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1) Toys Corporation has estimated its demand and cost function as follow:
Q = 25 - 0.05P
TC = 780 + 200Q
a) What will be the price and quantity if Toys would like:
1) Maximize profits
2) Maximize income
3) Maximize income, but requires aminimum profit of $300?
Discuss and explain the major barriers to entry into a industry. Describe how each barrier can foster monopoly or oligopoly.
Write an assembly language subroutine
The effective capacity and efficiency for next quarter at MMU Mfg. in Waco, Texas, for each of three departments are given below. Compute the expected production for next quarter for each department.
Discuss and explain the limitations of the United States "supply side" policy in the war on drugs. Can we win the war on drugs? Describe your position on legalization.
Identify each as being consistent with risk averse, risk neutral or risk seeking behavior in investment project selection. Explain.
The market demand function of a company is given by 8P + Q - 64 = 0, and the company's average cost function takes the form AC = 8/Q + 6 - 0.4Q + 0.08Q2.
Assume a firm's production function is given by Q = 12L - L^2 for L = 0 to 6, where L is labour input per day and Q is output per day. Derive and draw the firm's demand for labour curve if output sells for $10 in competitive market.
Compute the formula for Bob's indi erence curves by setting and compute Bob's MRS as a function of C and P
Assume you were appointed economic adviser to a less developed country in Africa. The country seeks to encourage capital formation and wants to raise the rate of saving of its own residents and encourage foreigners to invest in their country.
Competitive industry, market determined price =$12, Output = 50 units, ATC = $10, Marginal cost = $15, AVC = $7-Is this firm making the right profit maximizing decision? If yes, why and if not, what should this firm do?
Indifference theory can explain all rational choices and behavior and try the theoryout on this situation. Suppose the only consideration for couples to have a bby or not was money. If a baby costs $8,000 a year.
Although Ken Brown (discussed in problem 3-16) is the principal owner of Brown Oil, his brother Bob is credited with making the company a financial success. Bob is vice president of finance.
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