Kali is a dot-com entrepreneur who has established a Web site at which people can design and buy a pair ofincredible sunglasses. Kali pays $100 a month for a Web server and Internet connection. The sunglasses that customers design are made to order by another firm, and Kali pays this firm $10 a pair. Kali has no other costs. The table shows the demand schedule for Kali's sunglasses. Do you expect other firms to enter the market and compete with Kali? Price (dollars per pair) 50 40 30 20 10 0 Quantity (pairs per month 0 10 20 30 40 50

Kali is a dot-com entrepreneur who has established a Web site at which people can design and buy a pair ofincredible sunglasses. Kali pays $100 a month for a Web server and Internet connection. The sunglasses that customers design are made to order by another firm, and Kali pays this firm $10 a pair. Kali has no other costs. The table shows the demand schedule for Kali's sunglasses. Do you expect other firms to enter the market and compete with Kali? Price (dollars per pair) 50 40 30 20 10 0 Quantity (pairs per month 0 10 20 30 40 50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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11:22 Fri 10 Dec VPN 9 79% managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. Tandy's Art is the only art studio and workshop in a small remote town, and Tandy's Art is the only employer of artists in the area. The graph below shows the market for artists with the marginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve. Marginal Factor Cost 40 Supply 28 22 20 16 10 Marginal Revenue Product 0 6 12 18 24 32 36 40 80 Quantity of Artists 48 60 16 (a) Identify the profit-maximizing number of artists that Tandy's Art will hire. Explain using the labeling on the graph. (b) Identify the profit-maximizing wage rate that Tandy's Art will pay its artists. Explain using the labeling on the graph. (c) If the wage rate is $10, state whether there will be a shortage or a surplus of…
- 16 (10%) (page 2 of 3)- Google Chrome urses.open.uwi.edu/mod/quiz/attempt.php?attempt3D43724&cmid3D461748&page=D1 Exchange 2020 12015 Mathematical Methods of Economics I | S2 20 Ensure that you show ALL workings. Graphs NOT required. n tyn- A company produces two types of can openers: Model I and Model 2. Each require the use of three machines: A, B and C. Model I requires 2 hours on machine A, 1 hour on machine B and 1 hour on machine C. Model II requires 1 hour on machine A, 2 hours on machine B and 1 hour on machine C.The maximum number of hours available for machine A, B and C are 180, 160 and 100 respectively. The profit on Model I is $4 and Model Il is $6. on Write down the LP model. Identify the coordinates of the extreme points of the feasible region. Paragraph -BIEE W 99+
Preview File Edit View Go Tools Window Help 81% Wed Mar 25 5:09 PM Eco4100MidtermSpring2020.pdf (page 5 of 9) Search Eco4100MidtermSpring2020.. creen Shot -0....01.06 PM pounds of chicken creen Shot -0....02.41 PM K lk 20 10 4 12.5 25 pounds of burger 6) Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. What is the price of chicken? A) $0.80/lb B $1.25/lb C) $4/lb D) $5/lb burger Me heeod tn erhh H d 3. PAGES MAR 25
(61 IM 00 %24 The prisoner's dilemma game may be applicable to criminal prosecution when more than one criminal is involved. O False O True 10:11 PM rch 75°F ENG 12/12/2021 ins prt sc delete home f4 144 pua 114 backspace -> unu lock 7. 6. 5. 6. 4. 081 home enter K. pause ↑ shift pua
(3 points) When sold for $259,000.00, Ferraris have an annual supply of 6758 vehicles and an annual demand of 6691 vehicles. When their price increases to $279,000.00, the annual supply increases to 6913, and the demand decreases to 6010 billion gallons. (a) Assuming that the supply and demand equations are linear, Afind the supply and demand equations. Supply Equation p = Demand Equationp (Note: The equations should be in the form p = mg + b where p denotes the price (in dollars) and q denotes the quantity. The slope and y-intercept should be accurate to two decimal places). (b) Find the Equilibrium price and quantity. Equilibrium price p = Equilibrium quantity q = (Note: The equilibrium price and quantity should be accurate to two decimal places, and the equilibrium price should include a dollar sign).
3. Consider a home energy storage (battery) system that can store up to 2 units of energy. At every time step, there is a demand for energy in the home which is drawn from 0,1,2 units with equal probability independent of the demands in the previous time steps. At every point in time, you have to satisfy the demand either by discharging the needed energy from the battery or purchasing power from the grid (or a combination of the two). You could also choose to purchase power from the grid to charge your battery. The grid energy price is either H(igh) or L(ow) according to a Markov chain (Price moves from H to L with probability p, and from L to H with probability q). (a) Model the decision making as an infinite horizon MDP where the objective is to minimize the discounted cost of energy purchased over an infinite horizon. (b) Write down a policy a of your choosing. Perform two steps of the operator T, for your policy, followed by one step of T..
1.- What is the expected result on total energy consumption (quantity) when there is an increase in energy efficiency? 2.- Explain the gov incentive/price control that causes demand curve to shift back (left) What is resultant market Price & Quantity?
Mary is a corn farmer in Iowa. If she does not irrigate her field, she can produce 120 bushels of corn per acre. If she applies 4 inches of irrigation water, she can produce 140 bushels of corn per acre. The application of 8, 12, and 16 inches of irrigation water can result in 160, 180, and 200 bushels of corn per acre, respectively. Graph the relationship between the amount of water applied and corn yield for Mary. What is the slope?
8. If C= 500 + 0.5Y and I= 400, then equilibrium level of income is:(A) 900. (B) 1,800. (C) 2,500. (D) 4,000.
2. Exercise 8.2 Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $12 million. Bowen owes his local bank $9 million. Last year Bowen sold $11 million worth of cotton. His variable operating costs were $9 million; accounting depreciation was $40,000, although the actual decline in value of Bowen's machinery was $60,000 last year. Bowen paid himself a salary of $50,000, which is not considered part of his variable operating costs. Interest on his bank loan was $400,000. If Bowen worked for another farmer or a local manufacturer, his annual income would be about $30,000. Bowen can invest any funds that would be derived if the farm were sold to earn 10% annually. (Ignore taxes.) What is Bowen's accounting profit? O $1,560,000 O $1,550,000 O $1,220,000.00 O $1,210,000.00 What is Bowen's economic profit? O $1,550,000 O $1,210,000.00 O $1,560,000 O $1,220,000.00
Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below. Month in which student poll was taken Average of students’ responses as MPC March 0.41 June 0.30 September 0.22 December 0.56 What do these MPC’s imply about the students’ thinking over the course of the year? (Enter response here.) What is likely happening in the economy during the same period of time?
13. (Use this information to answer qustion 13 - 16) Suppose a household solves the following two-period consumption-savings problem max u(c₁) + Bu(c2) {C1,C2} s.t. aw Y1 - C1 C2y2 (1+r)a with u(c) = √c where c₁ is consumption at time 1, c2 is consumption at time 2, y₁ is houshold income at time 1, 2 is houshold income at time 2 and w is the initial wealth. Suppose the incomes of the household are $50 in time 1 and $210 in time 2. The initial wealth is $100, the discount factor is 0.975 and interest rate is 5%. Solve for the household's choice of C1. (a) 125.12 (b) 126.58 (c) 175.16 (d) 341.88 14. Now a government wants to introduce income tax in both time 1 and time 2 {1, 2} to finance a construction project that costs $50 in time 1 and another $52.5 in time 2. Which ones of the following are the household intertemporal budget constraints. (a) y1 + 1/2 =C1+ 1+1 Y2 (b) w+y1 + = C₁ + 1+r 1+r (c) wy1T1 + Y2 T2 1+r Y2 1+r = €1 + 12 1+r (d) wy171 + =C1+ 1+r C2 (1+72) 1+r 15. Solve for the…