1.Find the firm's demand for inputs (as a function of output and the input prices) 2. Find the cost function of the firm. 3. For w1= 1 and w2= 1, find the firm's supply
Q: The expected real interest rate on bond will be less than the realized real interest rate if a…
A: Real interest rate doesn't include inflation. It is calculated by subtracting the inflation rate…
Q: For a country's economy as a whole, consumption is a linear function of its national income as…
A: Consumption is a linear function of its national income. i.e., C = Ca + MPC * (Y) Where C is the…
Q: Two ready-to-eat breakfast cereal manufacturers, Lots of Sugar and Buckets of Goo, face combined…
A: Profit is the difference between total revenue and total cost for a given time period in business…
Q: According to the textbook, which of the following statements is (are) correct? (x) As new firms…
A: Monopolistic competition is a mxiture of perfect competition and monopoly. This means there are many…
Q: The table below represents the demand for Widgets, Inc., which has a monopoly in the sale of…
A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping other…
Q: When wealth increases, the supply of loanable funds demanded for loanable funds decreases; increases…
A: Loanable fund market consists of supply and demand of loanable funds. The supply of loanable fund…
Q: In this question we will combine a very simplified model of an externality that has long-lasting…
A: An externality is a type of cost/benefit that is borne by the individuals who are not directly…
Q: Draw a graph that models a positive externality in consumption (label and clearly explain graph)…
A: An externality in consumption illustrates the situation of a market failure. Market failure refers…
Q: 1) What are some of the problems that result when a government prints money rather than raises taxes…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A publishing house sells two books, Mopey Dick (a book about a private detective from the backwoods…
A: Each producer seeks to maximize its profits. In order to do that, they choose to produce a quantity…
Q: For the games on this page, find all pure-strategy Subgame Perfect equilibria. 6.4 w(4) 2,2 6,2 8,8…
A: To determine the Nash equilibrium which is subgame perfect, we will use the extensive form…
Q: please provide explanation.
A: Total cost is the cost of producing all the goods. Slope of TC increases when there is an increase…
Q: Goldenrod Bank's assets consist of $5600 in reserves and $14800 in bonds. In terms of liabilities,…
A: Reserve are the part of deposit that is kept by the bank. Open market operation is used by the fed…
Q: Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm…
A: A firm faces two types of costs fixed and variable. Fixed costs are independent of the output…
Q: In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30…
A: Simple interest is a fast and simple method for determining out how much interest will be charged on…
Q: Timothy is trying to achieve the optimum combination of bags of peanuts and bags of popcorn he…
A: A rational consumer will consume where MU/$ of one good is equal to the MU/$ of other good. This…
Q: + Q of Workers 0 1 2 3 4 A Bakery specializes in making bread. It has fixed costs associated with…
A: Fixed Cost remains same at all levels of output. Variable Cost varies as the output changes Total…
Q: Draw and label both graphs and show the economy in a recession. Use the money market graph to show…
A:
Q: According to "Freightened: The Real Price of Shipping," a solution to the problems with the shipping…
A: Frightened: The Real Price of Shipping is the hidden cost of the shipping industry.
Q: Consider the monopolistically competitive market structure, which has some features of a competitive…
A: Competitive market describes a market where there are many buyers and sellers and where no one buyer…
Q: A monopoly's inverse demand function is p=100-Q+ 2 10A-A Q where Q is its quantity, p is its price,…
A: The interaction by which businesses and enterprises decide techniques to create more gains with…
Q: The four diagrams below illustrate changes in the demand for yen and the supply of yen. To the right…
A: The law of supply and demand combines two fundamental economic ideas that describe how price changes…
Q: The countries of Sanaton and Microtania each produce two goods: Airplanes and Computers. The table…
A: Opportunity cost: When a country picks an option then it has to foregone other options. And the…
Q: What is fiat money and how do you feel about it? What sets the value of fiat money? How is…
A: Any item that is widely accepted as the usual payment for goods and services as well as the…
Q: Please choose two of the question threads to answer. 1) Screening and Imperfect Information…
A: Since you have posted multiple questions, we will answer the first two questions for you. If you…
Q: The table below shows the marginal cost for three firms to clean up units of pollution. Marginal…
A: Here we are given the marginal cost of cleaning the pollution for 3 firms. Here firms faces choice…
Q: Calculate the income tax for a single person who has $81,396 of taxable income using the table below…
A: The amount of money earned after taxes is referred to as taxable income. Taxable income is the part…
Q: Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly…
A: Total revenue refers to the product of price and quantity . Profits are maximized at the point where…
Q: A firm's production function is Q = 6L² - 0.2L³ Where L denotes the size of the workforce. Find the…
