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A gas utility serves a small town with natural gas. The total cost function for the utility as a function of the amount Q of gas sold is:TC(Q) = 50,000 + 300Q + 0.4Q2The demand function for the customers is Q = 374 - 0.22P
A state regulatory commission, reacting to complaints of high prices and excessive profits, uses its authority to compel the utility to set prices equal to the average cost of the gas sold. What price will the utility now set? What will be the total revenue, total cost, profit, and consuerms surplus at this price? What is the total social welfare?
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor fo..
Suppose that college students in your tow persuaded the town council to enact a law settings the maximum price for rental housing at $400 per month. Will this help or hurt college students who rent housing In your answer, address how this price ce..
You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and quantities sold ..
MexicoTech, a Mexican company is offering ADRs in the US stock market. Presently its stock is traded in Mexico at 440 pesos per share while the peso exchange rate against the US dollar is 11 pesos per dollar. There are 500 shares of stock in each ..
Your company has purchased a large new truck tractor for over-the-road use (asset class 00.26). It has a cost basis of $180,000. With additional options costing $15,000, the cost basis for depreciation purposes is $195,000. Its MV at the end of fi..
How many units should be produced to maximize profit? How do this company's marginal costs behave as output increases? Provide a logical explanation as to why a computer manufacturer's marginal costs might behave in this way.
The loan is to be repaid in seven equal annual installments including interest. The firm's marginal income tax rate is 39%. The equipment qualifies for MACRS 5-year property. a. Calculate the interest on loan for each year.
Suppose that there is a consumer who consumes 2 types of goods: Good A and Good B. The consumer has $84 and the price per unit of Good A is $4 and the price per unit of Good B is $7.
a. Determine the Equivalent Annual Costs of the two alternatives and recommend the economically superior system.b. Determine a Salvage Value for the Beta system such that the Beta system will have an Equivalent Uniform Annual Cost equal to the Alph..
Consider the following information about Adam and Betty who wish to purchase season tickets for football and cricket at the Sydney Cricket Ground: Season ticket for cricket Adam's willingness to pay $100 Betty's willingness to pay $600
Suppose the total market value of all final goods and services produced this year in economy X is $4 million. Of the $4 million worth of goods, $3 million is sold and $1 million is held in inventory. For this year, the GDP for economy X is
1. What is the consumption spending C at the equilibrium 2. The government is willing to consider an increase in public spending only if the multiplier is higher than 1.5. Base on your calculations will the government implement the increase in govern..
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