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An apple farmer must decide how many apples to harvest for the U.S. market. He knows that there is a one-half probability that the world price will be $6, a one-quarter probabaility that it will be $8, and a one-quarter probability that it will be $10 per bushel. His cost function is C (Q) = 0..1 Q^2. How many bushels of apples should the farmer bring to market to maximize profits?
If the money supply is growing at 8%, the real rate of growth of GDP is 2%, and financial innovations are reducing the demand for money by 0.5% per year, what should the long-run inflation rate be?
The average revenue for product Q is given by AR = 120 – 3Q and the total cost of Q by: Find the price function and then the TR function. See Assignment 3 or 4 for an example. What total profit will result from selling the quantity found in (c) at th..
Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $120 million to $240 million between one year and the next. Assuming that the price of gold increased by 100 percent over the same period, by what n..
Assume the short-run aggregate supply curve can be expressed algebraically as: Y = 4,500 + 3,000π and the dynamic aggregate demand curve can be written as: Y = 5,000 – 1,000π. Find the numerical value for the short-run inflation rate? Find the numeri..
q1. explain a voting pattern using the actual votes taken by at least 15 legislators in the u.s. congress a state
If the economy is experiencing a large recessionary gap, what dicretionary policy might the government use to get the economy out of the output gap?
The firm, Beta, is under a bad management such that the dividend payment is expected to decrease at a rate of 4% per year. Suppose the recent dividend payment is $3 per share and the stock price is $30. What is the required return of the stock? If no..
The initial cost of a pickup truck is $11289 and will have a salvage value of $3730 after five years. Maintenance is estimated to be a uniform gradient amount of $133 per year, with zero dollar for first year maintenance. The operation cost is estima..
A suntan lotion company is interested in expanding to another market. In Miami, there is a 60% chance of selling 5,000 units at a $5 profit/unit, a 20% chance of selling 4,000 at a $8 profit/unit, and a 20% chance of losing $5,000. In Las Vegas, ther..
Discuss how advertising affects consumer demand. Discuss how advertising affects consumer demand. Explain why fiscal policy might be needed. Explain how fiscal stimulus or restraint is achieved
Nominal GDP is the variable most commonly used to measure short-run economic fluctuations. These fluctuations can be predicted with some accuracy. Real GDP is the variable most commonly used to measure short-run economic fluctuations. It is almost im..
The law of demand implies that when the price of a good rises, people buy less of it. This makes the demand curve slope monotonically downwards. But take a stock on the rise; might there not at least be one tendency for people to buy more of it under..
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