Question: I need help in understanding the formulas and to create them in long formate. Q1 How do I calculate and write out the long form
I need help in understanding the formulas and to create them in long formate.
Q1
- How do I calculate and write out the long form for the following question?
Consider the following benefit and cost functions: B(X) = 600X -12X2and C(X) = 20X2. Use this information to answer the following questions.
- What are the MB and the MC?
- What level of X maximizes the net benefit?
- What is the net benefit (NB)?
Please include the letter with each part of your answer (a, b, c).
Q2
- Quarterly demand and supply for the Petram Company is given by Qd= 1000 + 0.5M + 0.25A - 100P and Qs= -750 + 100P, where Q is quantity per quarter, P is price, M is income, and A is advertising expenditure. Suppose that A = 1000 and M =20,000, and answer the following questions.
- What is the equilibrium price and quantity?
- What is the inverse demand?
Please include the letter with each part of your answer (a, b).
Q3
- Consider a market supply and demand represented by the following: Qs= 4P - 120 and Qd= 1000 - 10P. Use this information to answer the following questions.
- Calculate equilibrium price and quantity.
- What is the consumer surplus?
- If the government imposes an excise tax of $2, what would be the new equilibrium price, quantity?
- What would happen to the consumer surplus?
Please include the letter with each part of your answer (a, b, c, d).
Q4
- Consider that the C & A Lawnmower Firm operates in a highly competitive industry. The MB(Q) = 100, which means that the price of each service is $100. The estimate for the total cost is given by C(Q) = 100,000 + 20Q + 0.1Q2. Use this information to answer the following questions.
- What is net benefit maximizing level of output?
- What is the total benefit function?
- What is the maximum net benefit?
Please include the letter with each part of your answer (a, b, c).
Q5
- Consider the benefit and cost of Mr. T's Coffee Shop, which are indicated by the following: B(Q) = 50 + 18Q - 2Q2and C(Q) = 40 + 6Q. Use this information to answer the following questions.
- What is the marginal benefit, represented by MB(Q)?
- What is the marginal cost, represented by MC(Q)?
- At what level of output is the net benefit maximized?
Please include the letter with each part of your answer (a, b, c).
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