A: The marginal product of labor is the increase in output caused by the addition of a new unit of…
Q: Suppose a monopolistically competitive firm has a marginal cost of $2 and a marginal revenue of $8.…
A: A Monopolistic Competitive firm maximixzes profit by producing output at a level where Marginal…
Q: The cost of a depreciable asset is equal to: a. purchase cost + costs attributable to put the asset…
A: The cost of purchasing and having a depreciable asset is the purchase price of the asset and the…
Q: A company bought equipment worth $53,000 and paid $1,500 for freight and delivery charges to the…
A: Depreciation is the normal wear and tear of assets over the life of assets. The sinking fund…
Q: Sol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of…
A: Note: There are multiple sub parts. Hence, we shall answer only the first three for you. If you seek…
Q: What is the marginal utility per dollar spent on the 6th strawberry? Which of the combinations of…
A: Utility shows the satisfaction. MU is the marginal utility. MU is calculated as the change in…
Q: Price level LRAS a Yc Yf Yb AS₂2 AD₁ AS₁ AD₂ Real GDP per year Refer to the figure above. If the…
A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. When…
Q: The demand schedule for the lobster market is linear. The equilibrium quantity of lobster is 7,363…
A: Equilibrium is a where the demand curve intersects the supply curve. Consumer surplus is the area…
Q: What is targedy of commons?
A: Consumers are selfish in the economy and act towards maximising their own utility. They act in a way…
Q: Which industry or industries below might operate in a monopolistically competitive market? a. a…
A: Key features of Monopolistic Competition are as follows: There are a large number of buyers and…
Q: A company purchases a new filtration system by borrowing the $30,000 purchase price. The loan is to…
A: Loan Amount = 30000 Interest rate = 12% Duration of loan = 4 years Life of System = 9 years…
Q: A firm has the long-run cost function C(q)-4q² + 256. In the long run, it will supply a positive…
A: In long run, the competitive firm makes normal profit i.e. zero economic profit. Economic profit…
Q: Consider an economy with the following information: S-40+.10 Yd IM = 20+.20*Yd T = 60+.25*Y I = 150…
A: Spending multiplier shows the impact of an initial level of government spending on the income level…
Q: A man paid 10% down payment of P200,000 for a house and lot and agreed to pay the 90% balance on…
A:
Q: . How much is the savings of the people of the country if the national income is 400. e. Make a…
A: When the Y = 0 C = 60 S = Y - C This is the autonomous amount of consumption and at this…
Q: Graph shows the cost and revenue information for Shitotsu the monopolist. What are the levels of…
A: A monopolistic market is a theoretical condition that defines a market where only one firm may offer…
Q: Suppose that Saudi Arabia produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week.…
A: The exchange or trade of goods and services between different nations is referred to as…
Q: in relation to measuring the performance of organizational units, please explain the 5 center types…
A: When compared to the expected outputs, an organization's actual output or outcomes are considered to…
Q: A routine item has a profit impact, supply risk. O High profit impact, high supply risk. O Low…
A: Check below mentation step for answer
Q: What factors are responsible for unit product costs that differ from other global markets? Justify…
A: Production is the process of converting inputs into valuable outputs, that have some market value.…
Q: Pam is rich and at this high income level, her demand for good X is independent of income and given…
A: CV, or compensating variation, is the adpating in income that returns the consumer to the original…
Q: A firm has some market power and so can choose to change its price. An analyst employed by the firm…
A: Market power is defined as a company's degree of influence over market price determination, either…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 13) You begin to work at a factory that produces Aguardiente (Firewater, a type of alcoholic beverage), the function of production its represented by the technology: Q(L, K, Z) = L³K+zł Where with offers of input perfectly elastic A) Salary w is the price of labor L. B) Interest r is the price of capital K. C) Rent q is the price of drinkable alcohol Z. Calculate The function of demand for each input The function of offer for the Firewater The function of total costs for the Firewater The maximum benefit.13) You begin to work at a factory that produces Aguardiente (Firewater, a type of alcoholic beverage), the function of production its represented by the technology: Q(L, K, Z) = L³ K+z! Where with offers of input perfectly elastic A) Salary w is the price of labor L. B) Interest r is the price of capital K. C) Rent q is the price of drinkable alcohol Z. Calculate The function of demand for each input The function of offer for the Firewater The function of total costs for the Firewater The maximum benefit.A firm has a linear demand function for its product. When the price of the product isSh.220, the quantity demanded is 40 units. When the price increases to Sh.240, thequantity demanded becomes 30 units. In addition, the firm’s marginal cost function isgiven by:MC = 40q – 2q2 + 2Fixed cost = Sh.5 millionWhere q = quantity demanded, MC = marginal cost (Sh. million)Evaluate the level of output that maximizes profits.
