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Suppose that the demand function for a monopoly is given by
Q(A,P) = 100-P+A^0.5, where Pis price, and A is its advertising level. Its marginal cost is 5, and its marginal cost of advertising is 1. Calculate the output level, price level for profit maximization. What is the optimallevel of advertising?
Determine the path followed by capital per worker and output per worker in the first 15 periods after z falls.
Why it is generally not reasonable to say that a particular Pareto-efficient allocation is the most desirable allocation that can be reached.
Your savings account was earning 3% interest. What are explicit and implicit costs of your decision. What is total opportunity cost this year of starting shop.
Q. What is the probability the salesman will make exactly $50 in the next hour?
A perfectly competitive industry has a large number of potential entrants. all firms have identical cost structure and minimize cost at the same point where Min AC=MC. what will be the new market equilibrium price and quantity?
Allocative efficiency (where P = MC) is most likely to occur under which of the following type of market structures?
Captain Caine has a charter fishing boat named Bounty. He runs excursions for tourist to fish for either tuna (T) or marlin (M). The following equation represents the Bounty’s PPF for a typical month: T = 60 – 1.5M a. Graph the PPF for the Bounty..
Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 cents. Plot the corresponding supply curve on the same graph using the ..
What are the “boundaries” of a firm? What determines the extent of vertical boundaries? What determines the extent of horizontal integration? Use a cost-benefit analysis to describe the optimal boundaries of a firm.
If labor and capital (inputs) are perfect complements in production, but 4 units of labor are needed per unit of capital, find the production and cost functions. Find the cost function for the general form of perfect complements, f(L, k) = min{aL, bk..
On your graph, label production and consumption of cars and sugar in Home. H. Is trade beneficial to Home and Foreign.
What are some explicit costs of going to school? What are some implicit costs of going to school? How do you make the decision to go to school? What is judicial review and why is it such an important power? Examine one instance of judicial review hav..
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