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!
A water supplier faces demand characterized by inverse demand function p = 100 − 2q. The supplier has somewhat unusual cost structure that results in a marginal cost function of the form MC(q) = 44 − (3/5)(q).
(a) Show how you find the economically efficient price and quantity.
(b) What are the net returns (i.e., profits) that the water supplier “enjoys” if they price at the economically efficient price?
(c) Suppose that the supplier can now employ simple two-tier pricing: one price for the first ¯q volume of water, and the economically efficient price after that. If the only goal is that the water supplier break even, what should be the “early” price, and at what quantity should the price drop to the economically efficient price? You may make any assumption you like about fixed costs, but be sure to state those assumptions explicitly in your answer.
Velocity remains constant at 8 and the money supply increases from $200 billion to $300 billion. If real GDP increased by 10?%, then the price level increased by __ ?%?
Assume the government now imposes a (binding) maximum legal price for physician office visits (i.e. a price ceiling on the physician office visits). Under what condition would such a policy make a difference in the market (i.e. cause a market distort..
As a result of the American workers' ability to sell their labor though a union, profit-making firms must pay wages:
Assume that there are two identical firms in an industry, each producing the same good at the same constant marginal cost of $60. Make a table, similar to the one we made in class, for the Bertrand, Cournot and Monopoly models, showing the following:..
You can sell 100 pet chias per week if they are marked at $1 each, but only 40 each week if they are marked at $2/chia. Your chia supplier is prepared to sell you 30 chias each week if they are marked at $1/chia, and 70 each week if they are marked a..
Refer to the figure below and assume that the combined consumer goods + capital goods values for points a, b, and c are $20 billion, $40 billion, and $36 billion respectively. If the economy moves from point a to point b over a 10-year period, what m..
A manufacturing company wants to decrease its labor costs by substituting skilled welders with robot welding machines. If the company marginal tax rate is 36% is the investment a good idea?
In recent years, Americans are finding new jobs but aren't finding employers willing to give meaningful pay increases. The unemployment rate is the lowest in 7 years. Never before has the unemployment rate been so low but wages have stayed so flat. W..
If the US Dollar is equal to 10 Mexicxan Pesos. Then we can say that the US Economy is doing better than Mexico's economy and the US Dollar can buy more than the Peso.
Sketch the isoquant corresponding to an output level of 100 units What is the MRTS for this production function? Does the isoquant exhibit a diminishing MRTS?
A police officer stops a subject based on reasonable suspicion that the subject is about to engage in criminal conduct and has reasonable suspicion that the subject is armed. While conducting a frisk or pat down of the subject, the officer feels an o..
Suppose a union that represents some but not all of the employees in an industry is considering a strong push for increased pay for their members during the upcoming contract negotiations. However, they are concerned about the possibility that the co..
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