Questions Uploads
At what level of output does
marginal cost equal marginal revenue?
10
20
30
40
What is
the marginal cost of producing the fifth unit?
40
30
5
0
The demand for good X has been estimated to be ln Qxd = 100 – 5 ln PX + 2 ln PY + 4 ln M. The cross-price elasticity of demand between goods X and Y is:
2.
–5.
−2.
There is insufficient information needed to find the elasticity of good X.
A firm produces output according to a production function:
Q = F(K,L) = min {5K,5L}.
a. How much output is produced when K = 2 and L = 3?
b. If the wage rate is $50 per hour and the rental rate on capital is $30 per hour, what is the cost-minimizing input mix for producing 10 units of output?
Capital:
Labor:
c. How does your answer to part b change if the wage rate decreases to $30 per hour but the rental rate on capital remains at $30 per hour?
| Capital increases and labor decreases. |
| Capital and labor increase. |
| Capital decreases and labor increases. |
| It does not change. |
If Starbucks’s marketing department estimates the income elasticity of demand for its coffee to be 1.45, how will the prospect of an economic bust (expected to decrease consumers’ incomes by 6 percent over the next year) impact the quantity of coffee Starbucks expects to sell?
Instruction:Round your response to 2 decimal places.
It will change by percent.
Please show work and solution to the above question. thanks
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