Answer:
So unit elastic at q = 5
inelastic above 5
and elastic below 5
Explanation:
The elasticity is determianted by the marginal revenue.
Our first goal is to find the marginal revenue function
p = 40 - 4q
total revenue(TR) = quantity times price
q x (40 - 4q) = -4q^2 +40q
marginal revenue TR(q)/d(q) = -8q + 40
Now, with this fuction the economic analisys states that a demand is unit elastic when marginal revenue is zero.
It will be inelastic below zero and elastic above zero
MR will be zero when q = 5
-8(5) + 40 = 0
As quantity increases the demand will be inelastic
while
Answer:
Italy has a comparative advantage in the production of cheese
Explanation:
Suppose that Italy and Sweden both produce rye and cheese.
Italy's opportunity cost of producing a pound of cheese is 5 bushels of rye while Sweden's opportunity cost of producing a pound of cheese is 10 bushels of rye.
<u>By comparing the opportunity cost of producing cheese in the two countries, you can tell that Italy has a comparative advantage in the production of cheese because it has a lower opportunity cost (as a matter of fact half the cost) in comparison with Sweden.</u>
<u>Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners</u>
Answer:
Blossom record $161,100 as cost of land.
Explanation:
Here, we are to calculate amount recorded as the cost of the land purchased by Blossom company.
We proceed mathematically;
From the question;
Calculation of land cost = cash payment + property tax value + Title and attorney fees + Grading cost
Cost of land = 150,000 + 5,200 + 2,000 + 3,900 = $161,100
Blossom record $161,100 as cost of land.
The uncontrolled, competitive market equilibrium in the aforementioned graph has a tuition of $18,000 and a quantity of 30 million college students.
<h3>What Is Competitive Equilibrium? </h3>
Competitive equilibrium is a situation in which profit-maximizing producers and utility-maximizing customers reach an equilibrium price in competitive markets with freely determined prices. The quantity supplied and the quantity demanded are equal at the equilibrium price.
<h3>Why do competitive marketplaces alter equilibrium?</h3>
The market is constantly moving towards equilibrium because if the price is too high, there is a surplus and prices tend to drop until the surplus is sold and equilibrium is attained, and if the price is too low, there is a shortage and manufacturers raise prices and increase quantity provided.
Learn more about competitive market equilibrium: brainly.com/question/14412690
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