9. A competitive firm that produces 500 units of widgets in which its marginal revenue is $50 and its marginal cost is $40 and they are making $40,000 in profits and the profit maximizing level of output is 600 units of widgets where marginal revenue and marginal cost are equal at $50 and profits are $80,000. The firm is currently producing 500 units of widgets but wants to reach the profit maximizing level of output of producing 600 units of widgets. As an economist, what would you advise the firm to do?

a. produce more widgets.

b. produce less widgets.

c. do nothing

suppose that the inverse demand function, marginal revenue, marginal cost and total cost for a gizmo product produced by a monopolist are as follows

p=100 -2Q

MR= 100-4Q

MC=2

TC=10+2Q

a. Find the monopolist's profit maximizing output and price.

b. Calculate the monopolist's profit/loss ,if any

c. What is the Lerner Index for this industry

Unoccupied seats at the Cardinal’s football stadium causes the football team to lose revenue. The Cardinal’s owner wants to estimate the mean number of unoccupied seats per game over the past few years. To accomplish this, the records of 225 games are randomly selected and the number of unoccupied seats is noted for each of the sampled games. The sample mean is 11.6 seats and the sample standard deviation is 4.1 seats. x-=

Unoccupied seats at the Cardinal’s football stadium causes the football team to lose revenue. The Cardinal’s owner wants to estimate the mean number of unoccupied seats per game over the past few years. To accomplish this, the records of 225 games are randomly selected and the number of unoccupied seats is noted for each of the sampled games. The sample mean is 11.6 seats and the sample standard deviation is 4.1 seats. n – 1 =

The owner of Showtime Movie Theaters would like to estimate weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks are as below:

Following are the regression results for the data using Excel. In this problem, you will be interpreting the regression results.

Use this table to answer the following questions:

1) yˆ=83.23+2.29*Newspaper Advertising+1.30*TV Advertisingy^=83.23+2.29*Newspaper Advertising+1.30*TV Advertising

2) Interpret the coefficient of TV Advertising.

3) Interpret the coefficient of Newspaper Advertising.

4) What is the estimate of the weekly gross revenue for a week when $3500 is spent on TV advertising and $1800 is spent on newspaper advertising?

5) Which variables have a statistically significant relationship with the dependent variable at the 1% level? (Use three decimals on the p value)

6) What is the 99% confidence interval estimate for the coefficient of TV Advertising?

7) What would be average weekly gross revenues if nothing is spent on TV and newspaper advertising?

8) At what level (probability) would the relationship between the dependent variable and the Newspaper Advertising will NOT be statistically significant? (Hint: think of the p value)

How does the price elasticity of demand impact the firm’s pricing decisions and revenue growth?

How does the price elasticity of demand impact a firm’s pricing decisions and revenue growth?

From the perspective of a bureaucrat, which government accounting method is more feasible for each revenue source? Cash Basis, Modified Accrual or Full Accrual. Explain your response. The key to your response should be stability or volatility of the revenue source over time. Further, you should consider whether the revenue source can be broken down into components parts. For example, user fees collected froma street meter may differ in stability from user fees collected at a toll station. In addition, you should realize that the amount and percentage of revenues collected from each source can vary from year to year depending on any number ofsocial, political and economic factors.In anyevent, be specific and justify your response.

A. State Income Taxes:

B. Public Utility Fees:

C. Donations:

D. Motor Fuel Taxes:

E. Licenses and Fees:

F. Sales Taxes:

G. Gaming Fees (Casinos):

H. Block Grants:

I. PropertyTaxes:

Taxes that are deducted from workers’ paychecks are referred to as

paystub revenue.

income seizures.

excise taxes.

payroll taxes.

payday taxes.

P. 4-2 For each of the following indicate the amount of revenue that Beanville should recognize in its 2017 (1) government-wide statements and (2) governmental fund statements. Provide a brief justification or explanation for your responses. The state in which Beanville is located collects sales taxes for its cities and other local governments. The state permits small merchants to remit sales taxes quarterly. The state sales tax rate is 6 percent. In December 2016, city merchants collected $50 million in sales taxes that they remitted to the state on January 15, 2017. The state, in turn, transferred the taxes to the city on February 15, 2017. In December 2016, the federal government awarded Beanville a reimbursement grant of $500,000 to train law-enforcement agents. The city had applied for the grant in January of that year. The city may incur allowable costs any time after receiving notification of the award. In 2017, the city incurred $400,000 in allowable costs and was reimbursed for $350,000. It was reimbursed for the $50,000 balance in February 2018. In January and February 2018, it incurred the remaining $100,000 in allowable costs and was reimbursed for them in April 2018. In December 2016 the city levied property taxes of $1 billion for the calendar year 2017. The taxes are due June 30, 2017. The city collected these taxes as follows: December 2016 $ 56 million January 1, 2016, to December 31, 2016 $ 858 million January 1, 2017, through March 31, 2017 ($18 million per month) $ 54 million Total $ 968 million It estimates the balance of $32 million would be uncollectible. In addition, in the period from January 1 through February 28, 2017, the city collected $16 million in taxes that were delinquent as of December 31, 2016. In the period March 1 through June 30 2017, the city collected $8 million of taxes that were also delinquent as of December 31, 2016. In December 2017 Beanville sold a city-owned warehouse to a private developer. Sales price was $4.2 million. The warehouse had cost $4 million when it was acquired 10 years earlier. It had an estimated useful life of 40 years (with no salvage value). In December 2017, Beanville's city-owned radio station held its annual fund drive. A local business offered to match all pledges made on December 2, 2017, up to $50,000, assuming that the amount pledged was actually collected. Based on past experience the city estimates that 90 percent of the pledges will actually be collected. By year-end 2017, the city had collected $25,000 of the pledges, and in January and February it collected an additional $15,000. It received $25,000 of the matching funds on February 15, 2018. Respond with respect only to the $50,000 in matching funds.