e. d. What price will sellers receive (net price) per gallon after the tax? How much revenue will this tax raise for the government? Revenue collected by government is $732. f. How much of the tax burden is borne by buyers? How much is borne by sellers?
Q: D $1.50 $1.25 $0.75 350 De In the above figure, assume that So represents the industry supply curve…
A: The correct Option is the second option that is:- An individual firm will face a horizontal demand…
Q: Home's demand and supply for cars are given by: D = 130 - 30P and S = 10 + 30P, while Foreign's…
A: Home’s demand for cars: D = 130 − 30P Home’s suppl for cars: S = 10 + 30P P is thousands of US$…
Q: A firm faces a production function of twittle-twaps: Q(K,Lp,Ln) = 5*K(2/5)*LP (1/3)*LN(1/5) per…
A: The production function is the mathematical relationship between the output produced and the inputs…
Q: What is a market? Explain the concept of equilibrium. (.
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Demand…
Q: In graph A below shows the market demand and supply in a competitive market, and graph B shows the…
A: Equilibrium Price and Quantity: The cross-section of the demand and supply curve computes the…
Q: 26. Assume the economy is at full employment. Which is the most likely effect of a decrease in…
A: Full employment is referred the be as economic situation in which all available labor resources are…
Q: At what interest rate payable quarterly will payments of Php 500 at the beginning of each 3 months…
A: Given:Quarterly payment (PMT) = Php 500Year (n) = 7Payment frequency = 4Present value (PV) = Php…
Q: Explain what is meant by ‘macroeconomics’ and why some economists think that it is different to…
A: Economics is the social science that learns how individuals and organizations allocate resources to…
Q: Ceteris paribus, when discouraged workers become more hopeful about their job prospects and begin…
A: Discouraged workers are workers who are not looking for the job but are willing to work if offered…
Q: Analyze the cotton t-shirt market if the price of cotton increases. Graph and explain
A: Demand schedule is the tabular representation of quantity demanded at various price levels. Demand…
Q: Allocation 1 Allocation 2 Specialize Trade Post Trade Gains From Trade Superior? Eggs Country A 18 0…
A: Opportunity cost and comparative advantage: The value of alternative opportunities foregone and…
Q: 3. Consider the following classical economy: Desired consumption Desired investment Government…
A: Output can be written as Y=C+I+G+NX Putting the value of Y=900 for equilibrium
Q: Keynes once said, “Look after the unemployment, and the deficit will look after itself”. Explain…
A: "Note: The question has been answered in a generalized manner." Unemployment is the percentage of…
Q: Eren's two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His…
A: Given: U(V, M)=V2M
Q: The employment rate reflects: an increasing number of women in the worforce a…
A: The employment rate is a measure that reflects the percentage of the working-age population (usually…
Q: In a Oaxaca decomposition, the "unexplained" portion of the wage gap is typically thought to…
A: The raw gap refers to a total difference in wages among the men and women (or whatever two groups…
Q: Consider an economy with a private good and public good. The economy consists of two consumers whose…
A: A financial asset or grant made to a company with the goal of providing continued funding for its…
Q: When economists use the term "money," what do they mean? Homework. Unanswered Due Mar 17th, 11:59 PM…
A: Any item that is commonly accepted as payment for goods and services and debt repayment in a certain…
Q: Consider the market for CD players, illustrated in the figure to the right. Suppose there are…
A: Network externalities can be both positive and negative. Network externalities are a sort of…
Q: 1. Business managers are guided in their decisions by consumers' behavior regarding products…
