| Quantity | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Marginal Cost | 50 | 40 | 60 | 80 | 100 | 120 | 140 |
a. If the price of the good is $100, how many units would this firm produce? How many would be produced in the market?
b. If the price of the good is $120, how many units would this firm produce? How many would be produced in the market?
c. If the price of the good is $140, how many units would this firm produce? How many would be produced in the market?
d. Suppose the table below gives the points along the market demand curve for this good.
| Price | 180 | 160 | 140 | 120 | 100 | 80 |
| Quantity Demanded | 300 | 400 | 500 | 600 | 700 | 800 |
Given all the information above, what will be the equilibrium price and quantity in this perfectly competitive market?
e. Now suppose that each unit produced by these firms creates waste which negatively affects others in the economy by an amount equal to $40 for each unit produced. If firms in this market considered the social costs of production when deciding output, rather than the private costs, what would be the equilibrium price and quantity?
f. How does this price and quantity compare to the outcome when only private costs were considered?
g. List 2 ways the government could get these firms to consider the social costs of production when deciding their output levels.
| Price | 15 | 14 | 13 | 12 | 11 | 10 | 9 | 8 |
| Quantity Demanded | 10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 |
The market supply contains the following points:
| Price | 15 | 14 | 13 | 12 | 11 | 10 | 9 | 8 |
| Quantity Supplied | 70 | 65 | 60 | 55 | 50 | 45 | 40 | 35 |
a. What is the equilibrium price and quantity?
b. Now suppose each product purchased by these consumers also creates a positive externality for others of $3. If these consumers were to consider the social benefits of their purchases when deciding to buy, rather than just the private benefits, what would be the new equilibrium price and quantity?
c. How does this new equilibrium compare to the previous equilibrium when only private benefits were considered?
d. List 2 ways the government could get these consumers to consider the social benefits of their purchases when deciding to buy.
In: Economics
Table below presents information on three US Treasury bonds:
|
Maturity |
Coupon Rate |
Price (per $100 of Face value) |
|
6 months |
1% |
99.75 |
|
12 months |
2% |
100.5 |
|
18 months |
1.5% |
98.5 |
Use this information to answer the following questions:
In: Finance
Table below presents information on three US Treasury bonds:
|
Maturity |
Coupon Rate |
Price (per $100 of Face value) |
|
6 months |
1% |
99.75 |
|
12 months |
2% |
100.5 |
|
18 months |
1.5% |
98.5 |
Use this information to answer the following questions:
Suppose that US Treasury plans to issue 5% coupon bonds, which pay semi-annual coupons. The bonds will mature in 18 months. What is the price of these bonds?
In: Finance
| Fixed costs | 100,000 | Compute: | ||
| Selling price per unit | 100 | Required sales in units to earn desired net income | ||
| Variable costs per unit | 20 | Required sales in $$ to earn desired net income | ||
| Desired net income | 50,000 | |||
| Fixed costs | 200,000 | Compute: | ||
| Selling price per unit | 500 | Break even in units | ||
| Variable costs per unit | 100 | Break even in $$ | ||
| Desired net income | 100,000 | Required sales in units to earn desired net income | ||
| Required sales in $$ to earn desired net income | ||||
| Fixed costs | 100,000 | Compute: | ||
| Contribution margin ratio | 40% | Break even in $$ | ||
| Desired net income | 200,000 | Required sales in $$ to earn desired net income | ||
| Fixed costs | 400,000 | Compute: | ||
| Variable costs as a % of sales | 20% | Break even in $$ | ||
| Desired net income | 500,000 | Required sales in $$ to earn desired net income | ||
| Fixed costs | 300,000 | Compute: | ||
| Variable costs as a % of sales | 20% | Break even in $$ | 500,000 | |
| Current net income | 500,000 | Current sales in $$ | 1 ,000,000 | |
| Desired net income | 1,000,000 | Required sales in $$ to earn desired net income |
In: Accounting
What price do farmers get for their watermelon crops? In the third week of July, a random sample of 41 farming regions gave a sample mean of x = $6.88 per 100 pounds of watermelon. Assume that σ is known to be $1.90 per 100 pounds.
