Economics Homework Solutions

Efficiency Frontier, Profit Max, Elasticity

I'm not sure where to start to frame out any of these problems. I need some guidance as to teh right formulas.

Just need clarification to the questions in the body of the problem

I am having issues with the calculations for elasticity and profit and revenue max.

Economics

Do you feel that firms should take the "long" view, or the "short" view in regards to economics?

Slope of Budget Line

The Price of Good X is $5, Good Y is $8. Money Income is $240- a)What is the Slope of Budget Line? b)When consumer is maximizing utility, what is the marginal rate of Substitution equal to? c)When the consumer is maximizing utility, how much they are spending? d) what is the demand curve, when good is giffen?

Productivity

Can you please explain the relationship between productivity and Starbucks?

Price Elasticity of Demand

Can you please explain the correlation between Price elasticity of demand and Starbucks?

Short/Long Run Equilibriam

I am attaching the problem. You can solve it in the same document.

Constant Cost

What is the significance of the information that this is an constant cost industry? What assumption gives rise to a U shape Long run Average cost curve and Short run Average cost curve for the firm?

Economic Determinant

What assumption concerning economies of scale will give rise to a determinant and optimal scale of the firm in Long run equilibrium in perfect competetion?

Marginal Product of input

Assume 3 inputs Capital (K), Labor (L) and Land(N). What cost curve tells you for each level of output, the minimum per unit cost of producing that level of output? What must be true of the relationship between the marginal product of inputs and prices of inputs at each point?

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