Answer:
Explanation:
A point on U=800 is (5, 16)
From BL:
400*F+100D =4000
400*5+100*16 =3600<4000
Therefore u = 800 affordable.
U= 1200
F = 1200/10D
If D = 20
F = 1200/200
=6
Now from BL:
400*6+100*20= 2400+2000=4400>4000
Not affordable.
Maximization:
L = 10DF+ʎ[100*D+400*F – 4000]
Differentiating wrt D and F:
dL/dD = 10F + ʎ*100
dL/dF = 10D +ʎ*400
equating to zero;
ʎ= -F/10
ʎ=-D/40
equating the two:
F/10=D/40
D = 4F
From BL:
400*F+100*D = 4000
400F+100*4F = 4000
800F = 4000
F = 5
D = 4*5=20
Answer: Market Share
Explanation:
Market Share is the the percentage of the total market that a business or a product controls.
For a company, it is the ratio of the company's total sales to the total sales of the industry it operates in. For example, if Miranda's company made a total sales of $10 million and the dental tool market is worth $100 million, Miranda's company controls 10% of the market and has 10% market share.
Answer:
D. When ITQs are used, no one has an incentive to cheat and exceed the quota.
Explanation:
As ITQs (individual transferable quotas) were initially created by the government to regulate an above all, social affair, which is related to the share in the total allowable catch of fish (species).
Since some of the fishermen have lower and some have higher marginal costs of "producing" fish, they trade ITQ's between themselves, with those who have high marginal costs selling ITQs to those that have low marginal costs. Also, the marginal private cost now becomes determined by the initial marginal private cost of the fish, plus the <u>price of the ITQ</u>. Then, it becomes known as the marginal social cost.
The equilibrium for the ITQ price is the difference between the <em>marginal social benefit</em> and the marginal cost. With the base marginal private cost becoming the marginal social cost, no one has the incentive to exceed the quota, as that would make the marginal cost go higher than the price, and the marginal profit lower. This notion creates the equality between self-interest and social interest.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The correct answer is (B)
Explanation:
Producers are influenced by the benefits and profits they hope to pick up from the products or administrations in a free market economy. The idea of producers is to create goods and services and sell them at maximum profits because they feel consumer will buy their products because they need them. A profit motive is generally beneficial to the overall economy of the country. It is expected to give a motivating force to create productivity and development.
