both the market graph and the corresponding graph for the representative firm. (Explain your answer.)
Explain how a change in investment can have big impact on GDp causing nationwide slump. Recall that investment is "small' relative to the whole economy.
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
Questions on Long-Run Labor Demand and Factor Substitutability, Own-price elasticity, Cross-price elasticity
Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Identify trends or other patterns in inflation within the an economy of your choice over the last five years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source.
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
Dr Leona Williams a well know Plastic Surgeon, has reputation for being one of best surgeons for reconstructive nose surgery. Dr Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to b..
Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?
Would you rather earn a 4 % nomical or 4% real interest rate? Illustrate by describing the difference between nominal and real variables.
Question based on Laffer Curve : Tax Rate and Tax Revenue, Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?
Determine the profit-maximizing prices both firms will charge. In addition, calculate the price-cost margin for each firm and indicate which has more pricing power and why.
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd