Questions
A monopoly faces market demand Q = 30−P and has a cost function C(Q) = Q^2...

A monopoly faces market demand Q = 30−P and has a cost function C(Q) = Q^2

(a) Find the profit maximizing price and quantity and the resulting profit to the monopoly.

(b) What is the socially optimal price? Calculate the deadweight loss (DWL) due to the monopolist behavior of this firm. Calculate consumer surplus (CS) and producer surplus (PS) given the profit maximizing price.

(c) Assume that the government puts a price ceiling on the monopolist at P =22. How much output will the monopolist produce? What will be the profit of the monopolist? Calculate CS, PS, and DWL.

(d) Assume that the government put a price ceiling on the monopolist in order to maximize the total (i.e. consumer plus producer) surplus. What price ceiling should it choose? How much output will the monopolist produce at this price ceiling? What will the profit of the monopolist be? What is the DWL?

In: Economics

Why wage rates of all types of labor are lower in India and Pakistan than Saudi...

Why wage rates of all types of labor are lower in India and Pakistan than Saudi Arabia?

In: Economics

What are the determinants of demand for labor and supply of labor? How is the equilibrium...

What are the determinants of demand for labor and supply of labor? How is the equilibrium wage rate determined in a labor market? Why a janitor gets lower wage than a heart surgeon? Why wage rates of all types of labor are lower in India and Pakistan than Saudi Arabia?

In: Economics

Process equipment is purchased in a chemical industry in 2020 for OMR 102000 for an expected...

Process equipment is purchased in a chemical industry in 2020 for OMR 102000 for an expected service life of 3 years. Original salvage value was estimated to be OMR 21000 at the end of service life. Prepare a table showing the depreciation cost and book value for each year by using the following depreciation methods.
a) Straight line method
b) Declining balance method
c) Double declining balance method
d) Sum of the years digit method
e) MACRS method using half year convection (Refer the fixed percentage factor table for applicable year)

##all the answers must be perfect without any decimal place

In: Economics

You are responsible for managing a performance-based advertising campaign for your company that provides Indian cuisine...

You are responsible for managing a performance-based advertising campaign for your company that provides Indian cuisine cooking classes that cost $100 per student. You have a budget of $300 per day. The search terms you decide to bid on are cooking classes and Indian cooking classes. You initially allocate $200 per day to the first campaign and $100 to the second. Over time you realise that “cooking classes” generates on average 500 clicks per day resulting in sales of $5000. “Indian cooking classes” generates on average 100 clicks resulting in sales of $3000. Which campaign would appear to be the most effective? Calculate the CPC and ROI for each campaign to justify your response. Feel free to use your computer or a calculator to help you work out the answers.

In: Economics

A person planned to start a business venture in Muscat and decided to borrow a loan...

A person planned to start a business venture in Muscat and decided to borrow a loan of OMR 52000 from Bank Muscat at an interest rate of 18 % per annum. Determine the following
a) Simple interest and total amount due after 12 years if no intermediate payments are made and interest is compounded annually.
b) Compound interest and total amount due after 9years if no intermediate payments are made and interest is compounded annually.
c) Compound interest after 9 years if the interest is compounded after 3 months.
d) Difference between simple interest and compound interest after 8 years.
e) Nominal and effective interest rate if the interest is compound after 2 months.

##all the answers must be perfect without any decimal place

In: Economics

Jeff has a monthly income of $400, which he spends each month on dinners (which cost...

Jeff has a monthly income of $400, which he spends each month on dinners (which cost $20 each) and movies. He finds that he maximizes his utility by spending half his income on dinners and ha lf on movies. His marginal rate of substitution at this bundle of goods is 0.4 (measured with dinners on the horizontal axis).

a. Given this information, what is the price of movies?

b. Draw Jeff's budget constraint and indifference curve at this optimal bundle. Label both axes appropriately.

c. Write an equation—in slope- intercept form—for Jeff's budget constraint.

d. What is the opportunity cost, in terms of dinners, of an additional movie? e. Now suppose the price of dinners changes to $25. Show on your diagram how the budget constraint will change. Can Jeff still afford his initial bundle from part b?

In: Economics

Question (2) Consider a country that imports a good from abroad. For each of following statements,...

Question (2)

Consider a country that imports a good from abroad. For each of following statements, say whether it is true or false. Explain your answer.

  1. “The greater the elasticity of demand, the greater the gains from trade.”
  2. “If demand is perfectly inelastic, there are no gains from trade.”
  3. “If demand is perfectly inelastic, consumers do not benefit from trade.”

In: Economics

As a detective seeking evidence [need to know investor]: How well does Ford Motor focus and...

As a detective seeking evidence [need to know investor]:

How well does Ford Motor focus and capitalize on individual differences?

In: Economics

How did Reagan’s policies reinforce the views and stereotypes that many white American had about social...

How did Reagan’s policies reinforce the views and stereotypes that many white American had about social programs and the welfare state? What did the Reagan administration do to promote those stereotypes and beliefs? What stopped Democrats from being able to refute these stereotypes? What beliefs and stereotypes from this era still exist today?

In: Economics

1. What was the Embargo Act of 1807? Why do you think President Jefferson and others...

1. What was the Embargo Act of 1807? Why do you think President Jefferson and others thought it was necessary to sign this act into law?

2. What similarities between the Embargo Act and the current economic tension between the U.S. and China do you see? How do they differ?

3. What lessons can we take from the failed Embargo Act as the threat of a trade war looms near?

In: Economics

Question (1) The nation of Textilia does not allow imports of clothing. In its equilibrium without...

Question (1)

The nation of Textilia does not allow imports of clothing. In its equilibrium without trade, a T-shirt costs $20, and the equilibrium quantity is 3 million T-shirts. One day, after reading Adam Smith’s The Wealth of Nations while on vacation, the president decides to open the Textilian market to international trade. The market price of a T-shirt falls to the world price of $16. The number of T-shirts consumed in Textilia rises to 4 million, while the number of T-shirts produced declines to 1 million.

  1. Illustrate the situation just described in a graph. Your graph should show all the numbers.
  2. Calculate the change in consumer surplus, producer surplus, and total surplus that results from opening up trade.

             (Hint: Recall that the area of a triangle is 0.5 × base ×height.)

In: Economics

Assume that the market of medical supplies is in perfect competition. In early April, Trump administration...

Assume that the market of medical supplies is in perfect competition.

In early April, Trump administration proposed export bans on medical supplies. Suppose America is large economy and large exporter of medical goods.

Analyze the impact of the export bans on comsumer surplus, producer surplus, government revenue, and national welfare in the US. Use a graph to assist your analysis.

In: Economics

Is Ford Motor effective at developing and manging external partnerships? [As a need to know investor:...

Is Ford Motor effective at developing and manging external partnerships? [As a need to know investor: Please have 200 words or more][Will give thumbs up]

In: Economics

Does Ford Motor employ sophisticated forecasting methods and monitor their performance? [As a need to know...

Does Ford Motor employ sophisticated forecasting methods and monitor their performance? [As a need to know investor: Please have 200 words or more][Will give thumbs up]

In: Economics