Exhibit 11.3 $10 $4 0 a) $300. Ob) $10. Oc) $700. Refer to Exhibit 11.3, which shows the demand and supply curves of a resource. The economic rent in equilibrium equals d) $60. 100 e) $40. S D Units of a Resource
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- The market for lemonade is currently in equilibrium and the cost of lemons rises (an input How will this affect the lemonade market Price will rise and sales will increase Price will rise and sales will fall Price will fall and sales will rise Price will fall and sales will fallA dairy business jointly produces butter and cheese from a "fixed" amount of milk as shown in the table below. The price of butter per pound is $0.5 and the price of cheese per pound is $2. If the dairy business wishes to maximize its profit, it will produce of cheese. Cheese gained (in pounds) Profit gained from increased Butter forgone (in pounds) Profit lost from decreased production of cheese production of butter (C) 1 1 1 1 a. 1 pound Ob. 3 pounds 4 pounds * c. Od. 2 pounds (A) (B) 2 3 4 5 6 (D) (E)Illustrate and explain the effect of the increased use of plant-based milk on the overall milk market.
- The tapie pelow Cotains pricerdemand and total cOSt data Tor the production of treadmilis, where p is the wholesale price (in dollars) of a treadmill for an annual demand of x treadmills, and C is the total cost (in dollars) of producing x treadmills. p ($) C ($) 2,910 1,450 3,634,000 3,415 1,275 3,782,000 4,645 1,123 4,185,000 5,330 918 4,290,000 Use this data to find a linear regression equation for price-demand data, using x as the independent variable: p= ax + b, where a is rounded to 1 decimal place and 6 is rounded to the nearest integer. Use this data to find a linear regression model for the cost data, using x as the independent variable: C(x) = cx + d, where c is rounded to the nearest integer and d is.rounded to the nearest 10,000. To Do Notifications Dashboard Calendar04. The maximum that buyers are willing to pay for the 8-th unit of this product is (a) $4 (b) $12 (c) $18 (d) $22 (e) $24 05. The minimum that suppliers will accept for the twentieth unit of this product is (a) $2 (b) $8 (c) $12 (d) $18 (e) $22 06. Assuming that this market is at equilibrium, what is the "consumer's surplus" and producer's surplus? (a) consumer's surplus is $72; producer's surplus is $36 (b) consumer's surplus is $98; producer's surplus is $49 (c) consumer's surplus is $32; producer's surplus is $16 (d) consumer's surplus is $36; producer's surplus is $72 (e) consumer's surplus is $144; producer's surplus is $14Following figure shows the competitive market for platinium and a firm making production in this market. PLATINIUM MARKET Price Price (E/kg) FIRM 100 Smarket MC 90 80 €70 70 ATC 60 50 AVC D market 40 30 20 2500 (kg/week) 10 7. • 10 Quantity (kg/week) a. What will be the production level of this individual firm and its Total Revenue? (* b. Calculate the Total Cost for this firm and derive the level of its profit or loss (/ c. What are the break even and shut-down price levels for this firm (
- What is the equilibrium price of a small soda? * Market Demand Schedule Price of a Number Small demanded Soda per day $0.25 $0.50 $0.75 $1.00 890 500 480 470 $1.25 $1.50 $1.75 410 350 280 $2.00 $2.25 240 200 $2.50 $2.75 150 100 O $1.00 $1.25 $1.50 $1.75 not enough information available to determineCoffee beans are an input in the production of lattes, and lattes and cookies are complements. A rise in the price of coffee beans will cause in the total surplus in the cookie market. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a rise a fall c nothing to change a rise and then a fallSafari File Edit View History Bookmarks Develop Window Help 20% O Sat 12:19 PM A bbhosted.cuny.edu F Access Denied - Jordan Retro 1 High OG . WAITING D Search Results B6 Take Test: Short Exam #2. C Solved: If The MPP Of An. * Question Completion Status: Question 19 24 points Save Answer A small local firm produces string lights for Halloween and has the following revenues and costs in a perfectly competitive market: Output in units per hour (Q) Variable Total Cost (TC) Marginal Cost (MC) Total Profit, Price of $15 Market Price of Total Fixed Cost (FC) Revenue Cost (VC) $15 $15 1 $15 15 9. 14 9. $15 30 5 20 25 3 $15 45 33 13 4 $15 5 48 53 15 5 $15 75 64 69 16 a. If the market price is $15, what is the revenue at output equal to 4 units? b. What is the total cost at output equal to 3 units? c. What is the marginal cost at output equal to 2 units? d. If the market price is $15, how much output per hour should the firm produce? What is the profit at that level of output? étv W 31
- 4) A manufacturing firm produces power drills that it sells at a market price of $100/drill and ships to markets around the country out of a central freight terminal. Intermediate inputs cost $10/drill. It costs the firm $1 per mile to ship each drill from the factory at location X to the freight terminal. Direct labor costs are $20/drill and one-way commuting cost is $1/mile from the residential zone that is 8 miles from the central freight terminal. a) What is the firm's bid rent curve for land, r(x)? b) What rent is the firm willing to pay at X=2? c) Suppose commuting costs increase from $1 to $2 per one-way mile. Find the new bid rent curve for land. d) What rent is the firm willing to pay at X=2?Since most consumers spend very little on salt, a small increase in the price of salt will:A. reduce quantity demanded by a large amountB. not reduce quantity demanded by very muchC. not change quantity demandedD. increase quantity demanded by a small amount 2.Fred is considering opening a ski shop in Colorado. Assume Fred will incur the following costs: building rent= $100000/year, inventory= $250000/ year, energy=$50000/year, and labor (one clerk) = $10000/year. In addition, Fred’s current income as a computer programmer is $40000 per year. Assuming Fred would earn $ 460000 in revenues, he could expect to earn:A. an accounting profit of $10000 per yearB. an accounting profit of $ 60000 per yearC. an economic profit of $ 10000 per yearD. an economic profit of $50000 per year 3.Suppose a firm employs only capital and labour (K and L) and its production function is Q = 2KL. If the quantities of labour and capital are fixed at K =10 and L = 25, then:A. total output cannot exceed 125B.…What is the marginal benefit associated with producing sx units of the control variable, O (identify point Din the table)? 35 Total variable Benefits Marginal Marginal Marginal Net Benefit Control Total Net Costs Benefits Benefit Cost Sepped B(Q) C(Q) N(Q) MB(Q) MC(Q) MNB (Q) 1. 900 100 800 900 100 800 2 1,700 300 800 200 600 3 2,400 600 1,800 700 E 400 4 1,000 2,000 600 400 200 3,500 1,500 2,000 500 500 6. 3,900 2,100 1,800 D 600 -200 4,200 2,800 1,400 300 700 -400 4,400 B 200 800 -600 008 4,500 4,500 100 900 -800 10 4,500 5.500 -1,000 1,000 -1,000 Mutiple Choice 600 400 200 100