User Account

All Pages

What is the total cost of producing q units of honey

Assignment Help Macroeconomics
Reference no: EM132228780

Questions: 1. Suppose honey is produced in a beehive using bees and sugar. Each honey producer uses one beehive which she rents for $40/month. Producing q gallons of honey in one month requires spending 4q dollars bees, and 2q2 dollars on sugar.

a) What is the total cost of producing q units of honey for an individual honey producer in a given month?

b) In general, if the total cost of producing honey is a + bq + cq2, then the marginal cost of producing honey is b + 2cq. Assuming each honey producer operates as a price-taker, what is the monthly supply curve for an individual producer?

c) Let Q be the total market supply, and q is the supply of an individual firm. Therefore, q = Q/n where n is the total number of firms in the market. Suppose the demand for honey is given by Q = 548-4P. Also, suppose there are 60 honey producers in the market. What is the equilibrium price of honey?

d) How much profit does an individual producer make in a month?

e) How many firms will there be in long run equilibrium? (Remember, a firm will enter the market as long as it can make a positive profit, otherwise a firm will not enter the market.)

2. Suppose the demand for a product is given by Q = 200 - 5P.

a) Calculate the Price Elasticity of Demand when the price of the good is P = 8?

b) What is the Marginal Revenue of the firm when P = $8?

c) If the firm wants to increase their total revenue, should they increase or decrease the Price?

d) What price should the firm charge if it wants to maximize Total Revenue?

3. A monopolist faces a demand curve given by:

P = 200 - 10Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $60. There are no fixed costs of production.

A) What quantity should the monopolist produce in order to maximize profit?

B) What price should the monopolist charge in order to maximize profit?

C) How much profit will the monopolist make?

D) What is the deadweight loss created by this monopoly (hint: compare the monopoly outcome with the perfectly competitive outcome).

E) If the market were perfectly competitive, what would the price of the product be?

Reference no: EM132228780

Questions Cloud

Marketing games manipulate customers into giving away : Critics say marketing games manipulate customers into giving away an increasing amount of personal information without the real thrill of game playing.
Creating an account using portfolium : For this activity, you begin the development of your ePortfolio by creating an account using Portfolium, setting up a home page and adding a brief biography.
School operated on existentialist philosophy : How would you as a teacher/educator prepare for a day in a school operated on an existentialist philosophy?
Which arts lend themselves to conveying ideas of divinity : Are the arts necessary for us to grasp the divine realm at all? which arts most lend themselves to conveying ideas of divinity?
What is the total cost of producing q units of honey : What is the total cost of producing q units of honey for an individual honey producer in a given month? In general, if the total cost of producing honey.
Write a wealth report on Regis healthcare limited : This assessment requires you to prepare a wealth report for a prospective shareholder that interprets the annual report of an Australian company
Fraudulent charity fund-raising is widespread national : Fraudulent charity fund-raising is widespread national problem. The problem can be solved by a combination of government regulation and individual awareness.
Research the international operations of a company : Research the international operations of a company doing business in several countries. Obtain information related to: the products sold in various regions.
Five forces framework to analyze sustainability of industry : Utilize Michael Porter's five forces framework to analyze the sustainability of industry profits in one of the following industries

Reviews

Write a Review

Macroeconomics Questions & Answers

  Fundamental aspect of hybrid course

Discussion represents a fundamental aspect of this hybrid course. As a matter of fact, it is important to interact with your peers and to create new discussions. Please share your comments and points of view about the word "politics"

  How would changes in energy prices

What are the components of GDP, and how does energy consumption enter each of these components? How would changes in energy prices, such as oil price shocks, possibly affect GDP growth? Please explain the related impacts on inflation and unemploym..

  Expenditure multiplier related to the marginal propensity

Suppose the economy has no income taxes or imports. How is the size of the expenditure multiplier related to the marginal propensity to consume? What is the multiplier if the MPC equals 0.25? If the MPC equals 0.50? If the MPC equals 0.90?

  Good and quantity demanded of the good

What is the entire relationship between the price of the good and quantity demanded of the good?

  Find the expected marginal costs

Imagine that you are trying to decide whether to cross a street without using the designated crosswalk at the traffic signal. What are the expected marginal benefits of crossing? The expected marginal costs?

  What can we predict about future inflation

What is the Consumer Expenditure Survey (CE) How has the Survey behaved since the year 2000 What have been the causes of these changes In your response, include a graph of the CE for this period and cite your source.

  How you able to measure benefits of implementing schedule

Describe how you might be able to measure the benefits and costs of implementing the 9/80 schedule described below: Traditionally, employees work 8-hour days for 5 days a week.

  1 disinflation and credibilityassume output is initially

1. disinflation and credibilityassume output is initially at its equilibrium level and inflation is 12. show this on

  Which affects karls consumption of beer

derive Karls demand curve for beer as a function of exogenous variables (ie income, prices) hint draw his indifferece curves and budget constraint and think about what must be true at his optimal bundle.

  Calculate the annual net premium

Calculate the annual net premium. Premium payments may be made monthly, but in this case a service charge of 2.5% is added to the annual net premium.

  Product price elastic or price inelastic

Consider a product that you have purchased recently. If the price of this item increases, how would you adjust your purchases? Is the Demand for this product Price Elastic or Price Inelastic?

  Formulate some key elements of a corporate vision statement

Analyze the differences and similarities between your personal vision statement and the vision statement of the organization you explored. Rate the organizational vision statement in terms of how motivational or inspirational it is or would be to yo..

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd