Ask Macroeconomics Expert

Economics:Demand curve,accounting profit etc.

Problem 1

The following is a demand schedule for shoes:
Price: $100 $80 $60 $40 $20
Quantity: 10 14 18 22 26
a. Illustrate the demand curve.
b. How much will consumers spend on shoes at a price of $80?
c. As price drops from $100 to $80, is the demand elastic or inelastic? Show your work or reasoning.

Problem 2

Advertisers convince people that to be stylish they need twice as many shoes.
a. Redraw the demand curve.
b. How much will consumers now spend on shoes at a price of $80?
c. As price drops from $100 to $80, how does elasticity change as opposed to problem 1? Why?

Problem 3

How large of a tax-induced price increase would it take to reduce cigarette consumption by 20 percent? Show your work.

Problem 4

Identify three goods each for which your demand is (a) elastic and (b) inelastic. What accounts for the difference of elasticity? Explain thoroughly.

Problem 5

Complete the following table. What is the value of fixed cost?
Rate of Output Total Cost Marginal Cost Average Total Cost
0 $100
1 110
2 130
3 165
4 220
5 300

Problem 6

On a graph, depict marginal cost and average total cost using the data from problem 5. Indicate minimum average total cost on the graph.

Problem 7

Suppose a company incurs the following costs:
Labor $400
Equipment $300
Materials $100
It owns the building so it doesn't have to pay the $800 in rent.
a. What is the total accounting cost?
b. What is the total economic cost?
c. Explain why these are different in this way.

Problem 8

Consider the marginal cost for a product like Windows XP. How does the marginal cost for a product like this differ from a product like automobiles? What relevance might there be to this difference?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9203004
  • Price:- $40

Guranteed 36 Hours Delivery, In Price:- $40

Have any Question?


Related Questions in Macroeconomics

Economics assignment -topic evaluation of macroeconomic

Economics Assignment - Topic: Evaluation of Macroeconomic performance of Australia and New Zealand. Task Details: Complete a research-based analysis and evaluation of the relative macroeconomic performance of Australia a ...

Introductory economics assignment -three problem-solving

Introductory Economics Assignment - Three Problem-Solving Questions. Question 1 - Australia and Canada have a free trade agreement in which, Australia exports beef to Canada. a. Draw a graph and use it to explain and ill ...

Question in an effort to move the economy out of a

Question: In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Respond to the following points in your paper on the actions the government would take ...

Question are shareholders residual claimants in a publicly

Question: Are shareholders residual claimants in a publicly traded corporation? Why or why not? In some industries, like hospitals, for-profit producers compete with nonprofit ones. Who is the residual claimant in a nonp ...

Discussion questionsquestion 1 what are the main reasons

Discussion Questions Question 1: What are the main reasons why Nigerians living in extreme poverty? Justify. ( 7) Question 2: Why GDP per capita wouldn't be an accurate measure of the welfare of the average Nigerian? Exp ...

Question according to the definition a perfectly

Question: According to the definition, a perfectly competitive firm cannot affect the market price by any changing only its own output. Producer No. 27 in problem 2 decides to experiment by producing only 8 units. a. Wha ...

Question jones is one of 100000 corn farmers in a perfectly

Question: Jones is one of 100,000 corn farmers in a perfectly competitive market. What will happen to the price she can charge if: a. The rental price on all farmland increases as urbanization turns increasing amounts of ...

Question good x is produced in a perfectly competitive

Question: Good X is produced in a perfectly competitive market using a single input, Y, which is itself also supplied by a perfectly competitive industry. If the government imposes a price ceiling on Y, what happens to t ...

Question pepsico produces both a cola and a major brand of

Question: PepsiCo produces both a cola and a major brand of potato chips. Coca-Cola produces only drinks. When might it make sense for PepsiCo to divest its potato chip operations? For Coca-Cola to begin manufacturing sn ...

Question again demand is qd 32 - 15p and supply is qs -20

Question: Again, demand is QD = 32 - 1.5P and supply is QS = -20 + 2.5P. Now, however, buyers and sellers have transaction costs of $2 and $3 per unit, respectively. Compare the equilibrium values with those you calculat ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As