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Suppose you are the manager of Alpha Enterprises, a firm that holds a patent that makes it the exclusive manufacturer of bubble memory chips. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for bubble memory chips are Q = 25 - 0.5P; C = 50 + 2Q.
(a) What is the firm's inverse demand function? (Explain the demand function)
(b) What is the firm's marginal revenue when producing four units of output? (Explain the marginal revenue from the formula and get the MR for 4 Units)
(c) What are the levels of output and price when you are maximizing profits? (Explain how to maximize the profit)
(d) What will be the level of your profits? (Explain why the level will be such)
Your pension will pay approximately £6,000 a year British government 20-year bonds yield 2.6%. You are offered a lump sum in return for a waiver on annual payments. How much should you ask for?
Consider the following scenario to understand the relationship between marginal and average values. Suppose Raphael is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns wi..
Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli. Which tribe has the comparative advantage in spaghetti production? Which tribe has the compa..
Rational Behavior assumes "perfect" behavior on the part of human beings who are notoriously imperfect. For what reasons are they like this?
What is meant by the incidence of a tax? Explain why the statutory and actual incidence of a tax often differs.
A large electronics company is organized into mainly profit-center divisions. The components division and the consumer electronics division are profit-center divisions of the company. The consumer electronics division assembles components into device..
a fictional survey shows a decrease in drug use by young people in brooklyn. in the ensuing debate two hypotheses for
Amy Jane, a new manager at C & D Grooming, has been asked to focus on the competitive environment of the organization. Illustrate which of these factors is among those Amy Jane should focus on.
Two factors determine the legal reserves that a commercial bank must hold by law.
Consider a series of end-of-period CFs spanning 2046-2053, which increase at a 1% rate each period. The amount of the first CF in the series is $92. The interest rate is 3%. What is the equivalent value of this series at the beginning of 2046?
Based on Figure 1 if the Mexcian government imposes a per-unit tariff of $2.5 on calculators, the total quantity of calculators produced by Mexicans producers at equilibrium with international trade is
Assume a technological advance leads to lower production costs. Show the effect this will have on national income, unemployment, inflation, and interest rates with the help of an ADAS diagram, assuming completely flexible wage rates.
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