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What price should a firm charge for a package of two shirts given a marginal cost of $4 and an inverse demand function P = 8 - 2Q by the representative consumer?
Determine algebraically the profit-maximizing outputs for the production and marketing divisions of the firm and the optimal transfer price for the intermediate product and the price of the final product.
Generic Brands is expected to earn a profit of $1 million each year forever into the future. If the interest rate is 5%, and there are 20,000 shares of company stock outstanding, how much will investors be willing to pay for a single share of Gene..
The government is considering two alternative types of taxes. The first is a tax on interest income, the second is a tax on labour income. Both are to be imposed at rate t (i.e., t=.20, or 20%). Your job is to help the government understand the im..
a. If the price of capital is $7.50 per unit what is the per unit price of labor b. How many units of labor should the firm use in order to produce 400 units of output at the least cost c. The minimum cost of producing 800 units of output is what
You are the manager of a monopoly, and your demand and cost functions are given by P = 200 - 2Q and C(Q) = 2000 + 3Qsquared, respectively. a. What price-quantity combination maximizes your firm's profits
the manager of Burger Man - a firm that rents a spot to sell burgers at Easy University. Based on estimates provided by a consultant, burger demand (monthly) and cost functions for meals are Q= 2500-250P and C= 500+ 2Q (MC=2), respectively.
A study of costs of electricity generation for a sample of 56 British firms in the 1946-1947 yielded the following long-run cost function: AVC = 1.24 +.0033Q + .0000029Q2 - .000046QZ - .026Z + .00018Z2 Where AVC = average variable cost (i.e., work..
Compute the percentage change n nominal GDP, real GDP, and the GDP deflator n 2009 and 2010 from the percentage year. For each year, identify the variable that does not change
Dr. Izobel Stevens is physician at the Westbury HMO, a New York City based medical facility serving the poor and indigent. Stevens is estimating the cost effectiveness of a preventive maintenance event,
a. Derive the demand and supply curves (qd and qs). b. What is the equilibrium price and quantity c. If P=$160 what will be the forecast of quantity demanded and quantity supplied d. At the price of $160 will there be either a surplus or shortage. Wh..
two people live alone in isolated regions, have the same resources, grow potaotes and chickens, if one devotes resources to growing potatoes they raise 200 lbs a year. if they grow chickens they raise 50 a year. if they apportions some resourcs to ..
You have given the following data about the amount your firm can manufacture per day given the number of workers it hires.
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