(|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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Part A – Microeconomics: Question 1: Indicate whether each of the following changes in price cause total revenue to increase‚ decrease or remain unchanged? Explain why. (2 marks each) a Price falls and demand is elastic; b Price rises and demand is elastic; c Price falls and demand is unitary elastic; d Price rises and demand is unitary elastic; e Price falls and demand is inelastic. Question 2: a Define‚ describe and illustrate with a diagram‚ one opportunity cost
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Answers of Managerial Economics Homework #2 Chapter 5~Chapter 9 1.Using figure 5.3 as a basis‚ construct a series of four figures to show the effect of an increase in the demand for tanker service on the market price when (a) demand is extremely inelastic‚ (b) demand is extremely elastic‚ (c) supply is extremely inelastic‚ and (d) supply is extremely elastic. Answer: [pic] [pic] [pic] [pic] 2.Industry researchers R.S. Platou predicted
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SI THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS SESSION 2‚ 2009 ‚. ECONllOl MICROECONOMICS I FINAL EXAMINATION TIME ALLOWED - 2 HOURS THIS PAPER IS WORTH 50% OF THE TOTAL SUBJECT MARK This examination paper consists of two parts - Part A and Part B Part A consists of 30 multiple choice questions each worth one (1) mark. Answer all the questions in Part A on the answer sheet provided‚ using pencil only: (a) Print your student number‚ name and initials in the space provided
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and there is easy entry and exit. The products are differentiated by the brand name; product attributes‚ and has the perfect environment. The owner will look at the elasticity of demand‚ profit maximizing‚ break-even point‚ total revenue test‚ marginal cost and revenue‚ barriers to entry‚ pricing and nonpricing strategies‚ and product differentiation. The owner needs to take into consideration the business cycle of the current economy‚ how to plan during this time‚ the effect of credit markets
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1 0.5QD = 3‚952.4 – P → P = 3‚952.40 – 0.5QD TR = P*Q → TR = (3‚952.40 – 0.5Q) *Q → TR = 3‚952.40Q – 0.5Q^2 MR = 3‚952.40 – Q (B) Profit = TR – TC Profit = 3‚952.40Q – 0.5Q^2 – (2‚200 + 480Q + 20Q^2) Profit = -2‚200 + 3‚472.40Q – 20.5Q^2 Marginal Profit = 3‚472.40 – 41Q → MP = 0 3‚472.40 – 41Q = 0 → 41Q = 3‚472.40 → Optimal Quantity = 85 (rounded off) Therefore‚ Coolidge Corporation should produce and sell 85 lasers each month to maximise profit. (C) Substitute Q = 85 into Profit =
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that it can increase labor productivity and‚ therefore‚ net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR = 1‚000 - 10P How much pollution reduction should Appalachian Coal Mining undertake? Set MC = MR
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transported is only a few tons between one another. c. What number of drivers appears to minimize the marginal cost of transportation assuming that all drivers are paid the same salary? Drivers 1‚ 2‚ and 3 appear to be minimizing the marginal cost of transportation assuming that all drivers are paid the same salary. Driver 4 seems to be within the median‚ neither minimizing the marginal cost of transportation nor maximizing efficiency. 2. The Palms Dry Cleaning Shop in Fort Lauderdale‚ Florida
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