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1. Suppose that you can sell as much of a product as you like at $92 per unit. You marginal cost (MC) for producing the Qth unit is given by: MC=10Q. If fixed costs are $350, what is the optimal output level?
2. Suppose a firm has as its total cost function: TC= 24+2Q^2, and its output can be sold at $44 per unit. Using calculus to find the firm's profut- maximizing output. What is the maximized profit?
Your car gets 9.5L/100 km at 90 km per hour (kph) and 11.5 L/100 km at 110 kph. At what speed should you make an 800 km trip: a.) If gas cost $0.90 per litre and your time is worth $18/hour? b.) If gas costs $1.00 per litre and your time is worth $12..
Suppose an economy has no imports and no income taxes. Its marginal propensity to consume (MPC) is $0.75, and its real GDP level is $250 billion. Businesses increase their investment by $10 billion. Calculate the multiplier and the change in GDP.
A worker in Rhode Island can produce 1 pound of corn in 15 minutes and 1 pound of shucked oysters in 10 minutes. A worker in South Carolina can produce 1 pound of corn in 20 minutes and 1 pound of shucked oysters in 60 minutes. Which state has a comp..
How each market participant cares only about their own self interest rather than about the overall efficiency of resource us
Suppose that the adult population is 9,918, the unemployment rate is 6% and the labor force participation rate 71%. How many people are employed?
Find the equivalent equal payment series (A) using an A/G factor such that the two cash flows are equivalent at 10% compounded annually. First cash flow: Start at -$50 at year zero and goes up every year in increments of $50 so at year five its at $2..
What is the difference between short and long run in terms of the quantity of inputs used in production of goods and services? Are supply and demand generally more elastic in the long run? Provide an example.
An alternative requires $60000 to be paid over the course of year 1, $75000 over year 2, and $40000 over year 3. All values are in constant dollars. Using the tables in the chapter, compute the NPV of this alternative.
Discuss what will happen in this market as it moves to a new equilibrium. If a hard breeze eliminates Brazil's premium coffee corp, what will happen to the price of premium coffee.
Suppose that consumers’ incomes increase by 16 percent, which results in a 0.4 percentage increase in the consumption of farm goods at current prices. What is the income elasticity of demand for farm goods?
Describe and explain the perspectives of three stakeholders. Include a discussion of the main arguments they put forward and the resolution/s they would opt for.
Name three products for which impatience on the part of the consumer enables a firm to price-discriminate. At many amusement park, customers who enter after 4 pm receive a steep discount on the price of admission. Explain how this practice is a form ..
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