User Account

All Pages

What is the total cost of producing q units of honey

Assignment Help Macroeconomics
Reference no: EM132228780

Questions: 1. Suppose honey is produced in a beehive using bees and sugar. Each honey producer uses one beehive which she rents for $40/month. Producing q gallons of honey in one month requires spending 4q dollars bees, and 2q2 dollars on sugar.

a) What is the total cost of producing q units of honey for an individual honey producer in a given month?

b) In general, if the total cost of producing honey is a + bq + cq2, then the marginal cost of producing honey is b + 2cq. Assuming each honey producer operates as a price-taker, what is the monthly supply curve for an individual producer?

c) Let Q be the total market supply, and q is the supply of an individual firm. Therefore, q = Q/n where n is the total number of firms in the market. Suppose the demand for honey is given by Q = 548-4P. Also, suppose there are 60 honey producers in the market. What is the equilibrium price of honey?

d) How much profit does an individual producer make in a month?

e) How many firms will there be in long run equilibrium? (Remember, a firm will enter the market as long as it can make a positive profit, otherwise a firm will not enter the market.)

2. Suppose the demand for a product is given by Q = 200 - 5P.

a) Calculate the Price Elasticity of Demand when the price of the good is P = 8?

b) What is the Marginal Revenue of the firm when P = $8?

c) If the firm wants to increase their total revenue, should they increase or decrease the Price?

d) What price should the firm charge if it wants to maximize Total Revenue?

3. A monopolist faces a demand curve given by:

P = 200 - 10Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $60. There are no fixed costs of production.

A) What quantity should the monopolist produce in order to maximize profit?

B) What price should the monopolist charge in order to maximize profit?

C) How much profit will the monopolist make?

D) What is the deadweight loss created by this monopoly (hint: compare the monopoly outcome with the perfectly competitive outcome).

E) If the market were perfectly competitive, what would the price of the product be?

Reference no: EM132228780

Questions Cloud

Marketing games manipulate customers into giving away : Critics say marketing games manipulate customers into giving away an increasing amount of personal information without the real thrill of game playing.
Creating an account using portfolium : For this activity, you begin the development of your ePortfolio by creating an account using Portfolium, setting up a home page and adding a brief biography.
School operated on existentialist philosophy : How would you as a teacher/educator prepare for a day in a school operated on an existentialist philosophy?
Which arts lend themselves to conveying ideas of divinity : Are the arts necessary for us to grasp the divine realm at all? which arts most lend themselves to conveying ideas of divinity?
What is the total cost of producing q units of honey : What is the total cost of producing q units of honey for an individual honey producer in a given month? In general, if the total cost of producing honey.
Write a wealth report on Regis healthcare limited : This assessment requires you to prepare a wealth report for a prospective shareholder that interprets the annual report of an Australian company
Fraudulent charity fund-raising is widespread national : Fraudulent charity fund-raising is widespread national problem. The problem can be solved by a combination of government regulation and individual awareness.
Research the international operations of a company : Research the international operations of a company doing business in several countries. Obtain information related to: the products sold in various regions.
Five forces framework to analyze sustainability of industry : Utilize Michael Porter's five forces framework to analyze the sustainability of industry profits in one of the following industries

Reviews

Write a Review

Macroeconomics Questions & Answers

  Pending issues in context of global crisis

Describe some achievements and pending issues in context of global crisis?

  Problem of the book assuming that the utility is cobb-dougla

Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )

  Explain why is an increase in the number of varieties

Explain why is an increase in the number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.

  Suppose a friend you know requires a mortgage loan

Suppose a friend you know requires a mortgage loan to purchase a house. Your friend can purchase it now or wait until later and is unsure of what to do.

  How many variables are in the data set

How many variables are in the data set? What are "str" and "testscr" variables?(from the description) What is the mean and variance of str and testscr?

  The dividend is hopefuly to make at a constant rate

The dividend is hopefuly to make at a constant rate of 6.00% per year. What is the expected year-end dividend, D1?a) $2.20.

  Calculating growth rate of nominal gdp

Nominal GDP in a country was $8,759.9 billion in 2003 & $9,254.6 billion in 2004. The price index was 102.86 for 2003 & 104.37 for 2004.

  Determine price and the level of service

Sun City, Arizona, a retirement community that features full service living arrangements, is planning two proposals to provide lawn care to elderly residents.

  Illustrate what is the point price elasticity

Illustrate what is the point price elasticity for each person and for the market.

  Relationship between good c and good d

Suppose there are two goods, good C and good D. the cross-price elasticity of demand for these two goods is equal to - 0.8. a. What is the relationship between good C and good D? Explain your answer.

  What happens to prices and what happens to interest rates

The government of a country increases the growth rate of money supply from 5% per year to 50% per year. What happens to prices? What happens to interest rates? Why might the government doing this?

  Conclusion from the description given

2. Mitch Miller wants to use his optical drive to play a Moody Blues CD. When he inserts the disc and closes the drive tray, the drive turns, but he does not hear any music. What type of problem would a technician say this is?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd