New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
intermediate microeconomics

Microeconomic Theory Basic Principles And Extension 11th Edition Walter Nicholson, Christopher M. Snyder - Solutions

19.2 On the island of Pago Pago there are 2 lakes and 20 anglers. Each angler can fish on either lake and keep the average catch on his particular lake. On Lake x, the total number of fish caught is given by Fx ¼ 10lx ' 1 2l 2x, where lx is the number of people fishing on the lake. For Lake y, the
19.1 A firm in a perfectly competitive industry has patented a new process for making widgets. The new process lowers the firm’s average cost, meaning that this firm alone (although still a price taker) can earn real economic profits in the long run.a. If the market price is $20 per widget and
18.12 Team effort Increasing the size of a team that creates a joint product may dull incentives, as this problem will illustrate.11 Suppose n partners together produce a revenue of R ¼ e1 þ+++þ en; here ei is partner i’s effort, which costs him cðeiÞ ¼ e2 i =2 to exert.a. Compute the
18.11 Increasing competition in an auction A painting is auctioned to n bidders, each with a private value for the painting that is uniformly distributed between 0 and 1.a. Compute the equilibrium bidding strategy in a first-price sealed-bid auction. Compute the seller’s expected revenue in this
18.10 Diagrams with three types Suppose the agent can be one of three types rather than just two as in the chapter.a. Return to the monopolist’s problem of computing the optimal nonlinear price. Represent the first best in a schematic diagram by modifying Figure 18.4. Do the same for the second
18.9 Doctor-patient relationship Consider the principal-agent relationship between a patient and doctor. Suppose that the patient’s utility function is given by UP (m, x), where m denotes medical care (whose quantity is determined by the doctor) and x denotes other consumption goods.The patient
18.8 Consider the following simple model of a common values auction. Two buyers each obtain a private signal about the value of an object. The signal can be either high (H) or low (L) with equal probability. If both obtain signal H, the object is worth 1;otherwise, it is worth 0.a. What is the
18.7 Suppose 100 cars will be offered on the used-car market. Let 50 of them be good cars, each worth $10,000 to a buyer, and let 50 be lemons, each worth only $2,000.a. Compute a buyer’s maximum willingness to pay for a car if he or she cannot observe the car’s quality.b. Suppose that there
18.6 Consider the same setup as in Problem 18.5, but assume that insurance is offered by competitive insurers.a. Ignore the issue of whether consumers’ insurance decisions are rational for now and simply assume that the equal numbers of lefties and righties both purchase full insurance whatever
18.5 Suppose that left-handed people are more prone to injury than right-handed people. Lefties have an 80 percent chance of suffering an injury leading to a $1,000 loss (in terms of medical expenses and the monetary equivalent of pain and suffering)but righties have only a 20 percent chance of
18.4 Suppose there is a 50–50 chance that an individual with logarithmic utility from wealth and with a current wealth of $20,000 will suffer a loss of $10,000 from a car accident. Insurance is competitively provided at actuarially fair rates.a. Compute the outcome if the individual buys full
18.3 Return to the nonlinear pricing problem facing the monopoly coffee shop in Example 18.4, but now suppose the proportion of high demanders increases to 2/3 and the proportion of low demanders decreases to 1/3. What is the optimal menu in the second-best situation? How does the menu compare to
18.2 Solve for the optimal linear price per ounce of coffee that the coffee shop would charge in Example 18.4. How does the shop’s profit compare to when it uses nonlinear prices? Hint: Your first step should be to compute each type’s demand at a linear price p?
18.1 A personal-injury lawyer works as an agent for his injured plaintiff. The expected award from the trial (taking into account the plaintiff ’s probability of prevailing and the damage award if she prevails) is l, where l is the lawyer’s effort. Effort costs the lawyer l 2/2.a. What is the
17.12 Hyperbolic discounting The notion that people might be ‘‘shortsighted’’ was formalized by David Laibson in ‘‘Golden Eggs and Hyperbolic Discounting’’ (Quarterly Journal of Economics, May 1997, pp. 443–77). In this paper the author hypothesizes that individuals maximize an
17.11 Renewable timber economics The calculations in Problem 17.4 assume there is no difference between the decisions to cut a single tree and to manage a woodlot. But managing a woodlot also involves replanting, which should be explicitly modeled. To do so, assume a lot owner is considering
17.10 Monopoly and natural resource prices Suppose that a firm is the sole owner of a stock of a natural resource.a. How should the analysis of the maximization of the discounted profits from selling this resource (Equation 17.58) be modified to take this fact into account?b. Suppose that the
17.9 Precautionary saving and prudence The Query to Example 17.2 asks how uncertainty about the future might affect a person’s savings decisions. In this problem we explore this question more fully. All of our analysis is based on the simple two-period model in Example 17.1.a. To simplify
17.8 Capital gains taxation Suppose an individual has W dollars to allocate between consumption this period (c0) and consumption next period (c1) and that the interest rate is given by r.a. Graph the individual’s initial equilibrium and indicate the total value of current-period savings (W !
