Economic Homework question?
a) In a competitive market the equilibrium price is equal to the marginal cost, so P=1. You then plug this into the inverse demand function and get 1=3-Q/16,000. After some algebra you get Q=32,000. P=1, Q=32,000 b)In a monopoly, the firm sets the price to maximize profits (profits=revenue - cost). R= P*Q, C= $1*Q, so Profits = P*Q - 1*Q. Then you plug in the inverse demand function, P=3-Q/16,000, so you only have two variables, Profits and Q. The equation should be Profits = 3Q - Q^2/16,000 - 1*Q. To find the maximum profit, take the derivative of profits with respect to Q, which should be 3 - 2Q/16,000 -1. When you set this equation equal to zero and solve for Q, you get Q=16,000. Now you plug this Q into the inverse demand function and get P=2. P=2, Q=16,000
Economics homework help questions?
A new health kick has swept the nation making everyone want to exercise and be healthy. How does this affect the market for Pilates Workout DVDs? B. increase equilibrium quantity, increase equilibrium price. That is because there is a change in taste resulting in an increase in demand thereby causing the demand curve to shift upwards to the right. This will cut the supply curve at a higher equilibrium quantity and price. __________________ Coca-Cola has gone on sale. You can buy a case for only a dollar. What happens to the market for Pepsi? D. decrease equilibrium quantity, decrease equilibrium price. The products are close substitutes. The demand curve for Pepsi will shift downwards to the left as more people switch from buying Pepsi to buying Coke. This downward shift will cut the supply curve at a lower equilibrium quantity and price. _____________________ OPEC dramatically reduces the availability of crude oil. How does this affect the market for gasoline? B. decrease equilibrium quantity, increase equilibrium price. Gasoline is made from the refinement of crude oil. By reducing the availability of crude oil, the supply curve for gasoline shifts upwards to the left. This cuts the demand curve at a lower equilibrium quantity and higher equilibrium price. ____________________ The government decides to subsidize agriculture (support it with money). How does this affect the market for corn? A. increase equilibrium quantity, decrease equilibrium price. A subsidy increases profit margins and attracts more suppliers to the industry. Corn is an agricultural product. A subsidy increases supply and shifts the supply curve downwards to the right. This cuts the demand curve at a higher equilibrium quantity and lower equilibrium price.
I need help on my economics homework. The question is, What are the Fixed Costs and Variable Costs for a car wash business? Is it likely to experience economies of scale?
Thanks for being honest that this is for homework.Fixed costs are things that do not change based on your number of customers : rent, equipment, labor costs for a cashier(there for set hours even if no one shows up).Variable costs are directly related to your number of customers : soap, water, electricity to run the machines (assuming automatic car wash), or labor if a manual car wash.Economies of scale refer to businesses that get cheaper to run (per customer) as your number of customers increases. For an automatic car wash, variable costs are low but once it's running at full capacity, you can't really add more customers. For a manual, your main cost is labor, which doesn't get cheaper with scale.
Economics Homework Question?
If she spends her entire budget, Betsy can afford 74 peaches and 9 pineapples. She can also just afford 14 peaches and 21 pineapples. The price of peaches is 17 cents. what is the price of pineapples in cents?
I'm stuck on some questions for my Economics homework?
GDP = Gross Domestic Product. This is the measure of everything the economy produces in a country. Think of it as the speedometer of the economy, the higher the number, the faster the economy is moving (generally) Too many dollars chasing too few goods: Means that there is inflation. Prices are set by a balance of supply (what people are willing to make and sell) and demand (what people are willing to buy). Whenever these are out of balance, we see a change in price. This is true for any one product (shoes, chewing gum) and it is true for all goods together (called aggregate supply and demand). Whenever there is too many dollars (dollars represent consumer demand) chasing too few goods (representing producer supply) the price of everything goes up. We call this general rise in prices "Inflation." Macro-Economics is the study of the big picture in economics. Macro is more interested in the entire economy, or an entire industry (all of the businesses involved in auto making for example). Micro is interested in each individual company. The goals of Macroeconomic study: full employment, stability, and economic growth Full employment: The largest number of people with jobs Stability: Limit the wild economic swings up and down, and keep the economy as a whole on an even keel. Growth: Making the economy grow means adding aggregate demand and aggregate supply (hopefully in equal measures to keep inflation from growing) I know these answers sound like a foreign language, but this is as simple as I can make it. Hope it helps, Good luck!
This is a homework question in my economics class that I need help with.?
In a perfectly competitive market, no individual supplier has enough market power to influence the overall supply of the market. The firm is a price taker. The market demand curve for the firm is a horizontal line, because no matter how much the firm wants to supply, the price is constant. A monopolist has control of the entire market, and will face a downward sloping demand curve. The monopolist is a price maker. The higher price a monopolist charges, the less the monopolist will sell.
Econ homework questions please?
well....what year are we talking about here. Im guessing ur American, and this us coming from around the 1920s? Where the Republican Economic Policy was 100% lassaez Faire? 13. Im not sure, i know it was huge but i dont think it was huge enough to be a Monopoly. Today, it is definately not a monopoly, but as i said, u didnt specify what decade were talking about here. 14. c. If theres extra costs, business owners who do what they want arent exactly going to make more, or just as much product, but make less and charge more.
Economics HomeWork Question: Opportunity Costs?
Opportunity cost CAN be measured! It applies to both labour and capital Whether payments are made with cash is irrelevant The answer is 3. Economic profit is different from accounting profit in that it takes into account the opportunity cost. For example you own a warehouse and decide to use it to run your business, the accounting/commonly use profit is how much you make minus the costs of using the building (water, electricity etc)... However the economic profit would take into account how much u could've made if you'd rented the warehouse out to another business... If the rent would've been higher you've actually made an economic loss despite making an accounting profit.
Where can I get help with my economics homework?
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