grafting curves

I have to complete several questions all of which contain graphs and tables. I need help with explanations and interpretations of these drawings. Here is an example of some of the problems I am having difficulty with. (This is not an actual homework problem, but understanding the concept of this example would help me to do th ...continues

Utility Function; Risk Premium; Marginal Product of Capital; Isoquants and Isocost Lines; Cost Function etc.

There are a few problems that I have listed. On number 1 part C, I am not sure how I would find out how much Insurance Natasha is willing to buy, i KNow that I have to find the Risk Premium but it looks easy but I am not understanding how to find it. The next three problems I am completely lost, I need some step by step gu ...continues

Marginal revenue equation

The following information about a monopoly is given: Demand: Q = 40-2P(Q) Average cost: AC(Q) = Q Marginal Cost: MC(Q) = 2(Q) (a) Derive the marginal revenue equation (b) find the quantity at which profits are maximal. given that quantity, find the price charged and the monopolist's pr ...continues

Price elasticity of demand and the behavior of total revenue

Given: Q (demanded) = 8 - 2p How can I find the total revenue function and the marginal revenue function with just this information?

Utility maximization

A consumer buys five new college textbooks during his first year at school at a cost of $80 each. Used books cost only $50 each. When the bookstore announces that there will be a 10% increase in the price of new books and a 5% increase in the price of used books, the consumer's father offers him $40 extra. Is this consumer wor ...continues

4 Microeconomics Exercises

1) Externalities 1 Assume that scientific studies provide you with the following information concerning the benefits and costs of sulfur dioxide emissions: Marginal benefits of abating (reducing) emissions: MB = 400 - 10A Marginal costs of abating emissions: MC = 100 + 20A where A is the quantity abated in millions of ...continues

Price Elasticity

I am trying to determine own company and cross price elasticities. Here are my numbers: Own company: demand starts at 80 units, increases to 96 price starts at $1.33/unit and decreases to .97 Other company: demand starts at 80 units, increases to 96 price starts at 1.49 and decreases to 1.10 Thank you.

Herfindahl indices required and explanation of how it reflects market structure

Herfindahl Index (HHI) is the sum of the squared market shares of all the firms in the market. Company A - 35% market share Company B - 34% market share Company C- 13% market share Company D- 8% market share Company E- 4% market share Company F- 6% market share What is the HHI given the above? And how do I us ...continues

Bertrand and Cournot Equilibria

How does a company choose between the two? What are the deciding factors?

Economics Practice Questions - Demand Funciton; Elasticity of Demand ... etc

Attached are ten economic practic problems - I want to compare my results with yours. Thanks in advance for the help. Attached: 3. You are an aide for the Senate Banking Committee Chairman. He comes to you with a bill that proposes setting limits on what ATM owners can charge non-account holders, over and above what b ...continues