User Account

All Pages

Contrast a public good versus a private good

Assignment Help Business Economics
Reference no: EM13832477

1) Assume that the price of smart phones increased from $420 to $444 per unit. The manufacturer decides to supply 15,000 units instead of 12,000.

Calculate the price elasticity of supply.

Is supply elastic or inelastic?

Describe at least one factor that determines Price elasticity of supply (note, this is different than PE of Demand).

Hint: To answer this question we need to use the midpoint formula. Assume we have the two ordered pairs (Q1,P1) and (Q2,P2).

2) Compare and contrast a public good versus a private good. What are the principal characteristics of each? What are the two key characteristics of public goods? Is there a free rider problem when it comes to public goods? Why? Do you consider your local police force a public good or a private good? How come? How about your local TV service? Please explain your answer.

3) Use the following to answer the questions below:

z is the marginal utility per dollar, x is the amount spent on product A, and y is the amount spent on product B.

Assume MUA = z = 10 – x and MUB = z = 21 – 2y.

Assume that the consumer has $10 to spend on A and B; that is, x + y = 10.

(a) What is best way to allocate the expenditure of the $10?

(b) What is the marginal utility per dollar in the optimal allocation?

Reference no: EM13832477

Questions Cloud

Economic pacts have for international managers : Please write in your own words. How has NAFTA affected the economies of North America and the EU affected Europe? What importance do these economic pacts have for international managers in North America, Europe, and Asia?
Find the optimal consumption bundle : Julie spends all of her $60,000 salary on vacationing and remodeling projects. Her typical vacation costs $2,000 and the remodeling projects cost $4,000 each. What two conditions must be met for Julie to be maximizing her utility? solve the condition..
Identify all event elements that require promotion : Assignment: Arts Festival or Sporting Exhibition - PowerPoint and Audio Visual Assignment. Identify all event elements that require promotion. Target your promotion to those market segments that will support your event. Include eMarketing strategies ..
Alternatives to the sources of technological progress : Do developing countries have other alternatives to the sources of technological progress you mentioned in the question above? Explain your answer. Do you see any reasons developing countries may choose to have poor patent protection? Are there any da..
Contrast a public good versus a private good : Assume that the price of smart phones increased from $420 to $444 per unit. The manufacturer decides to supply 15,000 units instead of 12,000. Calculate the price elasticity of supply. Is supply elastic or inelastic? Compare and contrast a public goo..
What is the trend in weekly price of each sku-Using Stata : How many cases of Robert Mondavi Private Select were sold each year from 2005-2008? a. Construct a table showing the total number of cases sold each year. b. Construct a bar graph showing the total number of cases sold each year. What is the trend in..
Does the country have environmental laws : Research coffee bean producing countries on the Internet, and choose one country along with a grower that would have the greatest supplier potential to import beans for domestic sales with your distribution firm. Does the country have environmenta..
Which of the following does not involve a force : Which of the following does not involve a force
List the protective measures : List the advantages and disadvantages for the United States to protect its catfish industry. List the protective measures (instruments) the United States has not used to protect its catfish industry. Briefly explain why each would or would not be suc..

Reviews

Write a Review

Business Economics Questions & Answers

  Result in lower prices if they were to occur in isolation

Select the scenarios that result in lower prices if they were to occur in isolation? Consumers can make costly mistakes when not enough information is available. Which of the following represents a market solution to obtaining costly information?

  Elucidate why a system of marketable pollution permits lead

Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.

  Reinvestment in the firm this year

MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.

  Consider that profit involves total revenue and total costs

This will provide insight into the idea of the optimal number of workers and the value of the marginal product of labor. If wages in the restaurant is $9.00 per hour and the price of a Hamburger is $4.00 and the production function for the workers is..

  Reduce output so that average total costs would decline

A farmer is producing where MC = MR. Say that half of the cost of producing wheat is the rental cost of land (a fixed cost) and half is the cost of labor and machines (a variable cost). In the short run, the farmer should shut down because he is maki..

  Compute the unemployment rate as the us bureau

The nation of Wrexington utilizes the same method to Compute the unemployment rate as the U.S. Bureau of Labor Statistics utilizes. From the data below, Compute Wrexington's unemployment rate.

  Absorption costing approach to cost-plus pricing

Lafave Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 95,000 units next year, the unit product cost of a particular product is $46.70. The company..

  Who has priority to the collateral

Metro claims that at the time of its loan it was unaware of HFCs interest. Between these parties, who has priority to the collateral? Discuss your answer.

  Make a business plan of a mini golf

Make a business plan of a mini golf, with actual real numbers and information, like i was going to build one

  Catching illegal parkers is expensive

You have been appointed head of university parking enforcement. Your mission is to eliminate illegal parking. Car drivers are completely rational expected utility maximizes. They have utility functions given by u=x(1/2) where x is $ of consumption on..

  Efficient amount of pollution control

The Environment Ministry in Japan proposed new carbon tax in order to meet Japan obligations to decrease carbon dioxide emissions under Kyoto Treaty.

  Major sporting events in terms of market shortages

Can you explain the practice of scalping tickets for major sporting events in terms of market shortages? How else might tickets be distributed? If rent controls are so counterproductive, why do cities impose them? How else might the housing problems ..

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