1.
Award: 10 out of 10.00 points
Southwest Airlines begins a 'Bags Fly Free' campaign, chargingno fees for a first and second checked
bag.
This situation best represents
References
Worksheet
LearningObjective:
0107Identifyand
applysixprinciples
ofeffectiv
Award: 10 out of 10.00 points
A consumer has $300 to spend on goods X and Y. The market prices of these two goods are Px = $15
and Py = $5.
a. What is the market rate of substitution between goods X and Y?
3
b. In the graph below: 1) Illustrate the consum
1.
Award: 10 out of 10.00 points
Southwest Airlines begins a 'Bags Fly Free' campaign, chargingno fees for a first and second checked
bag.
This situation best represents producerproducerrivalry
.
References
Worksheet
LearningObjective:
0107Identifyand
app
Quantitative Demand Analysis
3-2
Overview
I. The Elasticity Concept
Own Price Elasticity
Elasticity and Total Revenue
Cross-Price Elasticity
Income Elasticity
II. Demand Functions
Linear
Log-Linear
III. Regression Analysis
3-3
The Elasticity Concept
How
The Production Process and Costs
5-2
Overview
I. Production Analysis
Total Product, Marginal Product, Average Product
Isoquants
Isocosts
Cost Minimization
II. Cost Analysis
Total Cost, Variable Cost, Fixed Costs
Cubic Cost Function
Cost Relations
III. Mul
1.
Award: 10 out of 10.00 points
A firm can manufacture a product according to the production function:
Q = F(K,L) = K3/4L1/4.
a. Calculate the average product of labor, APL, when the level of capital is fixed at 81 units and the firm
uses 16 units of lab
1.
Award: 10 out of 10.00 points
Answer the following questions based on the accompanying diagram:
Price($)
20
18
16
14
12
10
8
6
4
2
D
1
2
3
4
5
6
7
Quantity
Instructions:Alldollarresponsesshouldbeenteredaswholenumbers.Includeaminus()signforallnegative
a
1.
Award: 10 out of 10.00 points
The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a
substitute good that it markets under the name Y. Good Y is an inferior good.
a. How will the demand for good X change if