Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Given the monopolistic competitve firm output, marginal cost, marginal revenue & average variable cost.

A monopolistically competitive firm is producing 50 units of output in the short run where marginal cost is $3.00, average total costs are $5.00, price is $4.50, average variable cost is $4.00, and marginal revenue is $3.00. How much profit is the firm making? What output recommendation would you make for the firm? r? ~ n-p? class=MsoNormal style='margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt; margin-left:0in;text-align:justify;line-height:150%;mso-pagination:none'>1. Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J Mitchell's MRS is 2. At bundle J, if Mitchell increases consumption of Y by 1 unit how many units of X can he give up and still reach the same level of utility?

a) ½.

b) 1.

c) 2.

d) 4.

2. Over the past decade medical price have rise more rapidly than other prices. In order to rising medical costs have affected customer alternatives, let X represent the quantity of medical services, and let Y represent the quantity of other goods. Furthermore, let income (M) be measured in hundreds of dollars, the price of medical services and other goods in terms of dollars per minute, with M =100, Px =4, and Py = 5.

a) Graph the budget line, and determine the market rate of substitution.

b) Illustrate the budget set.

c) Show in your graph what happens to the budget constraint if Px increases to $10.

d) What is the meaning of the slope of the two budget constraints?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917799

Have any Question? 


Related Questions in Business Economics

International monetary fund imf quotas refer toa the amount

International Monetary Fund? (IMF) "quotas" refer to A. the amount of foreign exchange reserves that each member country is obligated to hold at its central bank. B. the fixed amount of borrowing that each country is all ...

1 which types of firms would normally maximize profits

1. Which types of firms would normally maximize profits along with real-life examples? 2. Should a firm shut down if its weekly revenue is $2,000, its variable cost is $1,000, and its fixed cost is $1,600, of which $1,20 ...

1 assume that the eurozone risk free interest rate n bonds

1) Assume that the eurozone risk free interest rate n bonds with one year to maturity is 4.78 percent and the U.S. risk free rate on one year bonds is 3.15 percent. The currenct exchangerate is $0.90 per euro. assume the ...

Economics for business assignment-topics for group

Economics for Business Assignment- Topics for Group Assignment - GDP - Compare Australia with any other economy and discuss their GDP last 2 to 5 years and factors affecting their GDP. Unemployment - Discuss the unemploy ...

A major problem for negotiations by members of the world

A major problem for negotiations by members of the World Trade Organization to expand free trade has been the issue of agricultural subsidies. U.S. government agricultural subsidies to cotton farmers have allowed them to ...

1 explain how trade balance interest rates and exchange

1. Explain how trade balance, interest rates, and exchange rates are related, and cite an example of how a rise or fall in one changes the others. 2. Does a deficit in China or the US change the overall advantage or disa ...

Maxwell software inc has the following mutually exclusive

Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$24,000 –$27,000 1 14,000 15,000 2 10,500 11,500 3 3,300 10,500 a-1. Calculate the payback period for each project. (Do n ...

Applying saint leorsquos core values to your analysis

Applying Saint Leo’s Core Values to your analysis, describe what GDP measures and some of the limitations of GDP. What is the relationship between economic well-being and social well-being (i.e. happiness)? Can economic ...

In the design of an automobile radiator an engineer has a

In the design of an automobile radiator, an engineer has a choice of using either a brass-copper alloy casting or plastic modeling. Either the material provides the same service. However, the brass-copper alloy weighs 25 ...

1 which of the following is least likely a consequence of

1. Which of the following is least likely a consequence of the division of knowledge? A. The provision of a new bike path in your community. B. A totally self-sufficient family farm. C. The development of the computer ta ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate