Jenney

Popular questions and responses by Jenney
1. CALCULUS ECONOMICS

Consider the same setting as in the previous question. Suppose that firms are NOT owned by consumers. Let s denote the size of the per-unit subsidy/tax given to the firms. Let positive values of s denote subsidies, and negative values of s denote taxes.

2. CALCULUS ECONOMICS

Consider an economy in which a monopolistic firm serves two identical, but separate markets, called A and B. The aggregate inverse demand in each market is given by 1000−q. The cost function for the monopolist is given by (qA+qB)^2, where qA andqB

3. CALCULUS ECONOMICS

Consider a market in which aggregate demand is given by 1000−10p, and aggregate supply is given by 10p, where p denotes the market price. QUESTION: What is the maximum amount of revenue that the government can raise using a per-unit sales tax on

4. CALCULUS ECONOMICS

Consider an oligopolistic market with two firms. Each of them produces using a cost function given by c(q)=q^2. The aggregate demand in the market is given by 1000−p. Suppose that, in order to increase production, the government gives the firms a \$100

5. CALCULUS ECONOMICS

Consider the problem of a competitive firm which has fixed costs of \$1000, semi-fixed-costs of \$1000, and variable costs given by q2. QUESTION: What is the maximum market price at which the firm decides to supply zero?

6. CALCULUS ECONOMICS

Consider a market in which consumption of the good being traded generates a positive externality. There are 100 identical consumers, each with a utility function given by (1/2)*(q^(1/2))+m +(G^(1/2)) where G denotes the total level of consumption in the

7. CALCULUS ECONOMICS

Consider the problem of a competitive firm which has fixed costs of \$1000, semi-fixed-costs of \$1000, and variable costs given by q^2. QUESTION: What is the maximum market price at which the firm decides to supply zero?

8. CALCULUS ECONOMICS

Consider a market in which consumption of the good being traded generates a positive externality. There are 100 identical consumers, each with a utility function given by (1/2)*(q^(1/2))+m +(G^(1/2)) where G denotes the total level of consumption in the

9. CALCULUS ECONOMICS

Consider the problem of a rational consumer with an experienced utility function given by 8*x^(1/2)+m. Let p=\$1 p/unit denote the market price of good x. Suppose that, initially, the firm selling the good matches his purchases as follows: for every x units

10. CALCULUS ECONOMICS

Consider an oligopolistic market with two firms. Each of them produces using a cost function given by c(q)=q^2. The aggregate demand in the market is given by 1000−p. Suppose that, in order to increase production, the government gives the firms a \$100