Question 1: State the maximization problem of the firm, and compute the firm's optimal levels of period-1 investment and period-2 profits. Provide intuition.

Suppose that a monopolist offers two different products with demand functions P1 = 56 – 4q1 P2 48 – 292 The monopolist's joint cost function is C(q1, 92) qỉ + 5q192 + q? %3D

Suppose we have one consumer with a Cobb Douglas utility function for consumption, x, and leisure, R : u(x, R) = a ln a+(1-a) In R. The consumer is endowed with one unit of labor/leisure and there is one firm with a constant-returns to scale technology: a = aL. Determine r(p, w) and R(p, w).

Q8 The theory of the firm is based on the following two key assumptions. a. Firms seek to maximise profits and the firm is a single, consistent decision-making unit. b. Firms seek to maximise revenues and to maximise undistributed profits. c. Firms seek to maximise profit and to distribute the maximum value in dividends. d. Each firm has a highly diversified product and this leads to profit maximisation. e. Firms seek to become as large as possible and they seek to maximise total revenue.

Jared values his entrepreneurial skill at $10,000 annually to run a similar type if business if he had not elected to open his own restaurant. The table summarizes his operations for the past year. Total sales revenue $590,000 Employee wages $120,000 Materials $350,000 Interest on loan $5,000 Utilities $10,000 Rent $25,000 Total explicit costs $510,000 6. What is Jared's accounting profit? 7. Find Jared's total implicit costs. 8. What was Jared's economic profit last year?

Required information Px| 0 ABC MC ATC AVC D K Q Refer to the above graph. To maximize profits, the firm should produce the quantity:

State one potential positive consequence and one potential negative consequence of MOORE'S LAW for a BUSINESS.  Explain CLEARLY how these BUSINESS consequences follow from MOORE'S LAW.

Edward the entrepreneur takes 2 hours to cut a lawn, and he cuts 1,000 lawns per year. He uses solar-powered equipment (truck and mower) that will last forever- and can be sold at any time for $40,000. Edward could earn $11 per hour as a pedicurist. The interest rate is 10 percent. Given his current output level, compute his average cost of cutting lawns. $20 $24 $22 $28 $26