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The widget industry is perfectly competitive. The industry demand and supply functions for widgets are given below.
Qd = 424 - 40PQs = 40 + 8P
What is the equilibrium price and quantity for the industry?
Regis hungry for a snack. Here is the value he places on a cupcake: Value of first cupcake 5dollars Value of second cupcake 4dollars Value of third cupcake 3dollars Value of fourth cupcake 2dollars From this schedule, derive regi's demand schedule. G..
Growth Fertilizer purchases a gravity settling tank by borrowing the $50,000 purchase price. The loan is to be repaid with four equal annual payments at an annual compound rate of 15%. It is anticipated that the tank will be used for 9 years and t..
Discounting is examined. Suppose that individual demand for a product is given by QD=1000-5P. Marginal revenue is MR=200-0.4Q, and marginal cost is constant at $20. There are no fixed costs. a) The firm is considering a quantity discount. The firs..
A mining company plans to invest $50,000 in a project. The annual operating cost is expected to be $6,000, and the annual income is expected to be $22,000. THe salvage value will be $5,000 at the end of 5 year life.
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 - 4P and C(Q) = 124 - 16Q + Q2. a. Find the inverse demand function for your firm's product. P = - Q b. Determine the profit-maxi..
A firm has a production function Q=F(K,L) with the constant return to scale, where k is units of capital and L is unites of labour.Imput prices are r=$2 per unit of K and w=$1 per unit of L.When it produces 5 units of output,it uses 2 units of cap..
Suppose there are three people discussing the amount of taxes they pay and wondering if the current tax system is fair. Jeff earns an income of $300,000 a year and has an annual tax bill of $40,000. Margaret earns and income of $200,000 a year an..
It has been hypothesized that overall success for college freshmen as measured by grade point average (GPA) is a function of IQ scores (X1), hours spent studying each week (X2), and one's high school average (X3). Suppose the regression equation i..
Assume that a hypothetical economy with an MPC of .7 is experiencing severe recession. By how much would government spending have to increase to shift the aggregate demand curve rightward by $30 billion
At the end of 1973 Japan had a per capita real output of $14,379. If, on average, Japan's real per capita output grew at a rate of 3 percent per year between 1973 and 1993. What would Japan's output per capita have been at the end of 1993
The best estimates for the first costs, yearly costs (O&M) and yearly benefits (Energy savings) are given below. However, uncertainty exists about the disposal cost and energy savings. The MARR is 5%; taxes and inflation can be ignored.
Suppose short-run output over the next four years is +1%, 0%, -1%, and -2%. According to Okun's law, what unemployment rates would we expect to see in this economy b. Consider another economy in which the unemployment rate over the next three year..
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