Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help understanding these homework problems from my Econo class Q1. You can buy as many Mariner's tickets as you like at a price

I need help understanding these homework problems from my Econo class

Q1. You can buy as many Mariner's tickets as you like at a price of $11 each. You know that you can sell them according to the following table. How many tickets do you buy

Table below

Number of tickets Selling Price

0 0

1 16

2 30

3 42

4 52

5 60

6 66

7 70

8 72

Q2. You can hire as many workers as you like at a wage of $11 each. You know that they will produce units that generate an income of $2 each. How many workers do you hire?

Number of workers Numbers of units produced Revenue

0 0 $ 0

1 8 $16

2 15 $ 30

3 21 $ 42

4 26 $ 52

5 30 $ 60

6 33 $ 66

7 35 $70

8 36 $ 72

Q3. The demand function of a company is Q= 8.5 - 0.05p and the total cost function TC = 100 + 38Q

What is the optimal output Q*? And the optimal price, optimal total revenue, and the total cost?

Q4. Given that a firm's inverse demand function is p= 100-5Q and total cost is given by C = 550 + 10q what is the firm's profit-maximizing level of output?

a. 10

b. 15

c. 9

d. 8

e. 5

Q5. What is the marginal revenue MR equation for a firm with the inverse demand function P = a = bQ?

a. MR = b-Q

b. MR = a- 2bQ

c. MR = a+ 2Q

d. MR = 2Q

e. MR = 2a+ Q

Q.6. The demand function of a company is Q = 8.5 - 0.05P and the total cost function TC = 100 + 38Q What is the optimal output Q*? Trick: inverse demand function

Q7. KopyKat is a firm that specializes in printing business cards, using the latest laser technology. The manager has estimated that weekly demand can be approximated by P = 25 - 0.001Q, The firm's total cost function is C = 2,500 + 13Q + 0.002Q2 (a) What is the firm's profit maximizing output and price?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mining And The State In Brazilian Development

Authors: Gail D Triner

1st Edition

1317323580, 9781317323587

More Books

Students also viewed these Economics questions