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what is market efficiency?
Assume that all perfectly competitive webpage design companies are selling identical services at $1000 per page. If each shop has a marginal cost curve written as MC =800 + 0.5Q, where Q equals the number of webpages designed each day, what is the profit-maximizing quantity of pages that each company will want to sell each day?
Given the following table, use the matrix method to derive the constant and slope parameters of the sample regression function: Marks = f(Weekly party hours). X (Weekly party hours) 2,4,6,8,10,12,14,16 Y (Marks) 80,77,71,67,66,58,49,36
Estimated the maximum potential sales for each product in the next quarter. Finally, the
accounting department has provided some data showing the profit contributions on each product.
The decision problem is to determine the product mix, that is, to maximise Ram's Furniture
Company's profit for the quarter by choosing production quantities for the chairs, desks and
tables. The table below summarises the parameters of the problems.
Hours per Unit
Department Chairs Desks Tables Hours
Available
Fabrication 4 6 2 1,850
Assembly 3 5 7 2,400
Shipping 3 2 4 1,500
Demand
Potential 360 300 100
Profit $15 $24 $18
What would happen if the profit contribution for chairs reaches $16.00 and
subsequently when it reaches $21.00? Show tabulated results and working
Qx=200-px+2py+.03y where px=10 py=15 y=1000.
Find the PED.
hot dogs are 5 pesos for a package of 10 pieces at the grocery store. at the basketball game they cost 5 each. using the concept of the elasticity of demand, explain why hot dogs cost more at basketball game. answer key
Fill in the blanks:
with the correct information. Suppose you are given the monthly variable cost of a bowling alley and told the cost of leasing the space is $200 a month. The output is the number of lanes that are open. When is the marginal cost minimized?
A production function has the following form Q = 4KL. Price of labor is PL = 8 and price of capital is PK = 4. How many units of labor and capital the firm hires, if it minimizes its costs and its goal is to produce 800 units of output? Calculate total costs.
Natalie entered a raffle recently and never checked her tickets. She has recently learned the exact number of the other unchecked tickets. Based on this information she knows that there is a 40% chance that she has won the raffle prize of $1,600. If she does not win the raffle her wealth will be zero. Natalie has a von Neumann–Morgenstern utility such that she wants to maximize the expected value of √c, where 𝑐 is total wealth.
What is the minimum price for which Natalie would sell her raffle tickets?
Good X is produced in a competitive market using input A. Explain what would happen to the supply of the good X in each of the following situations:
a) The price of input A decrease.
b) An excise tax of $3 is imposed on good X.
c) An ad valorem tax of 7percent is imposed on good X.
