EBK MICROECONOMICS: PRIVATE AND PUBLIC
16th Edition
ISBN: 8220103612142
Author: Gwartney
Publisher: Cengage Learning US
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Chapter 12, Problem 1CQ
To determine
Explain the statement “the
Expert Solution & Answer
Explanation of Solution
The derived demand is a famous economic concept explains the demand for goods and services is bring about from the demand for an intermediate or other related goods and services. The demand for resources is derived demand means, demand for factors of production (land, labor capital, machinery and so on) is due to there is a demand for goods and services in the market.
Generally employment of resources is negatively related to its
Economics Concept Introduction
Demand: Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.
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Tasks
Exercise 1
Assess the following functions:
1. f(x)= x2+6x+2
2.f '(x)=10x-2x2+5
a. Find the stationary points. (5 marks)
b. Determine whether the stationary point is a maximum or minimum. (5 marks)
c. Draw the corresponding curves (5 marks)
Problem 2:
The sales data over the last 10 years for the Acme Hardware Store are as follows:
2003
$230,000
2008
$526,000
2004
276,000
2009
605,000
2005
328,000
2010
690,000
2006
388,000
2011
779,000
2007
453,000
2012
873,000
1. Calculate the compound growth rate for the period of 2003 to 2012.
2. Based on your answer to part a, forecast sales for both 2013 and 2014.
3. Now calculate the compound growth rate for the period of 2007 to 2012.
1. Based on your answer to part e, forecast sales for both 2013 and 2014.
5. What is the major reason for the differences in your answers to parts b and d? If you were to
make your own projections, what would you forecast? (Drawing a graph is very helpful.)
Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36
Q
Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.
Chapter 12 Solutions
EBK MICROECONOMICS: PRIVATE AND PUBLIC
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