EP ECON.TODAY:MACRO VIEW-MYECONLAB W/TX
EP ECON.TODAY:MACRO VIEW-MYECONLAB W/TX
19th Edition
ISBN: 9780134481234
Author: Miller
Publisher: PEARSON CO
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Chapter 24, Problem 5P
To determine

A monopolist’s maximized rate of economic profits is $5,000 per week.Its weekly output is 500 units, and at this output rate, the firm’s marginal cost is $15 per unit. The price at which it sells each unit is $40 per unit. At these profit and output rates, what are the firm’s average total cost and marginal revenues?

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1. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate fund, and the third is a (riskless) T-bill money market fund that yields a rate of 8%. The probability distributions of the risky funds have the following characteristics: Standard Deviation (%) Expected return (%) Stock fund (Rs) 20 30 Bond fund (RB) 12 15 The correlation between the fund returns is .10.
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