1.A company has a profit function given by:

Profit = (22.85 - c)x - 11585,

where x represents the number of units being sold and c is the cost of producing the good. The company breaks even after selling 10,000 units. What are the per-unit costs?

2.Happy Planet drinks price change as the quantity sold changes. In particular p=19-0.005x. The total cost to produce the drinks are $5 per drink. Their production factory costs $1903 per month. What is the profit maximum?

3.If a firms total revenue and total cost functions are given respectively by TR(x)=39x and TC(x)=25x+164, then find the profit generated by selling 276 units.

4.List the methods used to measure national income

5.Explain the differences of inflationary and deflationary gaps

6.What are the components of aggregate demand

7.Is there any work done in game theory for interdependent industries?

8.What are the effects of deficient demand

9.Janet Smith deposits $1,000 of her cash holdings into her checking account at First Federal Bank.

The reserve requirement oils 20% ad the bank has no excess reserves. (The money multiplier is 5)

What is the maximum amount of money First Federal can initially loan out? Explain or show how you determined this amount.

10.Company supply = 800 hand knit sweaters(Q)

Selling price = $150

Costs:

Mortgage = $1200 per month (4 weeks)

Utilities = $500 per month average

Taxes & Permits = $200 monthly payment

Materials = $20 per sweater (yarn, needed, thread, buttons)

Wages = $10 per hour regular shift; $15 per hour overtime (only use for #9)

Employee Benefit = $50 per worker per month (insurance, etc.)

Production Data:

- 50 full time employees

- all 50 employees work 40 hours every week (4 weeks)

- one sweater can be competed with 10 hours of labor

For the following questions I got only #1 right. I got $120,000. The rest I either got wrong or did not understand.

What is the expectedtotal revenueassuming all 800 sweaters sell?