Assume that you want to decide whether Country A or Country B to live. You have only information about cumulative percentage of income distribution functions of x² + x for country A and x² + x for country B. A) Which country do you prefer and B) Prove your decision numerically, graphically, and with respect to 1 12 15 why relevant economics theory

Assume that you want to decide whether Country A or Country B to live. You have only information about cumulative percentage of income distribution functions of x² + x for country A and x² + x for country B. A) Which country do you prefer and B) Prove your decision numerically, graphically, and with respect to 1 12 15 why relevant economics theory

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The marginal revenue function for a manufacturer's is a of form (a)/(e^(q)+b) where a and b are constants.

A)Derive the demand function.

B)Analyze the features of function elements of a and b.

2. Assume that you want to decide whether Country A or Country B to live. You have only
information about cumulative percentage of income distribution functions of x2 +
15
-x for country A and x2 +x for country B. A) Which country do you prefer and
15
12
why
B) Prove your decision numerically, graphically, and with respect to
relevant economics theory

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The demand function for a certain product is determined by the fact that the product of the price and the quantity demanded equals 8000. The product currently sells for $2.20 per unit. Suppose manufacturing costs are increasing over time at a rate of 18% and the company plans to increase the price p at this rate as well. Find the rate of change of demand over time. Find the demand function represented in this problem where p is the price of the product and q is the quantity demanded for the product. (Type an equation.)
A firm produces two substitute goods . Their demand curves and total cost function are given below : P1 = 130 - 4Q1-Q 2 P2 = 160-2Q1-5Q2 TC = 2Q1 +2Q1Q2 + 4Q 2 ( a ) Determine the profit maximizing outputs of both goods . ( Restrict your answers to 2 decimal points ) ( b ) Find the price elasticity of demand . ( c ) Evaluate the second order " Hessian " required for profit to be maximized .
Suppose your product sells for $1.20 per unit. The total cost of producing x units is C(x) = 50 + 0.20x + .001x^2 dollars. a.) Find the marginal revenue and marginal profit functions b.) Find the marginal profit when x = 400 c.) What is the approximate profit from selling the 401st unit? d.) Find the value of x for which the marginal profit is zero.
Demand function is given by Q=84-2P and cost function is C(q)=25+2q+q2 1) What are the qualitative features of the costs of this cost function? i.e. average, marginal, variable, properties, and what are the key prices – shut price, breakeven price, revenue maximizing and profit maximizing price? 2) Using this cost structure and demand - how many firms are likely to operate in the long run (note: that in the long run firms tend to operate close to minimum average cost)?