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Consider the following short run production function: Q=6L2-0.4L3
1. a) Find the value of L that maximizes output
b) Find the value of L that maximizes marginal product
c) Find the value of L that maximizes average product
PROBLEM #5
A ski resort in the White Mountains has conducted market and cost studies, and has determined that the demand and supply for ski-lift tickets at their resort are represented by: Qd=1750 - 5P - 8PR + 2PB; Qs=50 + 20P - 3PE. In these equations, P represents the price of a full-day lift ticket, in dollars per ticket; PR is the price of a ski-rental package; PB is the price of a pint of beer at the local pub in the nearby town; and PE is the price per megawatt hour for the electricity used to run the chair lifts on the ski slopes.
Based on the equations above, determine whether the beer in the local pub is a substitute or complement to skiing. Briefly explain your answer. Suppose the price of a ski-rental package is $20, the price of a pint of beer is $5, and the price of electricity is $150 per megawatt hour. Calculate equilibrium price and quantity of ski-lift tickets.
Now consider the more general relationship between the price of lift tickets and the price of ski-rental packages. Suppose the price of beer remains at $5, and the price of electricity is still $150 per megawatt hour, but that the price of a ski-rental package (PR) is variable. Find an expression for the equilibrium price of a ski-lift ticket as a function of the price of a ski-rental package. Confirm that your general equation is correct by verifying the price you found for a ski-lift ticket when the price of a ski-rental package is $20, above. Show your derivations clearly.
Describe increase/Decrease and change in demand. suppose there is a market for coca-cola. In winters, the demand for coca-cola decreases, will there be a shift or a movement in demand curve? Explain Your Reasons Briefly.
what is an indifference curves? how is an equilibrium achieved in the indifference curves analysis?
A technological advance in the production of automobiles will _____ the _____ automobiles.
a.decrease; supply of
b.decrease; demand for
c.increase; demand for
d.increase; supply of
. MacGuffins have a demand function of QD = 70 – P and a supply function of QS = 2P + 10. Determine the price at equilibrium
The price of a commodity increased from rs40 to rs6. The quantity demanded decreased from 25 units to 15 units. Calculate arc elasticity of demand and own price elasticity of demand. What is the degree of elasticity of demand.
Under what circumstances will the ppc exhibit a convex shape
What is an economic system?
You like the movie “Tumbbad” and want to visit the movie as many times as possible. The total satisfaction derived from watching movie is given in the following table. No of times watch the Movie 1st 2nd 3rd 4th 5th 6th Total Satisfaction 400 700 950 1170 1270 1300 If the cost of watching movie each time is Rs. 220/-, then how many times you will watch theMovie?
