1. Consider an example of the Baumol Model concerning the separation of ownership and control in the organisation of the firm. The firm in question is an oligopoly. The manager seeks to maximise total revenue (TR) from sales, under the profit constraint imposed by the external owners, G = 500. The firm faces an inverse demand function of the following form: p = 100-2q, and the total cost function c(q) = 20g. a) What is the optimal choice of output by the manager? Does it satisfy the profit constraint? b) If the profit constraint is changed to G =$800, what happens to the manager's choice? c) Now, the external owners further change the profit constraint to = $1000. If the manager in fact has control over the cost function, what cost level should be achieved for satisfying the new profit constraint? d) What else can the manger do in the face of the new profit constraint?

Felicity is studying economics and political science. She can read 30 pages of political science per hour but only 5 pages of economics per hour. This week she has a 50 -page assignment in economics and a 150 -page assignment in political science. Because of sorority rush, she cannot devote more than 10 hours to studying these subjects this week. She realizes she cannot complete all of her assignments but is determined to complete at least 30 pages of her economics reading. Draw a graph with pages of economics on the horizontal axis and pages of political science on the vertical axis. On this graph, show the possibilities that are consistent with the constraints that Felicity has imposed on berself, i.e, show her choice set. (She is NOT allowed to read abead in either subject.) Label key points on your graph with their numerical values.   Belinda loves chocolate and always thinks that more is better than less. Belinda thinks that a few piano lessons would be worse than none at all, but…

please help with #4

questions in images: