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Mehnaz has already made arrangements for her birthday celebration: she is inviting her 7 friends to a dinner party at a famous Montreal restaurant (Mehnaz will pay for everything). The estimated cost of this dinner includes $55 per person for the 3 course meal, as well as 4 bottles of wine at $120 per bottle. However, she has second thoughts now! She is thinking of inviting her friends to her house. Doing so, she needs to hire a catering company that asks for $500 flat fee for a buffet. Wine is not included. She can buy 4 bottles of wine from SAQ at $70 per bottle. Moreover, she will have to cancel reservations at the restaurant and pay a fine of $100 (for late cancelation). What is the marginal cost of her changing her decision?
Find (all) the partial derivatives (e.g. ?u/?x and ?u/?y) of the following functions: 1. Q(p,I) = 300 - 3p - 4I 2. u(x,y) = 10xy 3. u(x,y) = ax? y? 4. z = (x+y)2 5. z = 2x3-11x2y +3y2
According to the chief engineer at the Zodiac Company, Q = ALf Kf , where Q is the output rate, L is the rate of labor input, and K is the rate of capital input. Statistical analysis indicates that f = 0.8 and f = 0.3. The firm's owner claims the ..
Suppose that two firms compete in quantities (Cournot) in a market in which demand is described by P = 260 - 2Q. Each firm incurs no fixed costs but has a constant marginal cost of 20. a. What is the one-period Nash equilibrium market price What is t..
Typically farmers make production decisions for the current year using the previous year's crop prices (or a weighted-average of several previous years of crop prices). Since carrots are planted year-round, it is not unreasonable to specify curren..
A single producer of both products controls the entire market for beverages in this city and is considering strategies to bundle one bottle of health drink with one bottle of fruit juice. Assume that the marginal cost of supplying both varieties i..
Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of hours the bakery is open as shown in the table.
In this economy, all production output goes to either consumption or savings. The saving rate is fixed at s where 0
Once again, assume Cournot competition in an industry in which market demand is described by P = 260 - 2Q and in which each firm has a marginal cost of 20. However, instead of two firms, let there now be four. a. What is the one-period Nash equilibri..
In the second quarter of 2006, household income was $13,134 billion, consumption was $9,162 billion, investment was $3,340 billion, and net exports were -$777 billion. What was the level of government spending in the second quarter of 2006
You spendthrift cousin want to buy a fancy watch for $425. Instead, you suggest that she buy an inexpensive watch for $25and save the difference of $400 for 40years in account earning 9% interest per year.how much will she accumulate in this accoun..
Q = 123 - 0.5P - 0.25 Pc + .01 Y where Q is the quantity of seasonal passes sold, P is the price for seasonal pass, Pc is the average price for concession items, and Y is average per capital income in Mapleville. what is the profit maximizing pric..
Country A has 1500 units of labor and can produce two goods, manufactures and food. A's producers take 5 units of labor to produce one unit of manufactures and 6 units to produce one unit of food. Country B has 1800 units of labor and takes 3 unit..
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