5. Answer the following questions: Qty Price TC TFC TVC TR MC MR 0 8 1 9 2 10 11 4 B 13 19 27 7 8 37 (a) Fill the above table. (b) Calculate profit for each quantity. (c) How much should the firm produce to maximize profit? (d) Graph MC and MR on the same Y-axis with Q on the X-axis. (e) At what quantity do these curves cross? How does this relate to your answer to part (a)? (f) Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium? 6. Read the article, "When Hospitals merge to save money, Patients often pay more" and discuss the trade off between monopoly created to establish monopoly power and synergy. 7. Watch this commercial We Believe: The Best Men Can Be Now read the article, "Gillette Ad With a #MeToo Edge Attracts Support and Outrage - The New York Times" attached with this Problem Set. (a) What is your take on the Gillette "toxic masculinity" advertisement? How do you interpret and understand the ad? What part of the ad was most memorable or affecting?Dic COlliCAT Of econometric analysis. (1marks) ) The following is a general linear regression model: Yi = Bixn + Bexz + ... ..........+ Boxm + er for 1 = 1, 2, 3,......... .. Y, is the i-th observation on the dependent variable Y X, is the i-th observation on the explanatory variables XI, X2.......Xn By are the unknown parameters to be estimated and ei is thye random error term Giving reasons for your answers state the type of data utilized in the specified (3marks) Represent thye model in Matrix form (3marks) Use the specified model to explain the assumptions of OLS method (10 mark1. Define the limit of a function by using the concepts of existence and neighborhoods. 2-a) Find: lim (1 - x3) xa1 1-x 2-b) Find lim 2+1 x a co (x + 1) 3. Find the price elasticity of the following nonlinear demand function: Q = ap-b Where Q is quantity demanded, p is the price of its own. (Show your work. This means that no work no credit.) 4. . Find the derivative of the quotient of the following U and V functions: Y = U / V, where U = X and V = 2X + 3 5. Find (1) the different quotient and derivative when tax rate increases from 15% to 20% and (2) the maximum tax revenuebased on the following quadratic tax revenue function: R = 200t - 200+2 6. Find (i) the marginal revenue, (ii) the marginal cost, and (iii) marginal profit of the following functions: TR = 41.50 - 1.102 TC = 150 + 10Q -0.502+ 0.02034. Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch. Here is their willingness to pay for each film: Jesse Ryan Sandy Lusia First Film 5 3 2 Second Film 4 2 Third Film 5 3 1 Fourth Film 2 0 Fifth Film 3 1 0 (a) Within the dorm room, is the showing of a movie a public good? Why or why not? (b) If it costs $8 to rent a movie, how many movies should the roommates rent to maximize total surplus? (c) If they choose the optimal number from part (b) and then split the cost of renting the movies equally, how much surplus does each person obtain from watching the movies? (d) Is there any way to split the cost to ensure that everyone benefits? What practical problems does this solution raise? DEPARTMENT OF ECONOMICS SPRING 2019 CALIFORNIA STATE UNIVERSITY SAN BERNARDINO BOON 200 INSTRUCTOR: DHRUV KHURANA PSET S