17.7 Suppose that a perfect substitute for crude oil will be discovered in 15 years and that the price of this substitute will be the equivalent of an oil price of $125 per barrel. Suppose the current marginal extraction cost for oil is $7 per barrel. Assume also that the real interest rate is 5
17.6 A high-pressure life insurance salesman was heard to make the following argument: ‘‘At your age a $100,000 whole life policy is a much better buy than a similar term policy. Under a whole life policy you’ll have to pay $2,000 per year for the first four years but nothing more for the
17.5 This problem focuses on the interaction of the corporate profits tax with firms’ investment decisions.a. Suppose (contrary to fact) that profits were defined for tax purposes as what we have called pure economic profits. How would a tax on such profits affect investment decisions?b. In fact,
17.4 As in Example 17.3, suppose trees are produced by applying 1 unit of labor at time 0. The value of the wood contained in a tree is given at any time t by f(t). If the market wage rate is w and the real interest rate is r, what is the PDV of this production process, and how should t be chosen
17.3 As scotch whiskey ages, its value increases. One dollar of scotch at year 0 is worth VðtÞ ¼ expf2 ffiffi t p ! 0:15tg dollars at time t.If the interest rate is 5 percent, after how many years should a person sell scotch in order to maximize the PDV of this sale?
17.2 Assume that an individual expects to work for 40 years and then retire with a life expectancy of an additional 20 years. Suppose also that the individual’s earnings increase at a rate of 3 percent per year and that the interest rate is also 3 percent (the overall price level is constant in
17.1 An individual has a fixed wealth (W) to allocate between consumption in two periods (c1 and c2). The individual’s utility function is given by Uðc1,c2Þ, and the budget constraint is W ¼ c1 þ c2 1 þ r, where r is the one-period interest rate.a. Show that, in order to maximize utility
16.11 A few results from demand theory The theory developed in this chapter treats labor supply as the mirror image of the demand for leisure. Hence, the entire body of demand theory developed in Part 2 of the text becomes relevant to the study of labor supply as well. Here are three examples.a.
16.10 Family labor supply A family with two adult members seeks to maximize a utility function of the form Uðc, h1, h2Þ, where c is family consumption and h1 and h2 are hours of leisure of each family member. Choices are constrained by c ¼ w1ð24 % h1Þ þ w2ð24 % h2Þ þ n, where w1 and w2 are
16.9 Compensating wage differentials for risk An individual receives utility from daily income (y), given by Uð yÞ ¼ 100y % 1 2y2:The only source of income is earnings. Hence y ¼ wl, where w is the hourly wage and l is hours worked per day. The individual knows of a job that pays $5 per hour
16.8 Following in the spirit of the labor market game described in Example 16.6, suppose the firm’s total revenue function is given by R ¼ 10l % l 2and the union’s utility is simply a function of the total wage bill:Uðw, lÞ ¼ wl:a. What is the Nash equilibrium wage contract in the two-stage
16.7 Universal Fur is located in Clyde, Baffin Island, and sells high-quality fur bow ties throughout the world at a price of $5 each.The production function for fur bow ties (q) is given by q ¼ 240x % 2x2, where x is the quantity of pelts used each week. Pelts are supplied only by Dan’s Trading
16.6 The Ajax Coal Company is the only hirer of labor in its area. It can hire any number of female workers or male workers it wishes. The supply curve for women is given by lf ¼ 100wf and for men by lm ¼ 9w2 m, where wf and wm are the hourly wage rates paid to female and male workers,
16.5 Carl the clothier owns a large garment factory on an isolated island. Carl’s factory is the only source of employment for most of the islanders, and thus Carl acts as a monopsonist. The supply curve for garment workers is given by l ¼ 80w, where l is the number of workers hired and w is
16.4 Suppose demand for labor is given by l ¼ %50w þ 450 and supply is given by l ¼ 100w, where l represents the number of people employed and w is the real wage rate per hour.a. What will be the equilibrium levels for w and l in this market?b. Suppose the government wishes to increase the
16.3 A welfare program for low-income people offers a family a basic grant of $6,000 per year. This grant is reduced by $0.75 for each $1 of other income the family has.a. How much in welfare benefits does the family receive if it has no other income? If the head of the family earns $2,000 per
16.2 As we saw in this chapter, the elements of labor supply theory can also be derived from an expenditure-minimization approach.Suppose a person’s utility function for consumption and leisure takes the Cobb–Douglas form U(c, h) ¼ c ah1–a. Then the expenditure-minimization problem is
