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Daniel Mathews a footballer who is based in Sweden received a fine of $2 500 and a two-match suspension for use of performance-enhancing drugs. Daniel receives a match fee of $5 000 per match from the Sweden Footballers Board, plus additional appearance money of $10 000 per match from Adidas. He also pays $500 per match for comprehensive insurance against injury. In opportunity cost terms, the cost of this incident for Daniel Mathews is:
Michaela spends R10 in the morning on bus fare from her house in Mitchells Park to MANCOSA. In the afternoon the same trip costs R9.50. the fact that the bus fare is more expensive during rush hour and less expensive in the afternoon implies that the demand for the bus ride in the morning is……………………while during the afternoon the demand for the bus is…………………….
Show that the cost function for a firm with the constant returns Cobb-Douglas production function y=Az1αz21−α is given by C(p,y)=yp1αp11−αB , where B is a function of A and α only. Derive the conditional input demands
A monopolistic firm has the following demand functions for each of its products and,
The combined cost function is the maximum joint production function is 40. Find the profit maximizing level of
(i). Output (ii) Price (iii) Profit
Daniel Mathews a footballer who is based in Sweden received a fine of $2 500 and a two-match suspension for use of performance-enhancing drugs. Daniel receives a match fee of $5 000 per match from the Sweden Footballers Board, plus additional appearance money of $10 000 per match from Adidas. He also pays $500 per match for comprehensive insurance against injury. In opportunity cost terms, the cost of this incident for Daniel Mathews is:
Michaela spends R10 in the morning on bus fare from her house in Mitchells Park to MANCOSA. In the afternoon the same trip costs R9.50. the fact that the bus fare is more expensive during rush hour and less expensive in the afternoon implies that the demand for the bus ride in the morning is……………………while during the afternoon the demand for the bus is…………………….
a) less inelastic, more elastic
b) elastic, inelastic
c) unit elastic, inelastic
d) perfectly elastic, perfectly inelastic
Bud and Wise are the only two producers of aniseed beer, a New Age product designed to displace root beer. Bud and Wise are trying to figure out how much of this new beer to produce. They know:
If they both limit production to 10,000 gallons a day, they will make the maximum attainable joint profit of $200,000 a day-$100,000 a day each.
If either firm produces 20,000 gallons a day while the other produces 10,000 a day, the one that produces 20,000 gallons will make an economic profit of $150,000 and the other one will incur an economic loss of $50,000.
If both increase production to 20,000 gallons a day, each firm will make zero economic profit.
Construct a payoff matrix for the game that Bud and Wise must play.
Find the Nash equilibrium of the game that Bud and Wise play.
A crop failure causes the supply of coffee to decline, while at the same time, the demand for coffee increases.
What impact would these events have on the market for coffee?
A firm’s production function is given by the equation f(K,L) = 6K0.5L0.5. The marginal product of labor for this firm is
What are the individual Supply and Market Supply? schedule and the demand curve, and how are they related? Why does the demand curve slope downward?
