Economics

Suppose that a firm\'s production function is given by Q = L K and that its cost

Suppose that a firm's production function is given by Q = L K and that its costs are given by C = w L + r K, where w = $2 and r = $8. Assuming the firm wants to produce 40,000 uni…

Suppose that a firm\'s production function is q 10L0.5K0.5 Its marginal product

Suppose that a firm's production function is q 10L0.5K0.5 Its marginal product functions are: MPL-5K0.50.5-0.50L MPK" 5L0.5/K0.5-0.50K 84 7 and 42- The cost of a unit of labor, w,…

Suppose that a firm\'s production function is q = 5x0.5 in the short run, where

Suppose that a firm's production function is q = 5x0.5 in the short run, where there are fixed costs of $1,000, and x is the variable input whose cost is $1250 per unit. What is t…

Suppose that a firm\'s production function is: 1211 98- q-10L0·5K0.5 Its margina

Suppose that a firm's production function is: 1211 98- q-10L0·5K0.5 Its marginal product functions are: MPL = 5K0.5/0.5 = 0.5g/L 70- and MPK" 5L0.5/K0.5 = 0.5g/K. The cost of a un…

Suppose that a firms legal staff concludes that an ewproduction process which a

Suppose that a firms legal staff concludes that an ewproduction process which a firm is developing is patentable. Graphically this new information would shift the firms expectedra…

Suppose that a flower nursery benefits from having a butterfly farm located only

Suppose that a flower nursery benefits from having a butterfly farm located only a few miles away, because the presence of the insects greatly improves flower pollination. Lawyers…

Suppose that a gas station plans to begin operation on a vacant parcel of land l

Suppose that a gas station plans to begin operation on a vacant parcel of land located in a residential neighborhood. The extra profit the station will earn at this location compa…

Suppose that a government wants to reduce its economy\'s dependence on coal and

Suppose that a government wants to reduce its economy's dependence on coal and decides as a result to tax coal mining companies $1 per ton for every ton of coal that they mine. Co…

Suppose that a haircut would give Dawn 2000 units of utility and costs her $40,

Suppose that a haircut would give Dawn 2000 units of utility and costs her $40, while a set of acrylic nails costs $25 and yields 1000 units of utility. Most likely Dawn should: A…

Suppose that a hypothetical economy is categorized by the following model: C = 8

Suppose that a hypothetical economy is categorized by the following model: C = 800 + 0.6DI I = 500 G = 75 T = 180 X = 25 IM = 15 where C represents consumption, DI represents disp…

Suppose that a labor economist claims that recipients of economics PhDs gain lit

Suppose that a labor economist claims that recipients of economics PhDs gain little in terms of acquired productive skills from their graduate studies, but instead, the degree sim…

Suppose that a labor economist finds that one of her research subjects has earne

Suppose that a labor economist finds that one of her research subjects has earned significantly higher wages throughout his lifetime than would be predicted by standard measured v…

Suppose that a labor economist finds that one of her research subjects has earne

Suppose that a labor economist finds that one of her research subjects has earned significantly higher wages throughout his lifetime than would be predicted by standard measured v…

Suppose that a large deposit of iron ore (an input in steel production) has rece

Suppose that a large deposit of iron ore (an input in steel production) has recently been discovered which has lowered the price of iron ore. Show (graphically) and explain, how t…

Suppose that a local water company observes that when the price of water rises f

Suppose that a local water company observes that when the price of water rises from $0.10 to $0.12 per gallon, water use decreases from 50,000 to 45,000 gallons. Answer the follow…

Suppose that a market contains 20 firms with the following market shares: 16 fir

Suppose that a market contains 20 firms with the following market shares: 16 firms each has 3% market share . One firm has a 7% market share . One firm has a 10% market share . On…

Suppose that a market is described by the following supply and demand equations:

Suppose that a market is described by the following supply and demand equations: Qs = 2P Qd = 300 – P a. Solve for equilibrium price and quantity. b. Suppose that a tax of T is pl…

Suppose that a market is descrive by the following supply and demand equations:

Suppose that a market is descrive by the following supply and demand equations: Qs=2p and Qd=240-P The equilibrium price in this market is________ and the equilibrium quantity is_…

Suppose that a market with an inelastic demand curve experiences an upward shift

Suppose that a market with an inelastic demand curve experiences an upward shift in the supply curve. Using comparative statics, analyze how the equilibrium price and equilibrium …

Suppose that a market with an inelastic supply curve experiences a shift to the

Suppose that a market with an inelastic supply curve experiences a shift to the right in the demand curve. Using comparative statics, analyze how the equilibrium price and equilib…

Suppose that a medical school provides three outputs--patient care, education, a

Suppose that a medical school provides three outputs--patient care, education, and research--and that the total cost of the school is $100 million per year. If the school produced…

Suppose that a monopolist firm’s demand curve is given by P = 1002y and its marg

Suppose that a monopolist firm’s demand curve is given by P = 1002y and its marginal cost is given by MC(y) = y 2 . Answer the following questions: a. What is the profit-maximizin…

Suppose that a monopolist sells a product to men and women. If the firm sets a s

Suppose that a monopolist sells a product to men and women. If the firm sets a single price, the monopolist would produce 100,000 units and sell them at a price of $5.00 per unit.…

Suppose that a monopolist sells a product to men and women. If the firm sets a s

Suppose that a monopolist sells a product to men and women. If the firm sets a single price, the monopolist would produce 100,000 units and sell them at a price of $5.00 per unit.…

Suppose that a monopolist\'s marginal cost is $10 and the price elasticity of de

Suppose that a monopolist's marginal cost is $10 and the price elasticity of demand is -6. We can conclude that if the monopolist is charging a uniform price for its output, the p…