A: ***Since the student has posted multiple questions, hence, the expert is required to solve only the…
Q: The aggregate demand curve shifts to the left when
A: An aggregate demand curve depicts the inverse relationship between the price level and aggregate…
Q: A company's revenue function can be defined as; TR= Price (P) x Quantity Demanded (Q). If the…
A: Total revenue is the product of price and quantity. Profit is the difference between total revenue…
Q: A firm that is hiring labor in a purely competitive labor market and selling its product in a purely…
A: In perfect competition , There exists a large no. of buyers and sellers. The competitive firm…
Q: Charlie has a project for which he had determined a present worth of $56,459. He now has to…
A: The internal rate of return or IRR is a standard used in investment analysis. It is required to…
Q: Match the convergence reason with its respective example. Converging economies have a playbook…
A: Economic convergence refers to the tendency of economies with lower per capita income to grow at a…
Q: 7. The Sylvan Corporation has estimated the price elasticity of demand for synthetic wood sorrel to…
A: 7) Buyers respond to prices in a way such that when the price increases they demand less of the…
Q: Suppose that the world price of oil is $70 per barrel and that the United States can buy all the oil…
A: The demand schedule represents the quantity demanded by consumers at different price levels. The…
Q: c. Given the wage of production workers and the price of twittle-twaps, what is the optimal number…
A: The production function shows the connection between inputs such as land, labor capital, and…
Q: The higher are interest rates, the: Select an answer and submit. For keyboard navigation, use the…
A: Opportunity cost is the value of the next best alternative forgone or sacrificed when making a…
Q: Illustrate the following with supply and demand curves: In March 2015, hogs in the United States…
A: Demand-supply equilibrium: Demand refers to the total demanded quantity for commodities and services…
Q: Two firms (A and B) run separate mining companies in the same forest. Both pollute the river flowing…
A: Release of pollution by the industries is a form of negative externalities. It leads to the…
Q: Year 1 2 Income $10,000 $10,000 Blank 1 Price of Good X $5 $10 QD of Good X 10 units 8 units Using…
A: The midpoint method of calculating price elasticity of demand is a formula used to measure the…
Q: The following table shows the amounts of additional satisfaction (marginal utility) that Ross would…
A: Marginal utility is the extra amount of satisfaction or benefits, a person derives from consuming…
Q: Create a strong argument to the following prompt. Explain how the labor theory of value developed…
A: The labor theory of value is a theory that explains the value of a commodity based on the amount of…
Q: 4. You have developed an innovative new project that is estimated to produce an annual revenue…
A: Annual cash inflows = 15,000 Life of project = 10 Years Cost of capital Year 1-4 = 4% Cost of…
Q: i. State the meaning of points A, B and C as shown in the diagram. ii. Identify a factor whereby the…
A: The production possibility curve is the graphical representation of the best combination of the two…
Q: 18. Normative and positive statements The following table presents statements analyzing policies…
A: positive economics is focused on describing and explaining economic phenomena, while normative…
Q: Explain persuasive writing in your own words? Perhaps recall an online purchase where you were…
A: A call to action is a phrase or sentence that encourages the reader or listener to take a specific…
Q: On April 1, the price of gas at Bob's Corner Station was $3.50 per gallon. On May 1, the price was…
A: The value of a variable that has increased or decreased as a percentage of its initial value is…
Q: 1. If the United States allows a greater quantity of highly skilled immigrants, what will be the…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: b fall.
