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The Blanchard family has 250 acres of land in Louisiana where they grow a rotation of three organic crops: sugarcane, tobacco, and oilseed. Each winter, the Blanchards decide how much land to devote to each crop. At least 400 tons of sugarcane, 520 tons of tobacco, and 360 tons of oilseed are needed to satisfy a futures contract they signed a few months before. They can sell sugarcane, tobacco, and oilseed for $200, $250, and $300 per ton, respectively, but would have to pay a 25% markup on those prices if they needed to buy these same crops after the harvest. The probability of a good planting season is 40% and the corresponding yields for sugarcane, tobacco, and oilseed are 8.4, 6.8, and 5.6 tons per acre, respectively. The probability of a bad season is 60% and the resulting yields would be 5, 3.4, and 2.8 tons per acre, respectively. Formulate a two-stage stochastic optimization model to maximize the Blanchard’s expected profit. How much land should be devoted to each crop to fulfill their contract (even if that means purchasing some of the crops)?
example of Cyclical and Structural Unemployment
What is economics
A movie theater shows films for a community of 10000 people shows films during weekends. Right now, the price per ticket is $17.50. In the past, when they increased or decreased the price per ticket, they discovered that for every dollar (or fraction) that the price was increased or decreased, the attendance decreased or increased proportionally by 200 people. The theater owner pays the Film Distribution Company $10 (incremental cost) in royalties per person who views the film. Can be Hand written or in excel just need to show work. Find
- The willingness-to-pay distribution of the movie goers.
- The average price they would be willing to pay.
- The price per ticket that maximizes revenue.
- Should the theater owner increase or decrease the price per ticket if she wants to maximize contribution?
- Find the consumer surplus if the tickets are priced at the price that maximizes contribution.
investing $17985 on march 1st 2021, i pay .02% per month and the invester wants their money on January , 2024. how much will I give the invester back
2. Assume that the price index (the measure of the economy's price levels in the current time is 1.35.
A. If you are to compare the prices of the current time and the previous time (the previous time being the reference period), how much is the change in the economy's price level?
B. Determine the value of peso at the current time period. Interpret the result.
C. Determine exactly how much (in percentage) the did the value of peso decreased.
Interpret the result.
D. If, instead, the price level falls to 0.80:
D.1 how much is the change in the economy's price level?
D.2 what is the value of the peso at the current time
period? Interpret the result.
D.2 determine exactly how much (in percentage) the did the value of peso change.
Use a graph to show how the addition of lump-sum tax (a tax independent of income)
influences the parameters of the income determination model. Graph the two systems
individually, using solid line of (1) and dashed line for (2).
(1) AE = C + I
C = 100 + 0.6 Y
Io = 40
(2) AE = C + I
C = 100 + 0.6 Yd
Io = 40
Yd = Y – T
T = 50
A local restaurateur who had been running a profitable business for many years
recently purchased a three-way liquor license. This license gives the owner the
legal right to sell beer, wine, and spirits in her restaurant. The cost of obtaining
the three-way license was about #90,000, since only 300 such licenses are
issued by the state. While the license is transferable, only #75,000 is refundable
if the owner chooses not to use the license. After selling alcoholic beverages for
about one year, the restaurateur came to the realization that she was losing
dinner customers and that her profitable restaurant was turning into a noisy,
unprofitable bar. Subsequently, she spent about #8,000 placing advertisements
in various newspapers and restaurant magazines across the state offering to sell
the license for #80,000. After a long wait, she finally received one offer to
purchase her license for #77,000. What is your opinion of the restaurateur’s
decisions? Would you recommend that she accept the #77,000 offer? Why?
What does the Phillips curve signify? How do you reconcile the difference in the shape of the curve in the short run and
the long run?
What are the implications of IS and LM curves? What are the factors on which the position and the slope of IS and LM
curves depend?
