Reference no: EM13889020
The following is a cost function for clinic visits in a small inner city clinic:
Quantity of Visits: 0, 1, 2, 3, 4, 5, 6
Total Cost Per Week: $10, 15, 25, 45, 75, 115, 165
b. If the price per visit is given to be $25, at what level of visits will the maximum profit position be? What are the profits at this level? What is the quantity supplied?
When answering, please explain how you computed the solution and what I should think about or look for when solving this type of problem.
|
Lower prices will result in fewer units being supplied
: Why is this statement wrong: "Economists argue that lower prices will result in fewer units being supplied. However, there are exceptions to this rule. For example, in 1972, a very simple 10-digit electronic calculator sold for $120. Lower prices di..
|
|
Situation on graph using budget lines-indifference curves
: Jonathan consumes two goods, steak and instant ramen noodles. When Jonathan has less than $100, instant ramen noodles are a normal good. However, when Jonathan has more than $100, instant ramen noodles are an inferior good. Show the situation on a gr..
|
|
What is the price elasticity of demand for the airport
: When tolls on the Dulles Airport Greenway were increased from $0.50 to $1.50, traffic decreased from 31,000 to 10,000 trips a day. Assuming all changes in quantity were due to the change in price, what is the price elasticity of demand for the Dulles..
|
|
Periods of very high inflation than during normal times
: Economists have often found that purchasing power parity gives a closer approximation to reality during periods of very high inflation than during "normal" times. can you provide an explanation for why this might be so?
|
|
Cost function-what is the quantity supplied
: The following is a cost function for clinic visits in a small inner city clinic: If the price per visit is given to be $25, at what level of visits will the maximum profit position be? What are the profits at this level? What is the quantity supplied..
|
|
What is the market value of his patent
: You have a friend who is a potter. He holds a permanent patent on an indestructible teacup whose sale generates $30,000/year more revenue than production costs. If the annual interest rate is 20%, what is the market value of his patent?
|
|
Main difference between neorealists and classical realists
: The main difference between neorealists and classical realists is that:
|
|
Consider small country that is an exporter of good
: Consider a small country that is an exporter of good X. Suppose the government imposes a tariff on imports of good X. Using one graph, showing demand and supply of good X in the home country, carefully illustrate the effect of a tariff imposed by the..
|
|
Price elasticity of demand for business travelers
: An airline estimates that the price elasticity of demand for business travelers (who travel on weekdays) is - 2, while the price elasticity of demand for vacation travelers (who travel on weekends) is - 5. If the airline price discriminates (and cost..
|