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Final%20Exam%20-%20BLUE

# Final%20Exam%20-%20BLUE - 20,000)2/3 0.999[60(1,728,000)2/3...

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EMR(Q) = 4,600 – 2Q = 200 + 2Q = MC(Q) Q = 4,400/4 = 1100 C(1,100) = 2,400,000 + 200(1,100) + (1,100)2 = 3,830,000 and is HIGH: P = 5,000 – 1,100 = 3,900 Profit = 3,900(1,100) – 3,830,000 = 460,000 and is LOW: P = 3,000 – 1,100 = 1,900 Profit = 1,900(1,100) – 3,830,000 = -1,740,000 ore: Expected Profit = 0.8(460,000) + 0.2(-1,740,000) = 20,000 d Deviation = {(460,000 – 20,000)2(0.8) + (-1,740,000 – 20,000)2(0.2)}1/2 = 880,000 We have: 4QA + 2QB = 1,850 2QA + 4QB = 2,500 Solving these two equations in two unknowns: QA = 200 and QB = 525. Q = 725. Pricing: PA = 2,350 – 200 = 2,150 and PB = 3,000 – 525 = 2,475 Total Revenue = 2,150(200) – 2,475(525) = 1,729,375 Total Cost C(725) = 800,000 + 500(725) + (725)2 = 1,688,125 Profit = 1,729,375 – 1,688,125 = 41,250 |MRTS| = MPL/MPK = 20/40 > 100/220 = w/r ategy: Move B. Jack, aware of this fact, will choose Move X. The joint outcome will be (55,70), or a payoff of 55 for Jill and 70 for Jack. st move, she will opt for Move A. Jack’s response will be Move Z. The joint outcome will be (65,65), or a payoff of 65 for Jill and 65 for Jack. zero: 1000 – 8Q = 0. Q = 125, and P = 1000 – 4(125) = 500. Profit = 500(125) – [10,000 + 600(125)] = 62,500 – 85,000 = -22,500. 0 – 8Q = 600. Q = 50, and P = 1000 – 4(50) = 800. In this case Profit = 800(50) – [10,000 + 600(50)] = 40,000 – 40,000 = 0. = P = 1000 – 4Q = 600. Q = 100. The firm’s revenue net of variable cost equals the area under the demand curve and above MC: ½ (1000 – 600)(100) H F C A G (200, 200) 1 1 2 2 1 1 1 2 (150, 210) (160, 200) 2 (200, 220) (230, 170) 2 (200, 240) (150, 220) 2 (150, 150) (180, 100) E H G C F H G D E H A G F H G E H B G C F H G D E H MRBlonds = MRBrunettes (1 + 1/(-2.0))(30) = (1 + 1/(-1.5))PBrunettes PBrunettes = 3(15) = 45 G F H 7,000)2/3] + 0.999[60(1,728,000)2/3] 3,190.00 h is current random wealth satisfies 3 = 863,190 = EU(W) 2 = \$1,725,570.57 mum amount he would be willing to reduce his expected wealth to avoid risk, is: 26,299.00 - \$1,725,570.57 = \$728.43 receive a premium which is at least equal to the expected loss: 0 – 27,000) = 0.001(1,701,000) = \$1,701 would be willing to pay is: 728.43 = 2,429.43 20 15 10 20 15 10 5 5 D ATC MC \$ Gizmos (Thousands of Units) C = PQ – ATC(Q) = (P – ATC)Q = (15 – 5)(20,000) = 200,000 = PQ – ATC(Q) = (P – ATC)Q = (12 – 5.50)(26,000) = 169,000 S 20 15 10 5 0 5 10 20 15 P D – PSOld = ½ (12)(12) – ½ (14)(14) = 72 – 98 = - 26 – CSOld = ½ (12)(6) – ½ (14)(7) = 36 – 49 = - 13 TR = 3(12) = 36 S + PS + TR = -13 - 26 + 36 = -3 c urve is P = 100 – ½Q. The firm may extract all consumer surplus with a membership fee equal to ½ (160)(80) = 6,400. its of output into a block, and charge a per unit price = (25 + 10)/2 = 17.50/unit, we have a block price equal to 17.50 m 60 = 1050.00. This block price e eisure. His MRS = - 2 (288/16) = - \$36 per hour of leisure. Confronting a relative price of leisure in terms of income of \$36 per hour, Jose is maximizin

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Final%20Exam%20-%20BLUE - 20,000)2/3 0.999[60(1,728,000)2/3...

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