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Assume the following values for Figures 5.4a and 5.4b. Q1=20 bags. Q2=15 bags. Q3=27 bags. The market equilibrium price is $45 per beg. The price at a is $85 per bag. The price at c is $5 a bag. The price at f is $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area=1/2 XBase X Height to answer the following question.
what is the value of the dead weight loss when output level Q2 is being produced? what is the total surplus when output level Q2 is being produced?
$4,000 were deposited at time 0 in an account that pays an interest of 10% compounded annually. how much should be withdrawn at the end of period 2 to have $4,000 at the end of period 4 available in the account
As head of the planning division of Eastern Motors, your job is to determine where to locate a new plant. The only inputs used in your cars are steel and labor and the production function is Cobb{Douglas where f(S;L) = S^0.5L^0.5
you have $750,000 in an IRA (individual ritirement account) at the time you retire. You have the options of investing this money in two funds. Fund A pays 2.9% annually and fund B 7.9% annually. How should you divide your money between Fund A and ..
a) What is the price elasticity of demand for HP printers b) What is the cross-price elasticity with respect to commodity X Give an example of what commodity X might be. c) What is the cross-price elasticity with respect to commodity Z
The balance sheet of a bank follows. Suppose that the reserve requirement is 3 percent on the f rst $30 million of checkable deposits and 10 percent on checkable deposits in excess of $30 million. (Amounts on the balance sheet are in millions of d..
Let's consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita always consume equal amounts of rice and beans. In 2010, the price of beans was $1, and the price of rice w..
The manager of the aerospace division of central Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms.Her most optimistic estimate(a price not expected to be exceeded more than 10 percent of..
The best level of output for a monopolist in the short run is 500 units and is MR=MC. At this point Q=500, P= $11 and ATC= $8, so that the monopolist earns a profit of $3/per unit and a total profit of $1,500. Suppose that the AFC of the monopolis..
A fully equipped facility can be leased at a cost of $35,000 for the year. Additional projected costs are $15,000 for overhead, and $5 per automobile for materials and supplies. Full detail automobile cleaning would be priced at $25.
A bank in a medium sized midwestern city, Firm X, currently charges $1 per transaction at its ATM's. To determine whether to raise price, the bank managers experimented with a number of higher prices(in 25-cen increments)
Monopoly manager has the demand and cost functiones as P=200-2Q and C(q)=2000+3Q2 1- calculate the maximum profits 2- what price-quantity combination maximizes the profits 3- at the profit-maximizing price-quantity combination, what is the demand ela..
Unit Sales Price Personal Advertising Selling Expenses 132 $74 $1,140 203 74 1,400 217 55 1,160 255 53 1,210 252 64 1,490 239 70 1,460 152 75 1,200 197 58 1,020 230 65 1,390 154 61 1,040 As a first step in the analysis, the company ran simple regr..
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