Economics Homework Help

Economics Homework Help. Assignment 1: Maximizing Profits and Minimizing LossesConsider a supplier of agricultural

Assignment 1: Maximizing Profits and Minimizing Losses

Consider a supplier of agricultural

equipment who is deciding how much of two products should be produced by his firm. You determine what the two products are.

Now create a report that includes a discussion and analysis regarding how such a supplier makes such a determination in order to maximize the firm’s profits. Include in your response:

  • A discussion of exactly what costs are associated with profit maximization.
  • A discussion of the concept of “opportunity cost.”
  • A discussion of the alternative production opportunities.
  • A discussion of the various constraints which firms face in maximizing their economic profit.

In responding to this assignment, quotations, paraphrases, and ideas you get from books or other sources of information should be cited using APA style.

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Economics Homework Help. A. Compute total revenue for each level of output. Fill in the table.B. Compute average and

A. Compute total revenue for each level of output. Fill in the table.

B. Compute average and

marginal revenue for each level of output. Fill in the table. (Remember to compute marginal revenue between successive level of output.)

C. Explain why for a perfectly competitive firm, AR = MR= p.

D. Plot the TR,MR, AND AR curves on a scale diagram. What is the slope of the TR curve?

Consider the following table showing the various rev -ence concepts for Dairy Treat Inc ., a perfectly competi-tive firm that sells milk by the litre . Suppose the firmfaces a constant market price of $2 per litre .TotalAverageMarginalPriceRevenueRevenueRevenue( P )Quantity( IR )( AR )( MR )$2150217522002225250a . Compute total revenue for each level of output . Fillin the table .b. Compute average and marginal revenue for eachlevel of output . Fill in the table . ( Remember tocompute marginal revenue between successive lev-els of output . )C . Explain why for a perfectly competitive firm , AR -MR = P .d . Plot the IR , MR, and AR curves on a scale dia -gram . What is the slope of the IR curve ?”

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Economics Homework Help. I am looking at #4c specifically—I did not think I could find the profits and producer surplus at the profit

I am looking at #4c specifically—I did not think I could find the profits and producer surplus at the profit

maximizing level of output without a specific marginal revenue value. Do you think the problem is referring to part 4b, where the marginal revenue is $900? Do you think it is merely asking for definitions?

X AVCa) Draw out the short run supply curve for Omer’s firm.b) If the market price of the product is $5,000, what is the firm’s producer surplus? If the market priceof the product is $3,400, what is the firm’s producer surplus? If the market price is $1,700 what is thefirm’s producer surplus?c) Is producer surplus same as profit? Explain.4) Raquel runs a perfectly competitive firm selling cupcakes. Her firm has the following cost functions:Total cost: TC(q) = $10,000 + $100q + $10q2,Marginal cost: MC(q) = $100 + $20q, where q is the number of cupcakesa) What is the Average Total Cost, Average Fixed Costs and Average Variable Cost functions? Drawout the three curves along with the marginal cost curve on one graph.b) If Raquel’s firm faces a market price of $900 per unit, how much will she produce at the profitmaximizing point?c) In the short run, what are profits and producer surplus at the profit maximizing level of output?5) Jean- Baptiste makes homemade pastries. His fixed input in the short run is the mixer. In the long run,he can choose a spatula, hand mixer, or a stand mixer. The following table shows the short-run fixedcost (FC) and variable cost (VC) of weekly production using each different level of the capital input.FC ($)VC ($)FC ($)VC ($)FC ($)VC ($)Output ofI spatulaspatulahandhandstandstandpastriesmixermixermixermixermixermixer20020020020010040020020020080040020010050020001000200250

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Economics Homework Help. Suppose that the quantity demanded is a linear function of price, and it has a negative slope. Average cost is a

 Suppose that the quantity demanded is a linear function of price, and it has a negative slope. Average cost is a

constant cost function. Profit equals total revenue minus total cost.

(a) Give algebraic expressions for quantity demanded and for average cost.

(b) Find expressions for average revenue and total revenue as a function of quantity, and sketch the graphs of both. Find a quantity where total revenue is at a maximum.

(c) Find expressions for total cost as a function of quantity. Sketch the total cost function into the graph with total revenue.

(d) Find expressions for profit as a function of quantity. What is its functional form? Sketch the profit function to total revenue and total cost functions. 

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Economics Homework Help. 1. Suppose an economy is experiencing higher inflation rate as well as a recessionary gap. Using the policy

1. Suppose an economy is experiencing higher inflation rate as well as a recessionary gap. Using the policy

reaction function, explain whether the Reserve bank will increase or decrease the interest rate?

2. Explain the effect of an increase in imports on the equilibrium output and inflation in the AD-AS model. Carefully distinguish between the short run and the long run. Would this affect the potential output? Why/Why not?

3. Suppose capital in Country A increases from 100 in 2017 to 200 in 2018. Explain the effect of this increase on real GDP, real GDP per capita and average labour productivity

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Economics Homework Help. Suppose you send specialty aluminum products from a mill to two different markets.You think that demand may be

 Suppose you send specialty aluminum products from a mill to two different markets. You think that demand may be

different in the markets and your consultant (an SAU MBA grad) agrees. She has measured demand in the markets as:

Qa = 10,000 – 40*Pa  and  Qb = 8000 – 60 Pb

where Qa is the quantity in market a, Qb is the quantity in market b, and the prices are appropriate to the two markets. Assume that marginal cost of production is $75 per unit and that buyers pick up the product at your mill, so transportation is no cost to you.

a. Suppose that you do not price discriminate. What is the optimal price, and quantity for the markets? What are your total revenue and profit? b. If your goal is to maximize your profits, what are the optimal prices, quantities, revenues, and profits in the markets. Is this an increase in total profit? If so, by how much.

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