Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 13, Problem 5IP
(a)
To determine
Relationship between
(b)
To determine
The long-run impact of constant cost industry in a
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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.
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 13 Solutions
Microeconomics
Ch. 13.1 - Prob. 1QCh. 13.1 - Prob. 2QCh. 13.1 - Prob. 3QCh. 13.1 - Prob. 4QCh. 13.1 - Prob. 5QCh. 13.1 - Prob. 6QCh. 13.1 - Prob. 7QCh. 13.1 - Prob. 8QCh. 13.1 - Prob. 9QCh. 13.1 - Prob. 10Q
Ch. 13 - Prob. 1QECh. 13 - Prob. 2QECh. 13 - Prob. 3QECh. 13 - Prob. 4QECh. 13 - Prob. 5QECh. 13 - Prob. 6QECh. 13 - Prob. 7QECh. 13 - Prob. 8QECh. 13 - Prob. 9QECh. 13 - Prob. 10QECh. 13 - Prob. 11QECh. 13 - Prob. 12QECh. 13 - Prob. 13QECh. 13 - Prob. 14QECh. 13 - Prob. 15QECh. 13 - Prob. 16QECh. 13 - Prob. 17QECh. 13 - Prob. 18QECh. 13 - Prob. 19QECh. 13 - Prob. 20QECh. 13 - Prob. 1QAPCh. 13 - Prob. 2QAPCh. 13 - Prob. 3QAPCh. 13 - Prob. 4QAPCh. 13 - Prob. 5QAPCh. 13 - Prob. 1IPCh. 13 - Prob. 2IPCh. 13 - Prob. 3IPCh. 13 - Prob. 4IPCh. 13 - Prob. 5IP
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- Problem 4 Office Enterprises (OE) produces a line of metal office file cabinets. The company's economist, having investigated a large number of past data, has established the following equation of demand for these cabinets: Q=10,000+6013-100P+50C Q=Annual number of cabinets sold B = Index of nonresidential construction P = Average price per cabinet charged by OE C=Average price per cabinet charged by OE's closest competitor It is expected that next year's nonresidential construction index will stand at 160, OE's average price will be $40, and the competitor's average price will be $35. 1. Forecast next year's sales. 2. What will be the effect if the competitor lowers its price to 832? If it raises its price to $36? 3. What will happen if OE reacts to the decrease mentioned in part b by lowering its price to $37? 4. If the index forecast was wrong, and it turns out to be only 140 next year, what will be the effect on OE's sales? If not, what does it measure?arrow_forwardName: Problem 1: Managerial Economics, Assignment 5 April 20, 2025 If the sales of your company have grown from $500,000 five years ago to $1,050,150 this year, what is the compound growth rate? If you expect your sales to grow at a rate of 10 percent for the next five years, what should they be five years from now?arrow_forward1. In this question, assume all dollar units are real dollars in billions. For example, $100 means $100 billion. Argentina thinks it can find $105 of domestic investment projects with a marginal product of capital (MPK) equal to 10% (each $1 invested in year 0 pays off $0.10 in every later year). Assume a world real interest rate r*is 5%, and initial external wealth W (W in year -1) is 0. a. You find that the formula on the lecture slide: > r*, which means that a country will ΔΟ AK take on investment projects as long as the marginal product of capital (MPK) is at least as high as the real interest rate. Using this formula, answer if Argentina should conduct the project. b. If the projects are not done, GDP = Q = C = $200 in all years. Compute the present value of Q and C. c. If Argentina conducts the projects (investing $105), what is the present value of Q and C? d. If Argentina conducts the projects, what is the present value of C? Is Argentina better off with the investment?arrow_forward
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