16.1 Suppose there are 8,000 hours in a year (actually there are 8,760) and that an individual has a potential market wage of $5 per hour.a. What is the individual’s full income? If he or she chooses to devote 75 percent of this income to leisure, how many hours will be worked?b. Suppose a rich
15.12 Signaling with entry accommodation This question will explore signaling when entry deterrence is impossible; thus, the signaling firm accommodates its rival’s entry.Assume deterrence is impossible because the two firms do not pay a sunk cost to enter or remain in the market. The setup of
15.11 Competition on a circle Hotelling’s model of competition on a linear beach is used widely in many applications, but one application that is difficult to study in the model is free entry. Free entry is easiest to study in a model with symmetric firms, but more than two firms on a line cannot
15.10 Inverse elasticity rule Use the first-order condition (Equation 15.2) for a Cournot firm to show that the usual inverse elasticity rule from Chapter 11 holds under Cournot competition (where the elasticity is associated with an individual firm’s residual demand, the demand left after all
15.9 Herfindahl index of market concentration One way of measuring market concentration is through the use of the Herfindahl index, which is defined as H ¼ Xn i¼1 s2 i , where st ¼ qi/Q is firm i’s market share. The higher is H, the more concentrated the industry is said to be. Intuitively,
15.8 Recall the Hotelling model of competition on a linear beach from Example 15.5. Suppose for simplicity that ice cream stands can locate only at the two ends of the line segment (zoning prohibits commercial development in the middle of the beach). This question asks you to analyze an
15.7 Assume as in Problem 15.1 that two firms with no production costs, facing demand Q ¼ 150 $ P, choose quantities q1 and q2.a. Compute the subgame-perfect equilibrium of the Stackelberg version of the game in which firm 1 chooses q1 first and then firm 2 chooses q2.b. Now add an entry stage
15.6 Recall Example 15.6, which covers tacit collusion. Suppose (as in the example) that a medical device is produced at constant average and marginal cost of $10 and that the demand for the device is given by Q ¼ 5,000 $ 100P:The market meets each period for an infinite number of periods. The
15.5 Consider the following Bertrand game involving two firms producing differentiated products. Firms have no costs of production. Firm 1’s demand is q1 ¼ 1 $ p1 þ bp2, where b > 0. A symmetric equation holds for firm 2’s demand.
15.4 Suppose that firms 1 and 2 operate under conditions of constant average and marginal cost but that firm 1’s marginal cost is c1 ¼ 10 and firm 2’s is c2 ¼ 8. Market demand is Q ¼ 500 $ 20P.a. Suppose firms practice Bertrand competition, that is, setting prices for their identical
15.3 Let ci be the constant marginal and average cost for firm i (so that firms may have different marginal costs). Suppose demand is given by P ¼ 1 $ Q.a. Calculate the Nash equilibrium quantities assuming there are two firms in a Cournot market. Also compute market output, market price, firm
15.2 Suppose that firms’ marginal and average costs are constant and equal to c and that inverse market demand is given by P ¼ a $ bQ, wherea, b > 0.a. Calculate the profit-maximizing price–quantity combination for a monopolist. Also calculate the monopolist’s profit.b. Calculate the Nash
15.1 Assume for simplicity that a monopolist has no costs of production and faces a demand curve given by Q ¼ 150 $ P.a. Calculate the profit-maximizing price–quantity combination for this monopolist. Also calculate the monopolist’s profit.b. Suppose instead that there are two firms in the
14.12 The welfare effects of third-degree price discrimination In an important 1985 article,18 Hal Varian shows how to assess third-degree price discrimination using only properties of the indirect utility function (see Chapter 3). This problem provides a simplified version of his approach. Suppose
14.11 More on the welfare analysis of quality choice An alternative way to study the welfare properties of a monopolist’s choices is to assume the existence of a utility function for the customers of the monopoly of the form utility ¼ U(Q, X), where Q is quantity consumed and X is the quality
14.10 Taxation of a monopoly good The taxation of monopoly can sometimes produce results different from those that arise in the competitive case. This problem looks at some of those cases. Most of these can be analyzed by using the inverse elasticity rule (Equation 14.1).a. Consider first an ad
14.9 Suppose a monopolist produces alkaline batteries that may have various useful lifetimes (X). Suppose also that consumers’(inverse) demand depends on batteries’ lifetimes and quantity (Q) purchased according to the function PðQ, XÞ ¼ gðX ' QÞ, where g 0 < 0. That is, consumers care
14.8 Suppose the government wishes to combat the undesirable allocational effects of a monopoly through the use of a subsidy.a. Why would a lump-sum subsidy not achieve the government’s goal?b. Use a graphical proof to show how a per-unit-of-output subsidy might achieve the government’s goal.c.
