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Assume that the market for Coca-cola in your area is perfectly competitive, with Demand P= 11-0.1Qd and supply P= 1+ 0.1Qs. Each firm that sells Coca-cola is indentical, with Total Cost TC= 1+0.5Q+2Q? Which gives Marginal Cost MC= 0.5+4Q. Currently the market is in equilibrium, and Coca-cola for $6 a unit and $50 units are sold.
a. graph the market
b. Identify the consumer and producer surplus on the graph.
c. Calculate the consumer surplus.
d. Graph the firm. Include the marginal revenue, marginal cost, and average total cost curves.
e. how much does each firm produce?
f. how much profit does each firm earn?
Consider following claim: price of gasoline has doubled and corresponding change in demand gravely hurt those who have long commutes to work. As a student of economics what do you find correct and what incorrect in this claim.
q.gdp taxes di c i g cig1250 200 800 300 200 1500 200 1000 300 200 1750 200 1200 300 200 2000 200 1400 300 200 2250 200
Elucidate how closely do real world conditions match the charateristics listed in the model. Do they compete using price. Is the good in question standardized.
Illustrate what is standard inconsistent cost. Illustrate what is the marginal cost.
Why do some business firms pursue a triple-bottom-line outcome while others focus only on profit maximization? Please, use a real company example to illustrate your points.
illustrate what is the new equilibrium price and quantity. Compute the equilibrium price and quantity in this market.
Zelda Manufacturing has are unique product that sells for $15 per unit and marginal cost is $7.50. Conclude Lerner index for Zelda Manufacturing. Does this index indicate market power.
Illustrate what will happen to the price of bonds also to money holding if the Fed changes the interest rate as a result of a decrease in the money supply.
Illustrate what other additional information do you need, and how would you proceed if you had that information.
How much is the uniform annual revenue in years 2 through 5 to achieve economic equivalence if the company decides to use MARR.
If you accept the offer calculate resulting profit. Also, calculate the optimal level of output (meter dug) and the level of labor usage.
q1. the demand for good x is estimated to be qxd 10 000 - 4px 5py 2m ax where px is the price of x py is the price
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