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a. What is the formula for measuring the price elasticity of supply? Es = (Click to select V] b. Suppose the price of apples goes up from $20 to $25 a box. In direct response, Goldsboro Farms supplies 1,400 boxes of apples instead of 1,000 boxes. Compute the coefficient of price elasticity (midpoints approach) for Goldsboro's supply. Instructions: Round your answer to two decimal places. Es = c. Is its supply elastic, or is it inelastic? Supply Is |(Click to select VYou are a newspaper publisher. You are in the middle of a one year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labour obligations of $1,250,000 per month that you can't get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.1 per paper. a. If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the average fixed cost per paper and to the marginal cost per paper? Instructions: Round your answers to two decimal places. Average fixed cost per paper _Click to select v] from $ per paper to $ per paper. Marginal cost per paper (Click to select v] b. What happens to the minimum amount that you must charge to break even on these costs? Instructions: Round your answers to two decimal places. The amount Click to select ) from $ per paper to $ per paper.A purely competitive wheat farmer can sell any wheat he grows for $25 per bushel. His five hectares of land show diminishing returns, because some are better suited for wheat production than others. The first hectare can produce 1000 bushels of wheat, the second hectare 900, the third 800, and so on. Fill in the table given below to answer the following questions. How many bushels will each of the farmer's five hectares produce? How much revenue will each hectare generate? What are the TR and MR for each hectare? That That Hectare 's Hectare's Hectare : Yield Revenue TR MR na na $ $ W N H S S S S $ If the marginal cost of planting and harvesting an hectare is $20,000 per hectare for each of the five hectares, how many hectares should the farmer plant and harvest? hectaresAssume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. a. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. Output TC MC ATC 0,600 165,000 S 0.55 100,600 215,000 1.05 150,600 252,500 1.68 200,600 355,500 2.40 b. Is this a decreasing-cost industry? (Click to select v] . c. Suppose that the market price for a bottle of vitamins is $1.68 and that at that price the total market quantity demanded is 286,140,000 bottles. How many firms will there be in this industry? firm(s). d. Suppose that, instead, the market quantity demanded at a price of $1.68 is only 150,600. How many firms do you expect there to be in this industry? firm(s). c. Review your answers to parts D, c and d. Does the level of demand determine this industry's market structure? (Click to select vSuppose that the most popular car dealer in your area sells 4 percent of all vehicles. Instructions: Enter your answers as whole numbers. a. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car dealers in your area? b. In that same situation, what would the four-firm concentration ratio be? percent