A: If the supply of money increases, all else equal, the equilibrium interest rate will a) not change…
Q: Hours of free time Final grade 100₁ 84 75 8 Final grade A 15 84 E 16 75 F 17 67 G 18 60 H 19 54…
A: Work-leisure choice model: Individuals are required to choose between how many hours to work and…
Q: How do you derive the formulas for the job finding rate f for workers and the vacancy filling rate q…
A: Vacancy creation refers to the process by which firms decide to create and advertise new job…
Q: An is a market participant who has money to invest during the current time period , and a is one who…
A: Introduction Borrowed funds are referred to as the funds that a business needs to borrow from…
Q: In a business Finance/Budgeting situation, create a budget for month-long vacation trip to Australia…
A: The technique of controlling one's income and expenses in order to meet financial objectives is…
Q: 1. If the price of a movie rental is $4.00, Mary will rent 5 movies in a month. If the price of a…
A: 1. Given information: Initial price of movie rental: $4.00 Initial quantity of movies: 5 Final…
Q: Government spending $480 450 541 Your Answer: Tax revenues Year 1 $405 Year 2 434 Year 3 480 Refer…
A: A budget deficit arises when government expenditures exceed the tax revenue; thus it occur if when…
Q: Squeak eClean produces commercial sanitizer used to clean tanker trucks that haul liquid food…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Topic; Monopoly vs Oligopoly. Argue against the motion that Monopoly is a better marketing structure…
A: A market is a place where goods and services are exchanged between buyers and sellers. It can be a…
Q: You have been asked to perform an economic evaluation of two projects and recommend one of them for…
A: An economic evaluation of the two projects A and B can be done by comparing their Net Present Value…
Problem 3 and second attachment has highlighted question. Thanks
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A local company is planning to manufacture and market a four-slice toaster. For this toaster, the research department’s estimates are aweekly demand of 300 toasters at a price of $25 per toaster and a weekly demand of 400 toasters at a price of $20. The financial department’s estimates are fixed weekly costs of$5,000 and variable costs of $5 per toaster. a) Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b) Using your knowledge from Finite Math, determine the Revenue function in terms of ?. c) Determine the Marginal Revenue at 2 different production levels for example 250 and 500 units. Interpret these results. (HINT: Consider what a positive or negative first derivative implies) d) Assume that the cost function is linear. Use the financial department’s estimates to express the cost function interms of ?. e) Determinethe Marginal costand interpret the…A manufacturer knows that: His TR is given by Revenue = 23Q – Q2 His total cost of production is; Cost = 36 + 2Q + 0.1Q2 Where Q is the weekly production in thousands a) Economists define MR as the rate of change of Total revenue. Derive an expression for Marginal Revenue (MR) b) How do you think Economists’ would define ‘Marginal Cost’? Derive an expression for marginal Cost (MC) c) What output will make marginal Revenue equal Marginal cost?4. Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price-discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. 4.00 3.50 Monopoly Outcome 3.00 ATC 2.50 Profit 2.00 Loss 1.50 MC 1.00 0.50 MR 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of cans of beer) Suppose that BYOB charges $2.75 per can. Your friend Brian says that since BYOB is a…
- A manufacturer knows that: His TR is given by Revenue = 23Q – Q2 /4 His total cost of production is; Cost = 36 + 2Q + 0.1Q2 Where Q is the weekly production in thousands a) Economists define MR as the rate of change of Total revenue. Derive an expression for Marginal Revenue (MR) b) How do you think Economists’ would define ‘Marginal Cost’? Derive an expression for marginal Cost (MC) and at what output will make marginal Revenue equal Marginal cost? c) Find the total profit and the value of Q that maximizes profitD)A manufacturer knows that: His TRis given by Revenue = 23Q-Q %3D His total cost of production is; Cost = 36+ 2Q +0.1Q Where Qis the weekly production in thousands I. Economists define MR as the rate of change of Total revenue. Derive an expression for Marginal Revenue (MR) II. How do you think Economists' would define 'Marginal Cost'? Derive an expression for marginal Cost (MC) III. What output will make marginal Revenue equal Marginal cost? IV. What can you deduce? V. Find the total profit and the value of Q that maximizes profit E The costs of production of the firm are composed of K125 in Fixed cost, variable costs of K36 per unit produced and depreciation charges are given by the expression KO.05Q'. Find thelevel of output which would minimize average cost of production per unit1. The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell in order to earn a profit of $10,000 per month. The price of each television set is $300, the average variable cost is $100, and the fixed costs are $5,000 per month. a. What is the required sales volume for Abner Corporation to earn a profit of $10,000 per month? b. If the corporation were to sell each television set at $350 rather than $300, what would be the required sales volume? c. If the price is $350 but the average variable cost decreased to $85 rather than $100, what would be the required sales volume now?
