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Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q)=150+28Q-5Q^2 and C(Q)=100 + 8Q(Note: MB(Q)=28-10Q and MC(Q)=8.
What level of Q maximizes net benefits?At the value of Q that mazimizes net benefits, what is the value of marginal net benefits?
Consider three alternative policies, each with a different set of outcomes in terms of output and inflation, as shown in following table: Output Output Output Inflation Inflation Inflation Policy A Policy B Policy C Policy A Policy B Policy C
Some time ago you put $500 into a bank account for a "rainy day". Since then, the bank has been paying you 1% per month, compounded monthly. Today, you checked the balance and found it to be $708.31. How long ago did you deposit the $500
Money can be deposited at 6% compounded quarterly. What end-of-quarter deposit must be made from the son's third birthday to his 18th birthday to provide $60,000 on each birthday from the 18th to the 21st.
Consider a monopolistically competitive market with N firms. Each firm's business opportunities are described by the following equations: Demand: Q=100/N-P Marginal Revenue: MR=100/N-2Q Total cost: TC=50+Q(squared) Marginal Cost: MC=2Q
During a recession, the hotdog project will earn $12,000.00 and the Champaign project will lose $8,000.00. If the alternative is earning $3,000.00 on government Treasury bill (T-bill), what should the manager do? Why?
Calculate the marginal revenue product for each additional unit of labor if output sells for $3 per unit b. Draw the demand curve for labor based on the above data and the $3-per-unit product price c. If the wage rate is $15 per hour, how much labor ..
A building is priced at $125,000. If a down pament of $25,000 is made and a payment of $1,200 every month thereafter is required, how many months will it take to pay for the building. Interest is charged at a rate of 9% compounded monthly.
In late 1990s more than twenty-five domestic steel firms have filed for bankruptcy. A combination of low values with strong competition through foreign competitors and so-called legacy expenses of unions are cited as the primary reason why so many s..
Suppose a prot-maximizing monopolist is producing 800 units of output and is charging a price of $40 per unit.a. If the elasticity of demand for the product is $ 2, nd the marginal cost of the last unit produced. b. What is the firm's percentage mark..
In 1984, Walt Disney brought in Michael Eisner, a Paramount executive as CEO. The firm's board of directors agreed to pay Eisner a salary of $750,000 plus a $750,000 bonus for signing on, plus an annual bonus equal to 2 percent of the dollar amoun..
If the rate of discount is 20 percent, a Would you rather receive $100 today or $120 in one year b Would you rather receive $205 today or $240 in one year c Would you rather receive $500 in one year or $610 in two years
Solve the following linear programming model graphically. In addition, write the problem in standard form and do a constraint analysis for the optimal solution. Minimize 10x + 15y Subject to 5x + 2y ? 40 x + 2y 0
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