Search & Filtering
Pete, in problem 6, wins a lottery and has more than enough money to satisfy his desires for rock concerts and opera. He decides that he would like to attend a total of 7 concerts each month. How many rock concerts and how many operas does he now attend?
Online learning aids cuts the marginal cost of educating a student to a2,000 a year. The marginal private benefit is the same as that in problem 7. The external benefit from education increases to a4,000 per student per year. a With no government involvement and if the schools are competitive, how many students are enrolled and what is the tuition? b If the government provides the efficient amount of education, how many school places does it offer and what is the tuition? c Compare the outcomes in problem 8 with those in problem 7. Explain the differences.
suppose that flying a 70 seat cost $7000. this simply means that the average cost of each seat is $100. this economically means that the airline should not sell a ticket for less than $100. if however, the plane is about to take off with 10 empty seats and stand by passengers are waiting at the gate willing to pay $70. instead of the plane taking off with 10 empty seat, the airline,allows the stand by passengers to fill up the plane at $70 and were set to take off. kindly apply principles of economics to explain the scenario
How to disbursed the income and losses among the cooperative member?
1. Suppose that the firm operates in a perfectly competitive market. The market price of its product is 4 Birr. The firm estimates its cost of production with the following cost function:
TC=500+20q-5q2+0.33q3
a. What level of output should the firm produce to maximize its profit?
b. Determine the level of profit at equilibrium.
c. What minimum price is required by the firm to stay in the market?
2. Consider the following information for a particular economy.
- Total population=60 million
- Total labour force=40 million
- Number of employed=30 million.
Natural rate of unemployment=12%
a. Find the total unemployment rate.
b. Calculate the cyclical unemployment.
In a duopoly market, two firms produce the identical products, the cost function of firm 1 is: C1=20q1, the cost function of firm 2 is: C2=20q2 , the market demand function is: P=500-2Q , here Q = q1+q2
In a Bertrand model, the two firms set their price simultaneously, assume both firms do not have production capacity limits, and there is no collusion. What is the market equilibrium price and quantity?
If the two firms decide to form a Cartel, i.e. they want to maximize the profit of the whole industry, and then split the production and profit evenly. What is the market price? What is the industry’s total quantity produced? What is the quantity produced and profit of each firm?
Suppose that the SAC curve function of a firm is given by TC = 4Q³+2Q²+3Q²+Q+20
A. Find the expression of TFC and TVC
B. Derive the expression of AFC,AVC,AC and MC
C. Find the level of out put that minimize MC and AVC
D. Find the minimum value of MC and AVC
price elasticity of a product is -0.8.if the firm raises price of the product,what happened to its revenue
ABC Company
Balance Sheet
December 31, 20x3
ASSETS
Current assets:
Cash Br. 10, 000
Account receivable 52,500
Merchandise inventory 48, 000
Unexpired insurance 1, 800 Br.112, 300
Plant assets:
Equipment, fixture and other Br.37, 000
Accumulated depreciation 12, 800 24, 200
Total assets Br.136,500
LIABILITIES AND OWNERS’ EQUITY
Liabilities:
Accounts payable Br.16, 800
Accrued wages and commissions payable 4, 250 Br.21, 050
Capital:
Owners’ equity 115,450
Total liabilities and owners’ equity Br.136, 500
InInstructions:
2) Using the budget data given above and the schedules you have prepared, construct the fofollowing pro forma financial statements
a. Income statement for the first quarter of the year.
b. Cash budget including receipts, payments, and effect of financing
ABC Company
Balance Sheet
December 31, 20x3
ASSETS
Current assets:
Cash Br. 10, 000
Account receivable 52,500
Merchandise inventory 48, 000
Unexpired insurance 1, 800 Br.112, 300
Plant assets:
Equipment, fixture and other Br.37, 000
Accumulated depreciation 12, 800 24, 200
Total assets Br.136,500
LIABILITIES AND OWNERS’ EQUITY
Liabilities:
Accounts payable Br.16, 800
Accrued wages and commissions payable 4, 250 Br.21, 050
Capital:
Owners’ equity 115,450
Total liabilities and owners’ equity Br.136, 500
InInstructions:
1) Using the data given above, prepare the following detailed schedules for the first quarter of the year
a) Sales budget
b) Cash collection budget
c) Purchase budget
d) Disbursement for purchases
e) Operating expenses budget
f) Disbursement for operating expenses
