Quality control. An assembly plant produces 40 outboard motors, including 7 that are defective. The quality control department selects 10 at random (from the 40 produced) for testing and will shut down the plant for troubleshooting if 1 or more in the sample are found to be defective. What is the probability that the plant will be shut down?
Quality control. An assembly plant produces 40 outboard motors, including 7 that are defective. The quality control department selects 10 at random (from the 40 produced) for testing and will shut down the plant for troubleshooting if 1 or more in the sample are found to be defective. What is the probability that the plant will be shut down?
Quality control. An assembly plant produces
40
outboard motors, including
7
that are defective. The quality control department selects
10
at random (from the
40
produced) for testing and will shut down the plant for troubleshooting if
1
or more in the sample are found to be defective. What is the probability that the plant will be shut down?
Firm Alpha operates in a perfectly competitive market in a constant-cost industry and is earning negative economic profit.
a. How does Firm Alpha determine its profit-maximizing quantity of output? Explain.
b. Draw correctly labeled side-by-side graphs for Firm Alpha and the market it operates in. Label the axes and all of the following:
i. Market price (PE) and market quantity (QE)
ii. The firm's quantity of output (Qe)
iii. The firm's average total cost (ATC)
c. Completely shade the area of the firm's total cost.
d. Identify whether the following increase, decrease, or remain constant as the market moves to long-run equilibrium:
i. Market equilibrium quantity
ii. Market equilibrium price
e. Assume the product that Firm Alpha produces has a negative externality. Draw the marginal social cost (MSC) on the market graph from part (b).
f. Will the unregulated market produce more or less than the socially optimal quantity?
g. Label the socially optimal quantity (Qso) for the market on your…
Goods A, B, and C are related goods, each operating in a perfectly competitive market.
a. As the price of Good A increases from $8 to $10, its quantity demanded falls from 200 units to 160 units. Calculate the price elasticity of demand for this range.
b. Good A is an input for Good B. Illustrate the effect of the price change from part (a) on a fully labeled supply and demand graph for Good B. Label the equilibrium price(s) and quantity or quantities. Use arrows to indicate any shifts.
c. On your graph from (b), shade the consumer surplus lost in the market for Good B as a result of the change in part (a).
d. The equilibrium price for Good C is $2, and the equilibrium quantity is 60 units. The cross-price elasticity of Good C with Good A is -3.
i. Are Good C and Good A normal goods, inferior goods, complementary goods, or substitute goods?
ii. Calculate the new equilibrium quantity of Good C after a 25% price increase for Good A.
Let a = (-4, 5, 4) and 6 = (1,0, -1).
Find the angle between the vector
1) The exact angle is cos
2) The approximation in radians is
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