Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Question
Chapter B, Problem 6E
a.
To determine
To evaluate the marginal revenue and marginal cost functions by using the demand functions from exercise 5.
b.
To determine
To evaluate theMarginal revenue equals marginal cost and the economic principle that profits are maximized at the output level where marginal revenue equals marginal cost is illustrated.
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Students have asked these similar questions
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
Question 2: For this problem you will analyze the elasticity of substitution and the
isoquant graphs for two different production functions
F₁(K, L) = 4K + 2L
F₂(K, L) = K²/³ [1/3
(a) Graph the isoquant for F₁(K, L)
=
4K+2L that represents an output of 8. Be
sure to show your work and label the axes clearly
(b) What is the marginal rate of technical substitution (MRTS) for F₁ ?
(c) What is the elasticity of substitution for F₁ ? /
1a) Consider the production function Q = 0 + 6L + 5L2 - .2L3. The range of labor covering Stage II of production is ____ to ____. You can use Excel spreadsheet or otherwise to answer this question.
b) A firm’s production function is Q = 600*L -1.0*L2. The firm is currently employing 83 units of labor. What is the elasticity of production? You can use a excel spreadsheet or otherwise to answer this question
c) A firm’s LRTC = 600Q - .5Q2 + .001Q3. At what level of output does the firm experience minimum efficient scale? Use either Excel Spreadsheet, Excel Solver or Otherwise
Chapter B Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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