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Consider a total cost function of TC = 0.5Q2 +10Q + 20 and the market demand equation Q = 70 - P. What is the profit-maximizing output and price for the perfect competition? Calculate its profit.
An article in Forbes discussed an estimate that the cost of materials in Apple's iPhone 5 with 64 gigabytes of memory was $230. Apple was selling the iPhone 5 for $849 (most phone carriers made payments to Apple that reduced the price to consumers..
Define tax multiplier MT ≡ ?Y∗/?T and government expenditure multiplier MG ≡ ?Y∗/?G (in calculus terms, MT = ∂Y∗/∂T and MG = ∂Y∗/∂G)
In perfect competition, profits will disappear in the long run as new firms enter the market; in a monopoly, profits may exist in the long run. In the short run, both monopoly and perfect competition attempt to minimize total costs.
Equate the following cash flows to equal cash flows in years 5,6,7,8 and 9. Let i = 8% per year. Use a uniform gradient factor in your solution.You have the following end of year cash flows: Y0 = $400 Y1 = $300 Y2 = $200 Y3 = $100
If planned investment increases by nine dollars and disposable income increases by ten dollars, what is the marginal propensity to consume?
(a) Explain what is meant by a 90% confidence interval for a sample proportion. (b) Test whether there is a difference in the proportion of customers satisfied or very satisfied with the service provided at the two call centers.
What are the four sources of market failure? Explain how each of them causes individual profit- and utility-maximizers to make decisions that may be privately optimal but are socially suboptimal. What general policies might correct each of the instan..
For the past four years, Armonco Manufacturing has been offering a three-year limited warranty on all appliances it manufactures. Although all appliances are given a unique serial number when manufactured, until this year Armonco had no capability..
Despite the advantages of outsourcing for companies, the practice has attracted much criticism from the US public and some politicians.
Compute the implied arc income elasticity of demand. Holding all else equal, would a further increase in price result in higher or lower total revenue.
the hypothetical information in the following table shows what the economic situation will be in 2015 if the fed does
Analyze the modern notion of microfoundations with Marx's 'real foundation' for the analysis of economic activity.
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