Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Top Gun Marketing, Inc., offers overhead banner fly-by promotion services using their Cessna aircraft and banner creation facilities. The Padres Island firm specializes in restaurant promotion via fly-bys at outdoor events and other high traffic centers, where each 10 minute increment of advertising costs $300. Over the past year, the following relation between fly-by advertising and incremental restaurant guests per month has been observed: Sales (units) = 5,200 + 50A - 0.5A2 Here A represents a 10-minute fly-by advertisement, and sales are measured in numbers of restaurant guests. Pete Mitchel, manager for the Padres Island firm, has been asked to recommend an appropriate level of advertising. In thinking about this problem, Mitchel noted its resemblance to the optimal resource employment problem he had studied in a managerial economics course that was part of his MBA program. The advertising-sales relation could be thought of as a production function with advertising as an input and sales as the output. The problem is to determine the profit-maximizing level of employment for the input, advertising, in this "production" system. Mitchel recognized that to solve the problem he needed a measure of output value. After consultation with the restaurant, he determined that the value of output is $10 per guest, the net marginal revenue earned by the client (price minus all marginal costs except fly-by advertising). A. Continuing with Mitchel's production analogy, what is the "marginal product" of advertising? B. What is the rule for determining the optimal amount of a resource to employ in a production system? Explain the logic underlying this rule. C. Using the rule for optimal resource employment, determine the profit-maximizing number of 10-minute ads.
Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table:
Assume that there're 10 million workers in Canada and South Korea and each worker in Canada and South Korea can manufacture four cars per year.
Tom have only $60, and he want to spend it all on clothing (X) and food (Y), Price of clothing is $4. Find out the optimal values of both goods (Y*,X*) and Utility?
Calculate the equilibrium real wage rate and the equilibrium quantity of labor. Suppose that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1.0. Compute the real wage rate.
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Suppose that all other banks hold only the required amount of reserves. If Nan Bank Inc. decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase?
A firm with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price-discriminate-What would happen if it were forced to charge all its customers the same price?
Field discusses the key threats to sustainable management of forests and agricultural resources. First summarize these threats. Then,
For several years, Palm was the dominant manufacturer of PDAs (personal digital assistants). However, a number of other manufacturers have since entered the PDA market.
The FCC has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue.
Please evaluate the effect of the following scenario on the AD curve, AS curve, and accordingly the effect on equilibrium price level and equilibrium GDP/output.
Compute the total revenue and total economic profit at each level of output. Compute the pizza shop's marginal costs and marginal revenue level of output. What is the profit maximizing rate of output for pizza shop?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd