4 Round your answers to two digits after the decimal(the nearest 1/100th).The following question consists of a function in one variable. Moreover, the objective function is quadratic. So the first-order condition is as simple as can be,namely linear. As we saw in 1530, this is the easiest possible kind of optimization problem. As such, it is a great setting to practice working with the Envelopetheorem.A firm produces a single commodity (read: the firm operates in a competitive market) and receives p = 35 for each unit sold. The cost of producing K units is8K + 5K? and the tax per unit is 1. The firm wants to maximize its profit.1. Find the firm's profit n as a function of K and express as:T= a · K+b· K².• The coefficient a is equal to• The coefficient b is equal to2. Find the optimal production K* that maximizes profit: K*3. Find the optimal profit a*: 7*4. Next, the price of the commodity p increases. As economists, we are interested in how the profit the firm realizes changes as a result in the change in price ofthe commodity. To assess this, in principal we need to consider the direct effect a change in p has on the profit and the• x effect a change inp has through it's effect on optimal quantity K* the firm produes, i.e,d |dpKdK*+aK\KdpThis calculation, however, can be simplified: The Envelope theorem states that the second term on the right hand side is equal tobecause it is the derivative with regard to al an* x variable. We therefore only need to consider the* x effect of achange in p on the profit. Specifically in the example we are considering here, the change in the profit as p changes can be expressed as:dn*a +b- K +c·K².dpwhereo the coefficient a is equal too the coefficient b is equal too the coefficient c is equal to

Firm is operating under a perfectly competitive market therefore , P = MC & P = 35 (Given…

Round your answers to two digits after the decimal(the nearest 1/100th). The following question consists of a function in one variable. Moreover, the objective function is quadratic. So the first-order condition is as simple as can be, namely linear. As we saw in 1530, this is the easiest possible kind of optimization problem. As such, it is a great setting to practice working with the Envelope theorem. A firm produces a single commodity (read: the firm operates in a competitive market) and receives p = 35 for each unit sold. The cost of producing K units is 8K + 5K² and the tax per unit is 1. The firm wants to maximize its profit. 1. Find the firm's profit n as a function of K and express as: *- a · K+b· K². • The coefficient a is equal to • The coefficient b is equal to

Round your answers to two digits after the decimal(the nearest 1/100th). The following question consists of a function in one variable. Moreover, the objective function is quadratic. So the first-order condition is as simple as can be, namely linear. As we saw in 1530, this is the easiest possible kind of optimization problem. As such, it is a great setting to practice working with the Envelope theorem. A firm produces a single commodity (read: the firm operates in a competitive market) and receives p = 35 for each unit sold. The cost of producing K units is 8K + 5K² and the tax per unit is 1. The firm wants to maximize its profit. 1. Find the firm's profit n as a function of K and express as: *- a · K+b· K². • The coefficient a is equal to • The coefficient b is equal to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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At a price of $14, country 1 will (a) offer for export 9 units of this product. (b) seek to import 9 units of this product. (c) choose not to trade. (d) increase supply. (e) offer for export 18 units of this product
There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed in the attached table. If the tenants have the right to be free of loud music enforced through a property rule, how many bands will play in Rock‐n‐Roll Bar on a Saturday night? A. Zero B. One C. Two D. Three E. It depends on transaction costs
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uestion 3 If you want to minimize interest payments on a loan, you'll need one that has a simple interest rate so that yo John opened an account, and knew exactly how much it would be worth at the end of the year, because it used year. What is simple interest? Oa. Interest only on original amount saved or borrowed Ob. interest on original amount saved, borrowed and other interest earned Oc. a fee paid for the use of someone else's money Od. taxes on the original amount saved or borrowed L A Moving to another question will save this response. →
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ctors) on of es 1. Relationship of data usage and bill Data Usage(GB/month) 0 10 20 30 Bill($/month) 10 30 50 70 A. Draw the graph, placing data usage horizontally(on the X axis) and bill vertically(On the Y axis). B. How much is the monthly fixed fee? C. How much is the charge per GB? D. What is the Equation that describes the relationship, where data usage is denoted by D, and bill by B? E. How much would be the charge for 50 GB use per month?
B. The late Anne Collins had 3 children, Mary, John and Hana who unfortunately all predeceased Anne leaving several Anne's grandchildren and great grandchildren. Unfortunately, Anne died intestate without a will or trust. She is survived by: Mary's daughters Emma and Joan John's son Patrick who has 2 children Joe and Frank; Frank has 1 child Eddy. Hana's daughter Elizabeth is also deceased leaving 2 children Jim and Eva. (i) Please fill in the table taking into consideration that Anne died without a will/trust and therefore the distribution shall be according to the CA intestacy laws (Modified Per Stirpes PC 240). Each Emma and Joan Mary's spouse Each of Patrick's 2 children Joe and Frank Each of Elizabeth's 2 children Jim and Eva Patrick's grandchild Eddy Patrick MPS Ø
There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below. Assume the bar owner has the right to hire as many bands as she likes. Iftransaction costs were $90, split between the bar owner and the tenants, how manybands would play? What would social welfare be? A. Three bands would play and social welfare would be ‐100.B. Two bands would play and social welfare would be 75.C. Two bands would play and social welfare would be ‐15.D. No bands would play and social welfare would be 0.E. Three bands would play and social welfare would be ‐190