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A. Find the profit maximizing price and output of a perfectly competitive market,
B. Assuming, a firm is monopoly
C. Compare the results
As a group/individual choose a familiar product. Explore the demand for your product.
3 What is your product? (2)
________________________________________
Draw graphs of your product for each scenario accompanied by an explanation:
a) A substitute for your product
Insert graph here
b) A complement for your product
Insert graph here
c) An inferior good in comparison to your product
Insert graph here
d) A change in price for your product (8)
Insert graph here
Consider the following production function.
TPL = 12L2 – 0.8L3
Determine the marginal product function(MPL)
Determine the average product function (APL)
Find the value of L that maximizes TPL
Find the value of L that maximizes APL
Find the value of L that maximizes MPL
how much more or less will a passenger pay if she travels five times in April if demand 6400 and price is 18 and 3 times in july if demand is 2000 and price 40?
The price falls from $10.00 to $9.50, and the quantity demanded rises from 100 units to 110 units. What does total revenue equal at the lower price
The law of supply states that as price increases, ceteris paribus, _____.(1 point)
- supply decreases
- supply decreases
- supply increases
- supply increases
- quantity supplied increases
- quantity supplied increases
- quantity supplied decreases
- quantity supplied decreases
Consider a k-variables linear regression model, i.e.,
Y = X 1β1 + X 2 β2 + ε,
Where, X1 is (N . k1 ) , X 2 is (N . k2 ) and k = k1 + k2 . As you may recall, adding columns to
the X matrix (including additional regressors in the model) gives a positive definite increase in R2.
The adjusted R2 attempts to avoid this phenomenon of ever-increasing R2. Show that the
additional k2 number of variables (regressors) in this model increases R2 if the calculated F-statistic in testing the joint statistical significance of coefficients of these additional
regressors (β2 ) are larger than one.
A firm raised the price of its product from $10 to $15 and as a result its sales fell from 200 units to 150 units. What happened to its average revenue and total revenue.
Gizmo brothers, manufactures two types of hi-tech yo-yo: The Exterminator and the Eliminator. Denoting Exterminator output as Q1 and Eliminator output as Q2, the company has estimated the following demand equation for its yo-yos:
Q1= 10-.2P1 – 0.4Q2
Q2 = 20 -0.5P2 – 2Q1
The total cost equation for producing Exterminators and Eliminators are
TC1 = 4+2Q12
TC2 = 8+6Q22
a) If Gizmo Brothers is a profit-maximizing firm, how much should it charge for Exterminators and Eliminators?
b) What is the profit maximizing level of output for Exterminators and Eliminators?
c) What is Gizmo Brother’s profit?
#340153 on Dec 2023