Reference no: EM13126219
1. Suppose that Amber's demand for gasoline is given by G = 1000 - 200PG, where G stands for gallons of gas and PG represents the price of gas.
a. Suppose gas sells for $2 per gallon. What is Amber's consumer surplus?
b. Suppose the price of gas rises to $3 per gallon. What is the change in Amber's consumer surplus?
2. Suppose you mange a firm with two production plants. The marginal product of labor at plant 1 is MP1 = 1400 - L1 where L1 is the number of workers employed in plant 1. The marginal product of labor at plant 2 is MP2 = 2000 - L2 where L2 is the number of workers employed in plant 2. Given that you have 1,000 workers, what is the best allocation of workers between the two plants?
3. Suppose a firm produces its output in two different plants. Production costs at plant 1 are given by C1 = 4(Q1)2, where Q1 is the amount of production at plant 1. The production costs at plant 2 are given by C2 = 2(Q2)2, where Q2 is the amount of production at plant 2. The
corresponding marginal costs at each plant are MC1 = 8Q1 and MC2 = 4Q2. If the firm produces a total of 24 units of output, how much output should it produce at each plant?
4. Suppose a competitive firm produces spaghetti dinners. The market price of a spaghetti dinner is $20. The cost of making the dinners is given by C(Q) = 10Q + (Q2/160). The marginal cost is given by MC = 10 + (Q/80).
a. How many spaghetti dinners should the firm make each day?
b. What if the firm has avoidable fixed costs of $1562.50?
c. What is the firm's supply function if there is no avoidable fixed cost?
d. What is the supply function if the firm has avoidable fixed costs of $1562.50?
5. Suppose the government wants to increase the price of a specific agricultural product.
Discuss the welfare effects of four possible policies: price floor, price support, production quota and voluntary production reduction. Which policy is least efficient? Discuss the differences in the benefits to farmers and the cost to the government.
|
Determine the intrinsic mva of division
: Given growth rate of 5%, determine the intrinsic MVA of each division. What is the intrinsic MVA of each division if growth is instead 6%?
|
|
Explain this type of revenue recognition transaction
: Explain this type of revenue recognition transaction, and what factors should be considered in determining when to recognize revenue in this transaction?
|
|
Calculate how many moles of kio3 are needed
: calculate how many moles of KIO3 are needed to make 50 ml of 0.20 M solution?
|
|
What body temperature is the ninety five percentile
: A person's body temperature is found to be 101.00 °F. Is the result unusual? Why or why not? What should you conclude? What body temperature is the 95th percentile?
|
|
What is firms supply function
: Discuss the welfare effects of four possible policies: price floor, price support, production quota and voluntary production reduction. Which policy is least efficient? Discuss the differences in the benefits to farmers and the cost to the governme..
|
|
Calculate the mass of nitrogen dissolved
: Calculate the mass of nitrogen dissolved at room temperature in an 77.0 home aquarium. Assume a total pressure of 1.0 and a mole fraction for nitrogen of 0.78.
|
|
What mass of oxygen is needed
: when 31g of phosphorus reacts with oxygen, 71g of an oxide phosphorus is the product. What mass of oxygen is needed to produce 13g of this product?
|
|
Probability to filed a claim within the last year
: 40 percent of policyholders 55 years or older submit a claim during the year. Fifteen policyholders are selected at randomhow many of the policyholders would you expect to have filed a claim within the last year?
|
|
Relative high audit fees
: Explain how acceptance of large, high risk audit clients for relatively high audit fees may threaten and audit firm's de facto and perceived independence. Under what circumstances should such prospective clients be avoided?
|