Homework Answers
The 100th unit is produced for $20 and sold at $25 . So the marginal revenue is greater than marginal cost . So Acme should produce more units of Y .
As quantity of production rises marginal cost rises . It rises and meets marginal revenue at a point of output . At this point optimal is reached . When MR = MC , this is profit maximization point .
So they should produce more than 100 units of good Y .
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7. (5 points) Acmes marginal cost for producing the 100 unit of good Y is $20....
1. Katherine advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides...
1. Katherine advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to $6 a dozen and sells 30 dozen. What is the elasticity of demand? Assuming that the elasticity of demand is constant, how many would she sell if the price were $8 a box? 2. Acmes marginal cost for producing the 100th unit of good Y is $20. Acme can sell good Y for $25....
3. (2 points) The marginal cost of producing q units of a certain commodity is C'(q)...
3. (2 points) The marginal cost of producing q units of a certain commodity is C'(q) = 1.592 – 6q+7 dollars per unit. How much does it cost to produce 20 units of commodity, if if the total cost of producing 6 units is $100?
Suppose the government is producing a public good. If the marginal benefit of the last unit...
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74. If a perfectly competitive firm’s marginal cost of producing and selling the 100th unit of...
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he external marginal cost of producing coal is MCexternal = 25Q while the internal marginal cost...
he external marginal cost of producing coal is MCexternal = 25Q while the internal marginal cost is MCinternal = 20Q. The inverse demand is given by P = 500 - 5Q. If the government taxed output at $100 per unit,what would a competitive industry produce? Select one: a. 16. b. 10. c. 20. d. 24 e. 14.
If a monopoly charges $2.00 and its marginal cost of producing the good is $1.50, what...
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Assume that in country A, the unit labor requirement for producing good X is 100 hours,...
Assume that in country A, the unit labor requirement for producing good X is 100 hours, and the unit labor requirement for good Y is 20 hours. Meanwhile in country B, the unit labor requirement for producing good X is 80 hours and the unit labor requirement for good Y is 40 hours. Answer the following: Explain which country has an absolute advantage in each good. Explain which country has a comparative advantage in each good. Under the Theory of...
Assume that in country A, the unit labor requirement for producing good X is 100 hours,...
Assume that in country A, the unit labor requirement for producing good X is 100 hours, and the unit labor requirement for good Y is 20 hours. Meanwhile in country B, the unit labor requirement for producing good X is 80 hours and the unit labor requirement for good Y is 40 hours. Answer the following: Explain which country has an absolute advantage in each good. Explain which country has a comparative advantage in each good. Under the Theory of...
5. (15 points) A firm with market power sells its product for $9/unit, and its marginal cost is M...
5. (15 points) A firm with market power sells its product for $9/unit, and its marginal cost is MC per unit. (7 pts)(a) What is this firm's Lerner Index? $6 (8 pts)(b) Beginning with the way we write marginal revenue in terms of market price, show mathematically how we can obtain the formula for the Lerner Index. Explain what range of values the LI can take, and which value indicates more market power
5. (15 points) A firm with market...
1. With given resources and technology, a country can produce either 100 million cars or 50...
1. With given resources and technology, a country can produce either 100 million cars or 50 million tons of paper. What is the opportunity cost of producing one ton of paper? a.) 500,000 cars b.) 100 million cars c.) 2 million cars d.) None 2. With its given resources and technology, an economy can produce either 100 units of good Y or 50 units of good X. For each of the following combinations of goods indicate whether the combination is...
3. (2 points) The marginal cost of producing q units of a certain commodity is C'(q) = 1.592 – 6q+7 dollars per unit. How much does it cost to produce 20 units of commodity, if if the total cost of producing 6 units is $100?
5. (15 points) A firm with market power sells its product for $9/unit, and its marginal cost is MC per unit. (7 pts)(a) What is this firm's Lerner Index? $6 (8 pts)(b) Beginning with the way we write marginal revenue in terms of market price, show mathematically how we can obtain the formula for the Lerner Index. Explain what range of values the LI can take, and which value indicates more market power
5. (15 points) A firm with market...
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