- 8. A firm's total cost function is given by TC = 3Q; +2Q,Q, + 7Q: Where Q, and Q. denotethe number of it ems of goods 1 and 2, respect ively that are produced. Using the substitution met hod, find the values of Q, and Q. which minimize costs if the firm is committed to producing 40 goods of eit her type in total.6. Each of the 10 firms has the production function q = √KL. The wage is 5 and the rent on capital is 10. Assume we are in the long run, so firms can vary both factors. Write an expression for one firm's cost minimization problem. Use whichever method you prefer to minimize cost and derive an expression for one firm's total cost: TC (9₁) c. Compute one firm's marginal cost and derive the inverse supply curve for one firm and the inverse supply curve for the market. What is the elasticity of supply? a. b.1. Let a firm’s cost function be c(y1, y2) = F + αy1y2 + y21 + y22, where α is some constant.a) What restriction on α is required to guarantee that this cost function exhibits economies ofscope?b) What restriction on α is required to guarantee that this cost function exhibits cost complementarities in both goods? Note that you’ll need to verify cost complementarities for y1 andy2.2. Given the industry demand function X(p) = 100 − 2p, consider the following scenarios:• The market is a perfectly competitive market. Assume there are identical firms with marginalcost of 12 in this perfectly competitive market.• The market is dominated by one monopolist with a marginal cost of 12. This monopolist isable to achieve 1st degree pricing.• The market is dominated by one monopolist with a marginal cost of 12, but the monopolistis able to achieve only 2nd degree pricing. Assume the menu offers only 2 choices:(Q∗1 = 30, p∗1 = 35), and (Q∗2 = 60, p∗2 = 20).• The market is dominated by one monopolist…
- Prove it! 2. If the demand function for products A and B is in the order Pa = 36 - 3Qa and Pb = 40 - 5Qb and the common cost function is TC = Qa' + 2QaQb + 3Qb². With the above information, then calculate: a. Production values A and B at the maximum or minimum profit levels. b. The maximum or minimum profit value Did the profit reach its maximum or minimum value? Prove it c.1. Suppose that the output sells for $5 and the input sells for $4. Fill in the blanks in the following table. |X input Y output VMP AVP 10 50 25 75 40 80 50 85 2. Suppose that the production function is given by y = 2x0.5 The price of x is $3 and the price of y is $4. Derive the corresponding VMP and AVP functions. What is MFC? Solve for the profit-maximizing level for input use x.Given the input-output matrix below, find the output matrix if final demand changes to 500 for water, 180 for electric power, and 800 for agriculture. Industry Electric Power Industry: Water Electric Power Agriculture Other Water 200 100 300 400 The output matrix is X= (Round to two decimal places as needed.) 480 120 240 360 Agriculture Final Demand 180 240 120 60 290 140 600
- What is the elasticity of substitution for the production function f(K, L) = K12 + L2? O a. o = - O b. o = O c. 6 = 1 O d. o = 2 O e. o = 4 Clear my choice A firm's cost function is C(q) = 2000 + 10q + 5g2. If the firm is a price-taker in a market that is in long-run equilibrium, what quantity does the firm sell? O a. q = 5 O b. q = 10 O c. q = 20 O d. q = 50 Clear my choice3. A firm has a production function given by 1 1 A) y = 4x³x² ; 1 1 B) y = 3x4x² ; a) What are the factor demand functions? b) What are the conditional factor demand functions? c) What is the cost function? d) What is the supply function? 1 1 C) y = 5x³x2; 11 D) y = 12xx².A company manufacturing laundry sinks has fixed costs of $100 per day but has totalcosts of $2,500 per day when producing 15 sinks. The company has a daily demand functionof q = 360 − p, where q is the number if laundry sinks demanded and p is te price ofa laundry sink. ) If production increases continuously, what is likely to be the average cost per sink? How many laundry sinks will the company need to produce in order to maximise it′s profits? What is the maximum profit?