(1) Von-Thünen Model I A coffee shop is located at M (where x=0) and charges marginal cost prices for its coffee (i.e., c-p). Customers walk to the coffee shop to buy coffee and, aside from the purchase price, incur travel cost of (tx²), measured from the shop. The shop's market reach is 2.3 km and t=2. If customers' WTP for the shop's coffee is $12.83 what is the product's price in equilibrium?

Assume the industrial conditions of red pepper production in the market for homogeneous products there are many manufacturers where each manufacturer has a market share (market share) the same, relatively small and can not affect the price of the change strategies carried out by these manufacturers in the market. If it is known that the function the demand is Q = 2000-P, and the total cost of each manufacturer is the same that is, TCi = 100 + 5q2i. Where Q = [2]I qi, where i is the producer of i and i is 1, 2, 3,..., n. Questions: - What is the number of companies in the long term of the competitive marketi perfect for this homogeneous product, where every company has the same market share? - What is the selling price of thi product in market? - Calculate the Herfindahl-Hirschman Index (HHI) of the red pepper producer industry here!

A firm uses the production technology q = (x{ + xP, where a is a constant and 0 # p< 1. (a) Derive the firm's cost function, c(w1,W2,9). (b) Derive the firm's profit, 7(p,w1,w2). (c) Derive the elasticity of scale for this production technology. (d) What restrictions must a satisfy to ensure that the profit function is well-defined? Explain.

You manufacture ceramic lawn ornaments. After several months your accountant tells you that your profit P(n) can be modeled by the function P(n)= -0.002n^2+5.2n-1208 where n is number of ornaments sold each month. A) How many ornaments must you make and sell to break even. B) How many ornaments must you make and sell to maximize profit. C) What is the maximum profit. D) How many ornaments must you make and sell in order to earn a profit of $1657.

Suppose that you can sell as much of a product (in integer units) as you like at $60 per unit. Your marginal cost (MC) for producing the qth unit is given by: MC = 7q This means that each unit costs more to produce than the previous one (e.g., the first unit costs 7*1, the second unit (by itself) costs 7*2, etc.). If fixed costs are $80, what is the optimal integer output level? Please specify your answer as an integer. If fixed costs are $80, what is the profit at the optimal integer output level? Please specify your answer as an integer.

Why Can't We Be Friends? operates a conflict settlement service for distressed couples. If it has no fixed costs and its monthly average variable cost of cases is given by AVC = 250 - 500, the marginal cost at a caseload of 50 attempted reconciliations per month is:

Thranduil company’s market research department is working on the pricing of a product. The field research shows that average demand is expected to be 8000 units at price 50 TL. From this point, each 1 TL change in price will negatively affect demand with a magnitude of 100 units. Fixed and variable costs are confronted for producing the product. According to the information obtained from the financial department, 200,000 TL is the estimate of fixed costs and 20 TL is the estimate of variable costs per unit produced. Assume that all units produced are sold.Which of the following prices is the one that maximizes the company's profit?

Question 5 A manufacturing company produces the quantity q of a product that depends on I units of labour and a capital amount K as given by the equation 3 1 q = 6 (L) ³² (K) ² Labour costs are $10 per labour unit and capital costs are $20 per unit of capital and the total cost budget is $3,000. (a) Find the optimal solution using Lagrange Multipliers. G (b) Demonstrate the following economic principle for the optimal solution found in (a) that The marginal productivity of labour / The marginal productivity of capital = aq = Cost per unit of labour / Cost per unit of capital aq ☆ ƏL Challenge Level (c) Recompute the optimal values for L and K when the budget is increased by $1 and check that this allows for the production of an extra λ units where is the Lagrangian multiplier.