Suppose that a monopolist\'s market demand is given by P = 100-2Q( one hundred m

Suppose that a monopolist's market demand is given by P = 100-2Q( one hundred minus 2Q) and that marginal cost is given by MC = Q=2. a. Calculate the prot-maximizing monopoly pric…

Suppose that a monopolistic seller of designer handbags faces the following inve

Suppose that a monopolistic seller of designer handbags faces the following inverse demand curve: P= 50 ? 0.4Q. The seller can produce handbags for a constant marginal and average…

Suppose that a monopolistically competitive firm is in long-run equilibrium. The

Suppose that a monopolistically competitive firm is in long-run equilibrium. The firm's demand curve is tangent to its average cost curve at Q = 25. Average cost is minimized at Q…

Suppose that a monopolistically competitive firm must build a production facilit

Suppose that a monopolistically competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC = $24. Also, the firm has co…

Suppose that a monopolistically competitive restaurant is currently serving 240

Suppose that a monopolistically competitive restaurant is currently serving 240 meals per day (the output where MR = MC). At that output level, ATC per meal is $10 and consumers a…

Suppose that a monopolistically competitive restaurant is currently serving 250

Suppose that a monopolistically competitive restaurant is currently serving 250 meals per day (the output where MR = MC). At that output level. ATC per meal is $10 and consumers a…

Suppose that a monopolistically competitive restaurant is currently serving 260

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where MR- MC). At that output level, ATC per meal is $10 and consumers ar…

Suppose that a monopolistically competitive restaurant is currently serving 270

Suppose that a monopolistically competitive restaurant is currently serving 270 meals per day (the output where MR = MC). At that output level, ATC per meal is S10 and consumers a…

Suppose that a monopolistically competitive restaurant is currently serving 280

Suppose that a monopolistically competitive restaurant is currently serving 280 meals per day (the output where MR = MC). At that output level, ATC per meal is $10 and consumers a…

Suppose that a monopoly can price discriminate between two markets: market 1, wh

Suppose that a monopoly can price discriminate between two markets: market 1, where the demand curve is given by q1 = 1-p1 and market 2 where demand is given by q2 = 4-3p2. Assume…

Suppose that a monopoly firm finds that its MR is $50 for the first unit sold ea

Suppose that a monopoly firm finds that its MR is $50 for the first unit sold each day, $49 for the second unit sold each day, $48 for the third unit sold each day, and so on. Fur…

Suppose that a monopoly firm finds that its MR is $50 for the first unit sold ea

Suppose that a monopoly firm finds that its MR is $50 for the first unit sold each day, $49 for the second unit sold each day, $48 for the third unit sold each day, and so on. Fur…

Suppose that a monopoly firm finds that its MR is $72 for the first unit sold ea

Suppose that a monopoly firm finds that its MR is $72 for the first unit sold each day, $71 for the second unit sold each day, $70 for the third unit sold each day, and so on. Fur…

Suppose that a nation has a labor force of 100 people. In January, Amy, Barbara,

Suppose that a nation has a labor force of 100 people. In January, Amy, Barbara, Carine, and Denise are unemployed; in February, those four find jobs, but Evan, Fancesco, George, …

Suppose that a nation has a labor force of 100 people. In January, Amy, Barbara,

Suppose that a nation has a labor force of 100 people. In January, Amy, Barbara, Carine, and Denise are unemployed; in February, those four find jobs, but Evan, Francesco, George,…

Suppose that a new government is elected that wants to keep out the poor. It dec

Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum price that can be charged is $4.00. If the government can enforce that price…

Suppose that a new technique for harvesting lumber more efficiently was discover

Suppose that a new technique for harvesting lumber more efficiently was discovered. i). Illustrate the effect you think this would have on the market for lumber. How will the pric…

Suppose that a paper mill is located on a river. Making paper also produces wast

Suppose that a paper mill is located on a river. Making paper also produces waste, which runs off into the river and pollutes the downstream area. The people who live in the downs…

Suppose that a paper mill “feeds” a downstream box mill. For the downstream mill

Suppose that a paper mill “feeds” a downstream box mill. For the downstream mill, the marginal profitability of producing boxes declines with volume. For example, the first unit o…

Suppose that a particular economy has the following characteristics: s = 0.15 n

Suppose that a particular economy has the following characteristics: s = 0.15 n = 0.02 g = 0.01 d = 0.02 K = 9000 Y = 3000 where s is the savings rate, n is the population growth …

Suppose that a perfectly competitive firm faces a market price (P) $5 per unit,

Suppose that a perfectly competitive firm faces a market price (P) $5 per unit, and at this price the upward-sloping portion of the firms marginal cost curve crosses its marginal …

Suppose that a perfectly competitive firm faces a market price (P) $5 per unit,

Suppose that a perfectly competitive firm faces a market price (P) $5 per unit, and at this price the upward-sloping portion of the firm’s marginal cost curve crosses its marginal…

Suppose that a perfectly competitive firm faces a market price of $7 per unit, a

Suppose that a perfectly competitive firm faces a market price of $7 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal …

Suppose that a perfectly competitive firm faces a market price of $7 per? unit,

Suppose that a perfectly competitive firm faces a market price of $7 per? unit, and at this price the?upward-sloping portion of the? firm's marginal cost curve crosses its margina…

Suppose that a person\'s yearly income is $75,000. Also, suppose that this perso

Suppose that a person's yearly income is $75,000. Also, suppose that this person's money demand function is given by M^d = SY(0.45 - i). This penon's demand for money when the int…