14.7 Suppose a perfectly competitive industry can produce widgets at a constant marginal cost of $10 per unit. Monopolized marginal costs increase to $12 per unit because $2 per unit must be paid to lobbyists to retain the widget producers’ favored position. Suppose the market demand for widgets
14.6 Suppose a monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is given by Q1 ¼ 55 " P1, and the demand curve
14.5 Suppose a monopoly market has a demand function in which quantity demanded depends not only on market price (P) but also on the amount of advertising the firm does (A, measured in dollars). The specific form of this function is Q ¼ ð20 " PÞð1 þ 0:1A " 0:01A2Þ:The monopolistic firm’s
14.3 A single firm monopolizes the entire market for widgets and can produce at constant average and marginal costs of AC ¼ MC ¼ 10:Originally, the firm faces a market demand curve given by Q ¼ 60 " P:a. Calculate the profit-maximizing price–quantity combination for the firm. What are the
14.2 A monopolist faces a market demand curve given by Q ¼ 70 " p:a. If the monopolist can produce at constant average and marginal costs of AC ¼ MC ¼ 6, what output level will the monopolist choose to maximize profits? What is the price at this output level? What are the monopolist’s
14.1 A monopolist can produce at constant average and marginal costs of AC ¼ MC ¼ 5. The firm faces a market demand curve given by Q ¼ 53 " P.a. Calculate the profit-maximizing price–quantity combination for the monopolist. Also calculate the monopolist’s profits.b. What output level would
13.14 Social welfare functions and income taxation The relationship between social welfare functions and the optimal distribution of individual tax burdens is a complex one in welfare economics. In this problem, we look at a few elements of this theory. Throughout we assume that there are m
13.13 Initial endowments, equilibrium prices, and the first theorem of welfare economics In Example 13.3 we computed an efficient allocation of the available goods and then found the price ratio consistent with this allocation. That then allowed us to find initial endowments that would support this
13.12 Productive efficiency with calculus In Example 13.3 we showed how a Pareto efficiency exchange equilibrium can be described as the solution to a constrained maximum problem. In this problem we provide a similar illustration for an economy involving production. Suppose that there is only one
13.11 An example of Walras’ law Suppose there are only three goods (x1, x2, x3) in an economy and that the excess demand functions for x2 and x3 are given by ED2 ¼ ! 3p2 p1þ2p3 p1! 1, ED3 ¼ ! 4p2 p1! 2p3 p1! 2:a. Show that these functions are homogeneous of degree 0 in p1, p2, and p3.b. Use
13.10 The trade theorems The construction of the production possibility curve shown in Figures 13.2 and 13.3 can be used to illustrate three important‘‘theorems’’ in international trade theory. To get started, notice in Figure 13.2 that the efficiency line Ox,Oy is bowed above the main
13.9 Returns to scale and the production possibility frontier The purpose of this problem is to examine the relationships among returns to scale, factor intensity, and the shape of the production possibility frontier.Suppose there are fixed supplies of capital and labor to be allocated between the
13.8 Tax equivalence theorem Use the computer algorithm discussed in footnote 24 to show that a uniform ad valorem tax of both goods yields the same equilibrium as does a uniform tax on both inputs that collects the same revenue. Note: This tax equivalence theorem from the theory of public finance
13.7 Use the computer algorithm discussed in footnote 24 to examine the consequences of the following changes to the model in Example 13.4. For each change, describe the final results of the modeling and offer some intuition about why the results worked as they did.a. Change the preferences of
13.6 In the country of Ruritania there are two regions, A and B. Two goods (x and y) are produced in both regions. Production functions for region A are given by xA ¼ ffiffiffi lx p , yA ¼ffiffiffi ly q;here lx and ly are the quantities of labor devoted to x and y production, respectively. Total
13.5 Smith and Jones are stranded on a desert island. Each has in his possession some slices of ham (H) and cheese (C). Smith is a choosy eater and will eat ham and cheese only in the fixed proportions of 2 slices of cheese to 1 slice of ham. His utility function is given by US ¼ min(H, C/2).Jones
13.4 Suppose that Robinson Crusoe produces and consumes fish (F) and coconuts (C). Assume that, during a certain period, he has decided to work 200 hours and is indifferent as to whether he spends this time fishing or gathering coconuts. Robinson’s production for fish is given by ?
13.3 Consider an economy with just one technique available for the production of each good.Good Food Cloth Labor per unit output 1 1 Land per unit output 2 1a. Suppose land is unlimited but labor equals 100. Write and sketch the production possibility frontier.b. Suppose labor is unlimited but land
13.2 Suppose two individuals (Smith and Jones) each have 10 hours of labor to devote to producing either ice cream (x) or chicken soup (y). Smith’s utility function is given by US ¼ x0:3 y0:7, whereas Jones’ is given by UJ ¼ x0:5 y0:5:The individuals do not care whether they produce x or y,
13.1 Suppose the production possibility frontier for guns (x) and butter (y) is given by x 2þ2y 2 ¼ 900.a. Graph this frontier.b. If individuals always prefer consumption bundles in which y ¼ 2x, how much x and y will be produced?c. At the point described in part (b), what will be the RPT and
12.12 Cobweb models One way to generate disequilibrium prices in a simple model of supply and demand is to incorporate a lag into producer’s supply response. To examine this possibility, assume that quantity demanded in period t depends on price in that periodðQD t ¼ a & bPtÞ but that quantity
12.11 The Ramsey formula for optimal taxation The development of optimal tax policy has been a major topic in public finance for centuries.17 Probably the most famous result in the theory of optimal taxation is due to the English economist Frank Ramsey, who conceptualized the problem as how to
12.10 Ad valorem taxes Throughout this chapter’s analysis of taxes we have used per-unit taxes—that is, a tax of a fixed amount for each unit traded in the market. A similar analysis would hold for ad valorem taxes—that is, taxes on the value of the transaction (or, what amounts to the same
12.9 Suppose that the market demand for a product is given by QD ¼ A & BP. Suppose also that the typical firm’s cost function is given by C(q) ¼ k þ aq þ bq2.a. Compute the long-run equilibrium output and price for the typical firm in this market.b. Calculate the equilibrium number of firms
12.8 The domestic demand for portable radios is given by Q ¼ 5,000 & 100P, where price (P) is measured in dollars and quantity (Q) is measured in thousands of radios per year. The domestic supply curve for radios is given by Q ¼ 150P.a. What is the domestic equilibrium in the portable radio
12.7 The perfectly competitive videotape-copying industry is composed of many firms that can copy five tapes per day at an average cost of $10 per tape. Each firm must also pay a royalty to film studios, and the per-film royalty rate (r) is an increasing function of total industry output (Q):r ¼
12.6 The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by STC ¼ 0.5q2 þ 10q þ 5 and short-run marginal costs given by SMC ¼ q þ 10, where q is the output of snuffboxes per day.a. What is the short-run supply curve for each snuffbox
12.5 Suppose that the demand for stilts is given by Q ¼ 1,500 & 50P and that the long-run total operating costs of each stilt-making firm in a competitive industry are given by C(q) ¼ 0.5q2 & 10q.Entrepreneurial talent for stilt making is scarce. The supply curve for entrepreneurs is given by QS
12.4 A perfectly competitive industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (qi ¼ 20). The minimum average cost is $10 per unit. Total market demand is given by Q ¼ 1,500 & 50P.a.
