Question 1 The demand curves for steak, eggs, and hot dogs are given in the table below. The current price of steak is $5. The price of eggs is...
This question has been answered
Question

Hi, can you explain in details about this question.Question 1

The demand curves for steak, eggs, and hot dogs are given in the table below. The current price of steak is $5. The price of eggs is $2.50, and the price of hot dogs is $0.75. Fill in the remaining columns of the table using this information. Indicate which goods are substitutes and which goods are complements.

Screenshot 2021-01-12 211558.png


Question 2

a) Is it possible to have diminishing returns to a single factor of production and constant returns to scale at the same time? Discuss.


b) Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you about the nature of the production function? What does each of these shapes tell you about the MRTS? 


Question 3

a) A firm faces the following average revenue (demand) curve:  P = 120 − 0.02Q

where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. 


i. What is the level of production, price, and total profit per week?


ii. If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and profit? 


b) The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Q = 250 - 10P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee. World producers can harvest and ship coffee to U.S. distributors at a constant marginal (= average) cost of $8 per pound. U.S. distributors can in turn distribute coffee for a constant $2 per pound. The U.S. coffee market is competitive. Congress is considering a tariff on coffee imports of $2 per pound. 


i. If there is no tariff, how much do consumers pay for a pound of coffee? What is the quantity demanded?


ii. If the tariff is imposed, how much will consumers pay for a pound of coffee? What is the quantity demanded?


iii. Calculate the lost consumer surplus.


iv. Calculate the tax revenue collected by the government.


v. Does the tariff result in a net gain or a net loss to society as a whole?

Answered by Expert Tutors

a. Fusce dui lectus, c

dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Do
Step-by-step explanation

m risu

s a molest

20210115_075913.jpg

20210115_075837.jpg


congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pel


at, ul

ur laoree

at, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consecte

cingec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices



et, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui le

sum dolor sitacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fuscemolestie consequongue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor


ec fac

rem ipsum

facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, d

nec facilisis.

sus ante, dapibus a molesl


ongue vel laoreet ac, dic

e vel laoreet a


inia pulvinar to

ec aliquet. Lore

ipsum dolo

m rilesti

et, consectetur adipiscing elit. Namx

ctum vitae odio. Donec al

m ipsum dolor sit amet, consectetur adipiscing elit.

, dictum vitae odio. Donec aliquet. Loor ne


Donecmolestie consequat, ultrices ac m

icitur l

a. Fusce dui lectus, congue



, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing

Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac m

xec facat, ultrices ac magna. Fusce

itur laoreet. Nam risu, ultrices ac matdictum v,x

a molesti,a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consFrisus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus,c

ceec facilisis. Petdictum v,

a molestiec ftesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue ve

Fusce duitce dui lectus, co

xce dui lectus, co


m risus ante, datllentesque dapibus efficitur laoreet. Nam risus

xat, ultrices ac magna. Fusce duim risus an

ng elit. Nam lacinia pulvinar tortor nec

iscing el

ce dui lectus, c


ec fac

rem ipsum

iscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus

entesque dapibus,e vel laoreet ac, dictum vit


m risus ante, dapibus a molestie co

Donec aliquet. Litur


consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet

entesque dapibusceFusce dui lectus, congue vel l


m risus ante, dapibus a molestie co

molestie consequnec




s a molestie consequat, ultrices ac magn

ur laoreet. Nam risus ante, dapibus af



sque dapibus efficitur laoreet. Nam risus ante, dapibus

ipsum dolor sit amet, consectetur adipi

rem ips

gf




sque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat

ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lore

2 Attachments
20210115_075837.jpg
jpg
20210115_075913.jpg
jpg
The student who asked this found it Helpful
Overall rating 100%

"Thank you!"

Get unstuck

443,297 students got unstuck by Course
Hero in the last week

step by step solutions

Our Expert Tutors provide step by step solutions to help you excel in your courses