(a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop. What is the margin of error? (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
(b) Find the sample size necessary for a 90% confidence level with
maximal error of estimate E = 0.31 for the mean price per
100 pounds of watermelon. (Round up to the nearest whole
number.)
farming regions
(c) A farm brings 15 tons of watermelon to market. Find a 90%
confidence interval for the population mean cash value of this
crop. What is the margin of error? Hint: 1 ton is 2000
pounds. (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
In: Statistics and Probability
What price do farmers get for their watermelon crops? In the third week of July, a random sample of 45 farming regions gave a sample mean of x = $6.88 per 100 pounds of watermelon. Assume that σ is known to be $1.90 per 100 pounds.
(a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop. What is the margin of error? (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
(b) Find the sample size necessary for a 90% confidence level with
maximal error of estimate E = 0.31 for the mean price per
100 pounds of watermelon. (Round up to the nearest whole
number.)
farming regions
(c) A farm brings 15 tons of watermelon to market. Find a 90%
confidence interval for the population mean cash value of this
crop. What is the margin of error? Hint: 1 ton is 2000
pounds. (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
In: Statistics and Probability
What price do farmers get for their watermelon crops? In the third week of July, a random sample of 41 farming regions gave a sample mean of x = $6.88 per 100 pounds of watermelon. Assume that σ is known to be $1.96 per 100 pounds.
(a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop. What is the margin of error? (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
(b) Find the sample size necessary for a 90% confidence level with
maximal error of estimate E = 0.41 for the mean price per
100 pounds of watermelon. (Round up to the nearest whole
number.)
farming regions
(c) A farm brings 15 tons of watermelon to market. Find a 90%
confidence interval for the population mean cash value of this
crop. What is the margin of error? Hint: 1 ton is 2000
pounds. (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
In: Statistics and Probability
What price do farmers get for their watermelon crops? In the third week of July, a random sample of 45 farming regions gave a sample mean of x = $6.88 per 100 pounds of watermelon. Assume that σ is known to be $1.98 per 100 pounds.
(a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop. What is the margin of error? (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
(b) Find the sample size necessary for a 90% confidence level with
maximal error of estimate E = 0.41 for the mean price per
100 pounds of watermelon. (Round up to the nearest whole
number.)
64 farming regions
(c) A farm brings 15 tons of watermelon to market. Find a 90%
confidence interval for the population mean cash value of this
crop. What is the margin of error? Hint: 1 ton is 2000
pounds. (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
In: Statistics and Probability
What price do farmers get for their watermelon crops? In the third week of July, a random sample of 45 farming regions gave a sample mean of x = $6.88 per 100 pounds of watermelon. Assume that σ is known to be $1.94 per 100 pounds.
(a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop. What is the margin of error? (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
(b) Find the sample size necessary for a 90% confidence level with
maximal error of estimate E = 0.45 for the mean price per
100 pounds of watermelon. (Round up to the nearest whole
number.)
farming regions
(c) A farm brings 15 tons of watermelon to market. Find a 90%
confidence interval for the population mean cash value of this
crop. What is the margin of error? Hint: 1 ton is 2000
pounds. (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
In: Statistics and Probability
What price do farmers get for their watermelon crops? In the third week of July, a random sample of 44 farming regions gave a sample mean of x = $6.88 per 100 pounds of watermelon. Assume that σ is known to be $1.96 per 100 pounds.
(a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop. What is the margin of error? (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
(b) Find the sample size necessary for a 90% confidence level with
maximal error of estimate E = 0.39 for the mean price per
100 pounds of watermelon. (Round up to the nearest whole
number.)
farming regions
(c) A farm brings 15 tons of watermelon to market. Find a 90%
confidence interval for the population mean cash value of this
crop. What is the margin of error? Hint: 1 ton is 2000
pounds. (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
In: Statistics and Probability