1. A consumer consumes two kinds of goods, namely X and Y. The total satisfaction (TU) obtained in consuming both kinds of goods is shown in the equation; (Unit of money in thousands of dollars).TU = 10X + 24Y - 0.5X2 - 0.5Y2TU is the total satisfaction in consuming goods X and YX is the number of items X consumedY is the number of items Y consumedThe price of item X is known to be $ 2, the price of item Y is $ 6 and the budget available to buy item X and item Y is $ 44.Question:a. Determine how many goods X and the number of goods Y must be consumed so that the consumer gets maximum total satisfaction. Determine the total satisfaction that can be obtained from consuming item X and item Y.b. If the price of item X drops from $ 2 to $ 1, determine the quantity of item X and the number of items Y must consume to obtain maximum total satisfaction. Determine the total satisfaction that can be obtained from the consumption of item X and item Y. 2. A producer has a total cost function: TC = Q2 + 2Q + 66The demand function is: Q = 10 - 0.2 PQuestion:a. Determine the average revenue (AR), marginal revenue (MR) and marginal cost (MC) functions.b. What are the outputs and prices that maximize profits?c. What is the maximum profit? 3. If an industry is formed by six companies. Four companies have sales of $ 10 each, and two companies have sales of $ 5 each.a. What is the concentration ratio of four companies for this industry? and what does it mean?b. What is the Herfindahl-Hirschman index for this industry?c. Explain the differences that occur from calculations with concentrations of 4 companies compared to calculations with HHI? 4. The known cost function for a company is C (Q) = 100 + Q2. If the company sells its output in a perfectly competitive market and other companies in the industry sell its output at $ 10, at what level of output should the company produce to maximize profits or minimize losses? What is the profit or loss level if the company makes an optimal decision? Please explain it thoroughly, Thankyou so much in advance!
1. A consumer consumes two kinds of goods, namely X and Y. The total satisfaction (TU) obtained in consuming both kinds of goods is shown in the equation; (Unit of money in thousands of dollars).
TU = 10X + 24Y - 0.5X2 - 0.5Y2
TU is the total satisfaction in consuming goods X and Y
X is the number of items X consumed
Y is the number of items Y consumed
The
Question:
a. Determine how many goods X and the number of goods Y must be consumed so that the consumer gets maximum total satisfaction. Determine the total satisfaction that can be obtained from consuming item X and item Y.
b. If the price of item X drops from $ 2 to $ 1, determine the quantity of item X and the number of items Y must consume to obtain maximum total satisfaction. Determine the total satisfaction that can be obtained from the consumption of item X and item Y.
2. A producer has a total cost function: TC = Q2 + 2Q + 66
The demand function is: Q = 10 - 0.2 P
Question:
a. Determine the average revenue (AR), marginal revenue (MR) and marginal cost (MC) functions.
b. What are the outputs and prices that maximize profits?
c. What is the maximum profit?
3. If an industry is formed by six companies. Four companies have sales of $ 10 each, and two companies have sales of $ 5 each.
a. What is the concentration ratio of four companies for this industry? and what does it mean?
b. What is the Herfindahl-Hirschman index for this industry?
c. Explain the differences that occur from calculations with concentrations of 4 companies compared to calculations with HHI?
4. The known cost function for a company is C (Q) = 100 + Q2. If the company sells its output in a
Please explain it thoroughly, Thankyou so much in advance!
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