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The market demand for product X is given by Qd=8-1/3p and the market supply for good X is given by Qs=p-8, where P=price per unit.
a) Draw a supply and demand graph with these curves. What are the equilibrium price and the equilibrium quantity?
b) A per unit excise tax is imposed on product X, and the market supply with the tax is now given Qs=p-12. add this supply curve to your graph and identify the new equilibrium price and equilbrium quantity. What is the value of the per unit tax? How much of this per unit tax will be paid by consumers and how much will be paid by the producer? What is the value of the tax revenue?
the demand for its product comes from two types of customers, I and II. Each type I customer (there are 25 of them) has a demand curve given by Q=12-P, while each type II customer (there are 30 of them) has a demand curve given by Q=9-P.
Consider a Cobb-Douglas production function with three inputs. K is capital, L is labor, and H is human capital. The production function is Y= K^1/3 L^1/3 H^1/3 Derive an expression for the marginal product of labor. How does an increase in the am..
Calculate the Net Present Value and Rate of Return for the Project: Initial Cost: $100,000.00 Expected annual benefits: $20,000 Expected economic life: 10 Expected salvage: $10,000 Minimum Attractive Rate of Return: 12%
Frisbees are produced according to the production function q = 2K+L where q =output of frisbees per hour, K =capital input per hour, L =labor input per hour. a) If K = 10, how much L is needed to produce 100 frisbees per hour
I have a time series set of data of workers in motor vehicle industry from 1972-2001 as well as average weekly hours of workers in motor vehicle industry
What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $3,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of 6% per year over the previous years
Suppose you own a restaurant that serves only dinners. You are trying to decide whether or not or rent out your dinning room and kitchen during mornings to another firm, the Breakfast Club Inc., that will serve only breakfast.
Find the yield to maturity of the following securities: A. a security paying $ 1000 in one year, for which you pay $926 today B. a security paying $ 80 0ne year from now and $ 1080 two years from now, for which you pay $1,050 today
The difficulty of putting away money for their college educations precludes you from saving on a continuous basis for both. After reviewing your financial condition and projections, you think that the best you can do is to put away $2,500/year for..
competitive brand of cornfl akes, in dollars per 10- ounce box P M = price of milk, in dollars per quart A = advertising expenditures of CFC cornfl akes, in hundreds of thousands of dollars per year This year, P X = $ 2, I = $ 4, P Y = $ 2.50, P M..
You are a manager T Glass, Inc.- a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results form the study are summarized in the table below, and are based on 5 uni..
An upstart phone company has only two potential large customers, Firm A and Firm B. Firm As monthly demand for phone calls is Q1 = 2; 800 - 200p and Firm 2s is Q2 = 5; 000 - 100p. The marginal cost of providing a phone call is 6 cents.
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