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Suppose the total benefit derived from a given decision, Q, is B(Q) = 25Q - Q^2 and the corresponding total cost is C(Q) = 5 + Q^2, so that MB(Q) = 25 -2Q and MC(Q) = 2Q.
What level of Q maximizes net benefits?
The internal study could be started immediately, and then the decision on the consultant could be made in three months. If this option is selected, the internal study will reliably indicate the outcome. If the consultant were hired, it would add t..
The mayor considers engaging in direct quantity regulation (also called "command- and-control") and declares that each firm must engage in 42.5 units of pollution abate- ment. If the plants are controlled by the same firm, would it be socially optima..
Draw the indifference curve for U = 20. For what values of p1/p2 will the optimum be \(x_{1} = 0\) If neither x1 and x2 is equal to zero and the optimum is unique, what must be the value of x1/x2?
Calculate your total tax liability under the 2013 federal income tax structure, assuming your income is $75,000. Assume you are single and using the personal exemption of $3,900 and the standard deduction of $6,100. Calculate your effectiv..
Suppose nominal GDP in 2005 was $15 trillion, and in 2006 it was $16 trillion. The general price index in 2005 was 100, and in 2006 it was 103. Between 2005 and 2006, real GDP rose by what percent
The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, & the price of the firm's output id $25. The cost of other variable inputs is $400,000 per day. Assume that total fixed cost equal..
An insurance company wants to estimate the mean score on this exam for students who have enrolled in a special study program. They take a sample of 8 students in this program and determine that their scores are: 2, 5, 8, 8, 7, 6, 5, and 7. This sa..
The table below shows the probability that a mother in a given part of the income distribution (given by the row) will have a daughter in a given part of the income distribution (given by the column). So, for example, the daughter of a women with ..
Now calculate the GDP deflator for 2011 and 2012 (assuming that 2011 is the base year). d) What is the rate of economic growth between the two years as defined byt he percent change real GDP. e) What is the rate of inflation between the two years?
You got a loan for $1,000,000. It is a 30 year loan, but you are going to pay it off in 15 years. The APR is 8% and you make annual payments off $88,827,43. The Salvage value at year 15 is $300,000. What is the payoff amount
where QI refers to the number of games they would play if the price of a game were PI. Because of their access to credit, they would be willing to pay an up-front fee to join the club. Wizards live from pay check to paycheck and would be willing t..
A firm sells its product in a perfectly competitive market where other firms charge a price of $130 per unit. The firm's total costs are C(Q) = 40 + 10Q + 2Q2. a. How much output should the firm produce in the short run?units
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