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An energy supply firm has the following deman curves for both domestic(m) and commercial(c) consumers of its product: Qm=40-5Pm, Qc=60-10Pc. The total cost function for the firm (C) is described by the following equation: C(Q)=120+0.025Q^2, Where Q=Qm+Qc(a) Dertermine the profit maximizing level of output to be produced and sold in each submarket.(b) What price should the firm charge in each submarket?(c) Evaluate the price elasticity of deman in each submarket and briefly comment on their relevance in the determination of the relative pirces in both markets.
Utility function: U(x,y) = x^1/2 + y A) graph a typical indifference curve, choose a level of utility and draw various combinations B) write marginal utility of x and y C) give marginal rate of substitution
Predict gross benefits if admission is set at $1.00 and Dryville has marginal excess tax burden of 0.25. In answering this question, assume that the fees are used to reduce taxes that would otherwise have to be collected from the citizens of Dryvi..
At the end of the 8-year planning horizon, the mixer will have a salvage value of $5,000. If the mixer is replaced, a new mixer will require an initial investment of $375,000. At the end of the 8-year plaaning horixon, it will have a salvage value..
Simplify depreciation to be calculated as straight line over 30 years. It will be financed with a 30 year loan at 8% interest compounded annually with annual payments. It will be sold at the end of year 15 for $300,000, at whi..
as the exclusive carrier on a local airline route, a regional airline must determine the number of flights it will provide and the fare it will charge. Taking into account operating and fuel costs, airport changes, and so on, the estimated cost pe..
it also gives each economy's average annual growth rate over this period. for example, real GDP per persion in senegal was $1,776 in 1960 and actually declined to $1,571 by 2000. Senegal's average annual growth rate during this period was -0.31%
Solve the forecast model
)TLC Lawn Care, Inc. provides fertilizer and weed control services to residential customers. Its seasonal services package, regularly priced at $250, includes several chemical spray treatments. As part of an effort to expand its customer base, TLC..
The Australian government administers two programs that affect the market for cigarettes.
American Airlines produces round-trip transportation between Dallas and San Jose using three inputs: capital (planes), labor (pilots, flight attendants, and so on), and fuel. Suppose that American's production function has the following Cobb-Dougl..
State carefully the ceteris paribus assumption in this case. Do you think this simple regression of Y on X satisfies that assumption? Why or why not?
The XYZ Company produces whatchamacallits in a perfectly competitive industry. The market price is currently $8.50/unit. Freddie Freeloader, operations manager at XYZ's manufacturing facility in French Lick, Indiana, must decide how many whatcha..
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