- A local newspaper currently has 84,000 subscribers at a quarterly charge of $30.Market research has suggested that if the owners raise the price to $32, they wouldlose 5,000 subscribers. Assuming that subscriptions are linearly related to theprice, what price should the newspaper charge for a quarterly subscription tomaximize their revenue?a) Find the cost function (Hint: find slope and use point-slope form to find thecost function) b) Find the revenue function c) Find the maximum revenue d) Find the profit functionShakti Inc. has been granted a patent for its arnica toothache balm. The table to the right shows the demand and the total cost schedule for the firm. What is Shakti's profit minus maximizingoutput? A. 4 units B. 6 units C. 7 units D. 5 units Price per dose (Dollars) Quantity Demanded (Dose) Total Cost of Production (Dollars) $80 0 $80 72 1 82 64 2 88 56 3 100 48 4 124 40 5 164 32 6 208 24 7 268 16 8 340Gater Tools, a profit-maximizing firm, has a patent on a power tool, making it the only producer of that power tool. Thegraph above shows GaterTools' demand, marginal revenue, average total cost, average variable cost, and marginal costcurves.(a) Calculate GaterTools' total revenue if the firm produces the allocatively efficient quantity. Show your work.(b) Starting at a price of $12, if GaterTools were to increase the price by 4%, will the quantity demanded decrease bymore than 4%, less than 4%, or exactly 4%? Explain.(c) At a quantity of 10 units, is GaterTools' marginal product increasing, decreasing, or constant? Explain. (f) Does GaterTools have a dominant strategy? Explain using numbers from the payoff matrix.(g) Identify the Nash equilibrium. Explain why this is a Nash equilibrium using information from the payoff matrix.(h) Suppose HandyBilt makes a credible commitment to GaterTools that if GaterTools maintains its price, then HandyBiltwill pay GaterTools $250. Will this offer…
- For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in thepostal business have increasing returns to scale, then constant returns to scale, andthen decreasing returns to scale. The Royal Mail’s minimum average cost is £2 at 100million deliveries and its minimum marginal cost is £1 at 75 million deliveries.The demand for postage is zero at a price of £10, and demand is 300 milliondeliveries at a price of £0. Marginal revenue is zero at a price of £10 and 150 at aprice of £0.Note: Unless otherwise stated, the numerical answers in this question do not need tobe exact but should correspond to how you have drawn your graph. (a) Draw a large graph showing the Royal Mail’s average cost curve and itsmarginal cost curve. Show how many deliveries would be made, and at whatprice, if Royal Mail operated as a monopoly. Show the Royal Mail’s profit orloss on the graph.For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in thepostal business have increasing returns to scale, then constant returns to scale, andthen decreasing returns to scale. The Royal Mail’s minimum average cost is £2 at 100million deliveries and its minimum marginal cost is £1 at 75 million deliveries.The demand for postage is zero at a price of £10, and demand is 300 milliondeliveries at a price of £0. Marginal revenue is zero at a price of £10 and 150 at aprice of £0.Note: Unless otherwise stated, the numerical answers in this question do not need tobe exact but should correspond to how you have drawn your graph. (a) Draw a large graph showing the Royal Mail’s average cost curve and itsmarginal cost curve. Show how many deliveries would be made, and at whatprice, if Royal Mail operated as a monopoly. Show the Royal Mail’s profit orloss on the graph. (b) The government makes a law restricting the price of postage to £1. Show theeffect of this policy in the…For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in thepostal business have increasing returns to scale, then constant returns to scale, andthen decreasing returns to scale. The Royal Mail’s minimum average cost is £2 at 100million deliveries and its minimum marginal cost is £1 at 75 million deliveries.The demand for postage is zero at a price of £10, and demand is 300 milliondeliveries at a price of £0. Marginal revenue is zero at a price of £10 and 150 at aprice of £0.Note: Unless otherwise stated, the numerical answers in this question do not need tobe exact but should correspond to how you have drawn your graph. New technology changes delivery firms’ technology. Now, the minimumaverage cost is £2 at 1 million deliveries and a minimum marginal cost of £1at 0.75 million deliveries. The government removes all price restrictions andallows free entry. Describe the long-term outcome for this market, using twographs, one at the firm-level and one at the…