the market clearing level is the quantity supplied equal to quantity demanded. Formulas Qs = 12000 + 50P Qd = 52000 - 30P Qd = Qs-----------------(1) Putting values in the above equation we get‚ 52000 - 30p = 12000 + 50p 52000 - 12000 = 30p + 50p 40000 = 80p P = 500 Clearing level of price (P) = 500 Clearing level of quantity (Q) = 52000 - 30P = 52000 - 30(500) Clearing level of quantity (Q) = 52000 - 15000 = 37000 / 1000 = 37 M/ton 2. Answer to part
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ECON 600 Lecture 3: Profit Maximization I. The Concept of Profit Maximization Profit is defined as total revenue minus total cost. Π = TR – TC (We use Π to stand for profit because we use P for something else: price.) Total revenue simply means the total amount of money that the firm receives from sales of its product or other sources. Total cost means the cost of all factors of production. But – and this is crucial – we have to think in terms of opportunity cost‚ not just explicit
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too late‚ you will have to take a taxi to the restaurant‚ which is right next to the concert hall‚ and then back home after the concert. The two taxi rides will cost you a total of $60. If you go to the tuition lesson as usual‚ you will spend only $30 on your dinner and you can walk to your student’s home. Assuming you are rational and there is no other cost you need to consider‚ what would have to be the minimum benefit you can get from the dinner and the concert to make you willing to go out with
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or 40+4Q=100-2Q since Qs=Qd also 6Q=60 Q*=60/6=10 Equilibrium quantity Now to find the price Ps*=40+ 4(10) = 80 or Pd*=100-2(10) = 80 So to graph we say how much is the price when the quantity demanded (or supplied) is zero in both equations Ps = 40 + 4(0)= 40 Pd = 100 – 2(0) = 100. These are the intercepts at the Y axis. To calculate the intercept at the X axis we say how much is the quantity demanded when the price is zero‚ so 0 = 100 -2Qd 2Qd=100 Qd=100/2=50 there is no need
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for a product sold by an oligopolist is given below: QD = 370 – P The firm’s marginal cost function is given below: MC = 10 + 4Q Calculate the equilibrium price and quantity. Solution: P = 370 – Q so TR = 370Q – Q2 and MR = 370 – 2Q MR = 370 – 2Q = 10 + 4Q = MC so Q = 60 and P = 310 2. The demand function for a product sold by an oligopolist is given below: QD = 135 – 0.5P The firm’s marginal cost function is given below: MC = 30 + 4Q Calculate the equilibrium price and quantity.
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cleaner. Using the 26 observations report we calculated pricing and cash flows. The General Demand equation used is QD = a + bP + cMavg + dPh Where a is the dependent variable‚ bP is the price of the PoolVac good‚ cMavg is the average household income‚ and the dPh is the price of the related good (Howard Industries). . An estimated demand equation for PoolVac is: Qd = 2729 – 10.8P + 0.0214Mavg + 3.17Ph Where‚ bP is the price of the PoolVac good‚ cMavg is the average household income‚ and
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Book: Principles of Economics (N. Gregory Mankiw) http://admin.wadsworth.com/resource_uploads/static_resources/0324168624/8413/Mankiw_TenPrinciple_Videos.html Introduction economy: Greek: the one who manages the household scarcity: the limited nature of society`s resources economics: the study of how society manages it´s scarce resources economy: a group of people interacting with one another as they go about their lives important: management of society´s resources; resources are scare
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1. A firm’s current profits are $1‚000‚000. These profits are expected to grow indefinitely at a constant annual rate of 3.5 percent. If the firm’s opportunity cost of funds is 5.5 percent‚ determine the value of the firm: Instructions: Round your responses to 2 decimal places. a. The instant before it pays out current profits as dividends. $ million b. The instant after it pays out current profits as dividends. $ million (page 18) Explanation: a. The value of the firm
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Angew. Chem.Int. Ed. 2005‚ 44‚ 4839. 3. Alivisatos‚ A. P. J. Phys. Chem. 1996‚ 100‚ 13226. 5. Burda‚ C.; Chen‚ X.; Narayanan‚ R.; El-Sayed‚ M. A. Chem. Rev. 2005‚ 105‚ 1025. 6. Murray‚ C. B.; Kagan‚ C. R.; Bawendi‚ M. G. Annu. Rev. Mater. Sci. 2000‚ 30‚ 545. 7. Chen‚ X.; Lou‚ Y.; Dayal‚ S.; Qiu‚ X.; Krolicki‚ R.; Burda‚ C.; Zhao‚ C.; Becker. J. Nanosci. Nanotechnol. 2005‚ 5‚ 1408. 8. Li J.; Jin Z. Z. Coordination Chemistry Reviews Accepted proof‚ 2009. 9. Hoffmann‚ M.R.; Martin‚ S.T.; Choi‚ W.Y.;
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Chapter 2 Q5: Explain the term satisfice as it relates to the operations of large corporation. The argument is that today’s large corporations do not aim to maximize profits but instead‚ their aim is to satisfice. The two parts of this idea that we must consider are the following: The position and power of stockholders in today’s corporation as opposed to the position and power of professional management in today’s corporation. Large corporations today are not managed by the owners or the shareholders
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