materials cost. (b) Polly’s Parkas plans to produce 2000 parkas per week. At the factor prices given above‚ how many workers should the firm hire (at 40 hours per week) and how many machines should it rent (at 40 machine-hours per week)? What are the marginal and average costs at this level of production? (c) This process requires skilled workers‚ who earn $32 per hour. The rental rate on the machines used in the process is $64 per hour. At these factor prices‚ what are total costs as a function of
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total revenue (the marginal revenue) from the fourth shirt per day. What price reduction was necessary to sell four rather than three shirts? Marginal revenue for the fourth shirt is $41 even though it price is $44. Price reduction is $1 which is from $45 to $44. 2) What is the change in total revenue from lowering the price to sell seven rather than six shirts in each color each day? The change in total revenue from selling seventh shirts rather than sixth shirts is $28.The marginal revenue of the
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fixed at 10 units. (a) Determine the total product function (TPL) for input L. (2 marks) (b) Determine the marginal product function for input L. (2 marks) (c) Determine the average product function for input L. (2 marks) (d) Find the number of units of input L that maximizes the total product function. (2 marks) (e) Find the number of units of input L that maximizes the marginal product function. (2 marks) (f) Find the number of units of input L that maximizes the average product function
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their decision. The premises for these models is to find out what & how to produce products‚ this is modeled after the Traditional Economic System. Economists are concerned with exactly how much a person will pay for "goods" and that is considered marginal utility. All of this ties to the Diamond-Water Paradox because the demand for diamonds is high as is the price‚ with that the demand for water is also high but the cost is significantly lower. As the consumption of water increases it is valued
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NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Business Economics SEM – I 1. Calculate Elasticity in the following cases: a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently‚ the demand for the product is raised from 20‚000 units to 25‚000 units. Calculate the price elasticity of demand. ANSWER A: PRICE ELASTICITY OF DEMAND: MEANING: Price elasticity of demand
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demand for your parking lot spaces is -2‚ and price is $8 per day. If your MC is zero‚ and your capacity is 80% full at 9 A.M. over the last month‚ are you optimizing? We are clearly not optimizing because we are only optimized when marginal revenue equals marginal cost. Because our costs are sunk we should lower our prices so that we can fill to capacity. 14.4 A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value
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(|15-13|/((15+13)/2))/(|44-45|/((45+44)/2))=6.36 The international elasticity of demand is (|30-25|/((30+25)/2))/(|20-21|/((20+21)/2))=3.72 To estimate the profit-maximization price‚ the marginal cost needs to be equal to the marginal revenue. When (p-MC)/p=1/|e| ‚ the profits are maximized. But as the marginal cost was not mentioned in the case‚ the profit-maximization price cannot be calculated. However‚ between
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Citizen’s Advice Bureaux and inoculations for children and students. Costs Benefits • Welfare loss because merit goods tend to be under-consumed by the A free market External Benefit B C Supply = Private Marginal Cost Social Marginal Benefit Private Marginal Benefit Qp Qs Output (Q) Education as a merit good The argument concerning imperfect information is an important one here. Parents may be unaware of the longer-term benefits that their children might derive from education
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The ATHENIANS – Economic thought from great Athenian and Greek philosophers Oeconomicus by Xenophon He wrote one ofthe earliest economic text in existence – mainly focuses on Ideas regarding households management – how to manage a economic household – payment of the bills‚ saving money – a successful household is created from moderation and hard work or your household will fall apart The Republic by Platon in his book he mostly talked about the iideas of democratic and republican forms of government
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hours With optimal stocking quantity: 685 And expected profit/day: $371.33 B. What explains Sheen’s choice of effort level h? Since the marginal cost of her effort is $10/hour and the marginal benefit of her effort is equal to: .8 * 50 = 10 h = 4 2√ The hours invested will be optimized when marginal cost = marginal benefit‚ in this case h = 4. C. Compare the optimal profit under this scenario with the optimal profit derived in Problem #1. Optimal Profit in #1 = $331
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