How much will beths greedy father get

Assignment Help Econometrics
Reference no: EM13203844

Beth's Lawn Mowing Service is a small business that acts as a price taker (MR = P). The prevailing
market price of lawn mowing is $20 per acre. Although Beth can use the family mower for free, she has other costs given by
Total cost = 0.1q^2 + 10q + 50
Marginal cost = 0.2q + 10
where q = the number of acres Beth chooses to mow in a week.
Suppose Beth's greedy father decides to charge for the use of the family lawn mower.

If Beth's greedy father imposes a charge of $2 per acre for use of the family mower, how will this affect Beth's marginal cost function? How will it affect her profit-maximizing decision? What will her profits be now? How much will Beth's greedy father get?

Reference no: EM13203844

Questions Cloud

Capital for its different operating divisions : what problems might you encounter? What are two techniques you could use to develop a rough estimate for each division's cost of capital and Under what circumstances would it be appropriate for a firm to use different costs of capital for its diffe..
What is the average of the two temperatures : the highest recorded temperature is 136 farenheit and the lowest record temperature is -128.6 farenheit. what is the average of the two temperatures?
Are any of the stocks an obvious buy compared : Given the following additional data: HPG T CSCO 5 year expected dividend growth rate(%): 8.44 4.04 4.68 Long term growth rate after 5 years (%) 5.5 2.0 5.5 Stock Price($) dividend($ annual) Hewlett Packard (HPQ) 25.63 0.48 AT&T (T) 29.39 1.74 Cisco S..
Compute the work required to compress : Compute the work required to compress a spring 2 more cm when it is already compressed 3 cm, assuming that the spring constant is k = 150 kg/s2.
How much will beths greedy father get : If Beth's greedy father imposes a charge of $2 per acre for use of the family mower, how will this affect Beth's marginal cost function How will it affect her profit-maximizing decision What will her profits be now How much will Beth's greedy fath..
Determine how many firms operate in the long run : Suppose there are n identical firms in a market in long run. Each firms cost function is given by C=32+.5q^2, where q is the amount that an individual firm produces. This means that an individual firms marginal cost is given by MC=q.
How many cups of each type were sold at dollar value : how many cups of each type were sold? What was the dollar value of each type of cup sold?
Calculate value of the stock using the dividend growth model : Determine the coupon rate of bonds and compare it to the market price. Explain factors affecting bond risk and describe some covenants associated with bonds.
Are stocks an obvious buy compared to current market price : a) Using the 2 step growth model, calculate the price of the 3 stocks. b) Are any of the stocks an obvious buy compared to the current market price c) If you had a stock selected for part b, explain where the analysis may have gone astray.

Reviews

Write a Review

Econometrics Questions & Answers

  Derive the expression for the profit maximization

A producer produces good y using a single input x according to the production function y=x^a where 0

  What is the marginal cost of flying an additional mile

What is the Marginal cost of one more passenger on a 1,200 mile flight if there are between 250-300 passengers. If the number of passengers is 300 and the flight is between 1,200 and 2,500 miles, what is the marginal cost of flying an additional mi..

  Reduction in tax rates increase governments tax receipts

Use a Keynesian 45-degree diagram to show the effect of an increase in government spending and how could a reduction in tax rates increase government's tax receipts?

  How much surplus do producers receive

The supply curve for product X is given by QXS = -340 + 10PX . a. Find the inverse supply curve. P = + Q b. How much surplus do producers receive when Qx = 350? When Qx = 1,000?

  How long will it take them to have a total of account

Mario and Claudia deposit $100 into their joint account at the end of each month. If their account earns 7 percent/year/year/month (7 percent per year compounded quarterly), how long will it take them to have a total of $15,000 in their account

  What is the cross price elasticity of demand of goods

The demand of product (X) is given Qx=14-3Px+4Py. Xsells for $5/unit and Y sells for $2.5/unit. 1 what is the cross price elasticity of demand between goods X & Y at these prices. 2 What is the own price elasticity of demand at these prices

  How many visits will physicians provide to public

The state Medicaid agency has set a rate of $5.50 per visit for all Medicaid enrollees who visit a physician. Each physician also has private paying patients. The demand curve for each physician can be characterized as follows, and physicians can ..

  What numbers would you use to back up your decision

Vander's sells bicycle in a small shop on main thoroughtfare, and the manager has computed some numbers based on past sales of bikes. she estimates the demand curve to be P=80-2Q. costs are given by C=200+20Q.what numbers would you use to back up y..

  What is the socially optimal length of the fireworks show

The mayor decides how long each fireworks show will last each year. This year, she has a new plan: each of the 20 town citizens will send in their marginal utility of a minute of fireworks to the mayor who will then compute the optimal amount of fi..

  What is the level of production and price

A firm faces the following average revenue (demand) curve: P = 120 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 25,000.

  Compute the annual payment of the savings account

The parents of a young child decide to make equal annual payments into a savingsaccount, with the first payment being made on the child's fifth birthday and the last payment being made on the fifteenth birthday. Then a rotal of four withdrawals of..

  How much will deposits in the commercial banks change

The Federal Reserve has just purchased $100 million in Treasury bills from commercial banks. b. If the public holds a fixed amount of currency (so that all loans create an equal amount of deposits in the banking system), the minimum reserve ratio ..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd