8. Un agente determina su demanda de consumo y ocio (u oferta de trabajo) a partir del siguiente problema: máx{c,0} U(c) + V (0) s.ap.cw.(L — 0) (U' > 0, U" < 0, V' > 0, V" < 0) donde: c es el consumo, el ocio, p el precio del bien de consumo, w el salario y L la dotación total de tiempo disponible (por lo tanto, (L-0). tiempo destinado al trabajo). La restricción indica que el gasto en consumo debe ser igual al ingreso. a) A partir de las condiciones de primer orden del problema indique cómo cambian la demanda de consumo y de ocio ante un aumento del salario. b) Estudie cómo cambia la utilidad en el máximo ante un aumento del salario.

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?

Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?

Why will firms in most markets be located at or close to the bottom of the long-run avenge cost me?

HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?

Urban transit systems, especially those with rail systems, typically experience significant economies of scale in operation. Consider the transit system data in Table 11.4. Note that the quantity is in millions of riders.

Suppose that the market price increases to 6, as Table 8.14 shows. What would happen to the profit-maximizing output level?

How is intellectual property different from other property?

How does fixed cost affect marginal cost? Why is this relationship important?

Continuing from Exercise 7.1, the films factory sits on land owned by the firm that it could rent for 30,000 per year. What was the films economic profit last year?