Question
1-The table below represents the output/revenue and cost structure for a local flu shots clinic. The market is perfectly competitive, and the market price of
1-The table below represents the output/revenue and cost structure for a local flu shots clinic. The market is perfectly competitive, and the market price of a flu shot is $25.Total costs include all opportunity costs.
(1) (2) (3) (4) (5) (6)
Output(Flu Shots) Total Cost Total Revenue Total Economic Profit Marginal Revenue Marginal Cost
0 20
1 42
2 61
3 78
4 94
5 112
6 133
7 156
8 181
9 210
10 243
11 280
a) Calculate the total revenue, total economic profit, marginal revenue and marginal cost for the flu shots clinic.
b) Based on marginal analysis, what is the profit-maximizing rate of output for flu shots clinic?Please explain.
c) Draw a diagram depicting the marginal revenue and marginal cost curves for this flu shots clinic and illustrate the determination of its profit-maximizing output rate.
2- Currently, the price index used to calculate the inflation rate is equal to 114.80. The general expectation throughout the economy is that next year its value will be 118.83. The current nominal interest rate is 6.62 percent. What is the real interest rate? Please round to two decimal places
3- In 2017, the cost of a market basket of goods was $12,740.00. In 2018, the cost of the same market basket of goods was $13,313.30.Calculate the price index for 2018 if 2017 is the base year with the price index formula.
4- The real interest rate is 2.3 percent, and the nominal interest rate is 5.4 percent. What is the anticipated rate of inflation?
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