12.3 A perfectly competitive market has 1,000 firms. In the very short run, each of the firms has a fixed supply of 100 units. The market demand is given by Q ¼ 160,000 & 10,000P.a. Calculate the equilibrium price in the very short run.b. Calculate the demand schedule facing any one firm in this
12.2 Suppose there are 1,000 identical firms producing diamonds. Let the total cost function for each firm be given by C(q, w) ¼ q2 þ wq, where q is the firm’s output level and w is the wage rate of diamond cutters.a. If w ¼ 10, what will be the firm’s (short-run) supply curve? What is the
12.1 Suppose there are 100 identical firms in a perfectly competitive industry. Each firm has a short-run total cost function of the form CðqÞ ¼ 1 300 q3 þ 0:2q2 þ 4q þ 10:a. Calculate the firm’s short-run supply curve with q as a function of market price (P).b. On the assumption that there
11.15 Property rights theory of the firm This problem has you work through some of the calculations associated with the numerical example in the Extensions. Refer to the Extensions for a discussion of the theory in the case of Fisher Body and General Motors (GM), who we imagine are deciding between
11.14 Profit functions and technical change Suppose that a firm’s production function exhibits technical improvements over time and that the form of the function is q ¼ f(k, l, t). In this case, we can measure the proportional rate of technical change as@ ln q@t ¼ ft f(compare this with the
11.13 Cross-price effects in input demand With two inputs, cross-price effects on input demand can be easily calculated using the procedure outlined in Problem 11.12.a. Use steps (b), (d), and (e) from Problem 11.12 to show that eK, w ¼ sLðr þ eQ, PÞ and eL, v ¼ sKðr þ eQ, PÞ:b. Describe
11.12 More on the derived demand with two inputs The demand for any input depends ultimately on the demand for the goods that input produces. This can be shown most explicitly by deriving an entire industry’s demand for inputs. To do so, we assume that an industry produces a homogeneous good, Q,
11.11 Le Chaˆtelier’s Principle Because firms have greater flexibility in the long run, their reactions to price changes may be greater in the long run than in the short run. Paul Samuelson was perhaps the first economist to recognize that such reactions were analogous to a principle from
11.10 Some envelope results Young’s theorem can be used in combination with the envelope results in this chapter to derive some useful results.a. Show that @l(P, v, w)/@v ¼ @k(P, v, w)/@w. Interpret this result using substitution and output effects.b. Use the result from part (a) to show how a
11.9 A CES profit function With a CES production function of the form q ¼ ðkq þ l qÞg=q a whole lot of algebra is needed to compute the profit function as P(P, v, w) ¼ KP1/(1%g)(v 1%s þ w1%s)g/(1%s)(g%1), where s ¼ 1/(1 % r) and K is a constant.a. If you are a glutton for punishment (or if
11.8 How would you expect an increase in output price, P, to affect the demand for capital and labor inputs?a. Explain graphically why, if neither input is inferior, it seems clear that a rise in P must not reduce the demand for either factor.b. Show that the graphical presumption from part (a) is
11.7 This problem concerns the relationship between demand and marginal revenue curves for a few functional forms.a. Show that, for a linear demand curve, the marginal revenue curve bisects the distance between the vertical axis and the demand curve for any price.b. Show that, for any linear demand
11.6 Would a lump-sum profits tax affect the profit-maximizing quantity of output? How about a proportional tax on profits? How about a tax assessed on each unit of output? How about a tax on labor input?
11.5 The Acme Heavy Equipment School teaches students how to drive construction machinery. The number of students that the school can educate per week is given by q ¼ 10 min(k, l)r, where k is the number of backhoes the firm rents per week, l is the number of instructors hired each week, and g is
11.4 The market for high-quality caviar is dependent on the weather. If the weather is good, there are many fancy parties and caviar sells for $30 per pound. In bad weather it sells for only $20 per pound. Caviar produced one week will not keep until the next week. A small caviar producer has a
11.3 The production function for a firm in the business of calculator assembly is given by q ¼ 2 ffi lp , where q denotes finished calculator output and l denotes hours of labor input. The firm is a price-taker both for calculators(which sell for P) and for workers (which can be hired at a wage
11.2 Universal Widget produces high-quality widgets at its plant in Gulch, Nevada, for sale throughout the world. The cost function for total widget production (q) is given by total cost ¼ 0.25q2.Widgets are demanded only in Australia (where the demand curve is given by qA ¼ 100 % 2PA) and

Showing 4400 - 4500 of 5625

First
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved