Problem V Note: Unexplained answers will NOT be graded An economist has estimated the demand equation of a certain produ

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Problem V Note Unexplained Answers Will Not Be Graded An Economist Has Estimated The Demand Equation Of A Certain Produ 1 (16.88 KiB) Viewed 11 times

Problem V Note Unexplained Answers Will Not Be Graded An Economist Has Estimated The Demand Equation Of A Certain Produ 2 (24.54 KiB) Viewed 11 times

Problem V Note Unexplained Answers Will Not Be Graded An Economist Has Estimated The Demand Equation Of A Certain Produ 3 (25.32 KiB) Viewed 11 times

Problem V Note: Unexplained answers will NOT be graded An economist has estimated the demand equation of a certain product as Q-100-5P where P is the price unit and Q is the quantity demanded (in thousands) per year 1.Calculate and interpret the own price elasticity of demand of the product when its price goes from $10 to $15 per unit. 2. Calculate the own price elasticity when price is P-$30. Is demand elastic, unit-elastic or inelastic at price P-5307 Will you raise or lower price to increase revenue? 3. Determine the total consumer value when price is P-$30. 30 points 4. Suppose the inverse demand function for a monopolist's product is given by P-270-2.50 and the total cost function is TC-500-300-3502 so that its marginal cost is MC-30-70 4.a Determine the marginal revenue as a function of Q 4.b Determine the profit-maximizing price and quantity. 4.c. Determine the maximum profits For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)

Problem II Note: Unexplained answers will NOT be graded Two firms A and B are competing in a Cournot duopoly. The reaction function of firm A is given by 0-45- represent the quantity of output produced by fimm A and firm B respectively. 2-30--0, where and )- 1. If firm A decides to produce 50 units, how many units will firm B produce? 2. If firm B decides to produce 40 units, how many units will firm A produce? 3. What quantity of output does ach firm produce in the Cournot equilibrium? 4. Suppose the market inverse demand is P150-2(0,+Q)- 1.a What will be the market price P in the Cournot equilibrium? 4.b Determine the price charged in this market in the Cournot equilibrium. Le Determine the revenue generated by each firm in the Cournot equilibrium. For the toolbar, press ALT+F 10 (PC) or ALT-FN+F10 (Mac) Paragraph Open Sanssa. V x²x₂¶¶ B 8 IVS FE V 10pt - !!! V i11 and the reaction function of firm B is given by V AVA V I. 19 F

Note: Unexplained answers will NOT be graded Assame you are the manager of a firm producing a certain product X. The following schedule shows the total production per week of product X. Additionally, assume each unit of product X sells for $15 per unit, workers can be hired in a competitive labor market for $110 per week, and each unit of capital costs $100 per week Labor (1) Capital (K) Quantity (0) 0 4 1 4 2 3 4 5 6 7 8 9 10 11 12 13 14 15 4 4 4 4 4 4 4 4 4 4 4 4 4 4 0 10 0980399E252525 63 118 162 171 179 187 eLearning Help 194 Based on the information above, answer the following questions. Principle of profit-maximization inpLUSARS To maximize profins, a manager should se inputs at levels at which the marginal benefit equals the marginal cost More specifically, when the cost of each additional unit of lahor is the manager should continue to employ labor sp to the point where VMPI w in the range of diminishing marginal product 1. What's the definition of short-ree in economics? 2. isine the profit maximization innut usage principle