Answer:
The bid amount should be $13,200,264.
Explanation:
An oil and gas producing company owns 42,000 acres of land in a southeastern state.
It operates 630 wells which produce 18,000 barrels of oil per year and 1.7 million cubic feet of natural gas per year.
The revenue from the oil is $1,800,000 per year and for natural gas the annual revenue is $581,000 per year.
Total Annual Revenue
= Revenue from oil + Revenue from gas
= $1,800,000 + $581,000
= $2,381,000
The bid amount should be the present worth of total annual revenue.
Present Worth of total annual revenue
= 
= 
= 
= 
= 
= 
= $13,200,264
Answer:
c) No change will occur in the market.
Explanation:
The correct option is : (c) No change will occur in the market
Reason: A price ceiling above the equilibrium price is a non binding price ceiling and it does not affect the market. No change in supply or demand occurs.
Answer:
D. Generates rents that might go to foreigners.
Explanation:
An import quota is the trade restriction imposed by the government on the quantity of the particular commodity to be imported from another country. It protects domestic producers from foreign competition. Overseas goods are generally very cheap compared to locally produced goods, which can destroy a business from the market and can make foreign companies be the leader of the market, who can control the price and quality of the product. Therefore, it very helpful to the local producer in sustaining and generating profit in the market.
5 weeks
There are 52 weeks per year and since the company closes for 2 weeks per year, that means that the company does business for 50 weeks each year. During that year, the company sold goods that cost $76,500. And the average inventory was $7,650 which is $7,650 / $76,500 = 0.10 = 10% of the goods sold for the entire year. So the average inventory could allow the company to work for 10% of the year. And 10% of 50 is 5. Therefore the company had 5 weeks of supply on average in inventory.
Answer:
q1 = 910
q2 = 910
Explanation:
Given:
Q = 2800 - 1000p
Marginal cost = $0.07 per unit
Q = 2800 - 1000p
Let's calculate profit of firm 1:
TR = p1 q1
MR = MC = 0.07
Cross multiplying:
2800 - 2q₁ - q₂ = 70
2800 - 2q₁ = 70 + q₂
2800 - 70 - 2q₁ = q₂
2730 - 2q₁ = q₂...............(1)
Let's calculate profit of firm 2:
TR = p₁ q₂
MR = MC = 0.07
Cross multiplying:
2800 - q₁ - 2q₂ = 70
2800 - 2q₂ = 70 + q₁
2800 - 70 - 2q₂ = q₁
2730 - 2q₂ = q₁................... (2)
Substitute 2730 - 2q₂ for q₁ in (1)...
Thus:
2730 - 2q₁ = q₂
2730 - 2(2730 - 2q₂) = q₂
2730 - 5460 + 4q₂ = q₂
-2730 + 4q₂ = q₂
-2730 = q₂ - 4q₂
-2730 = - 3q₂
q₂ = -2730/-3
q₂ = 910
Substituting 910 for q₂ in (2):
2730 - 2q₂ = q₁
2730 - 2(910)= q₁
2730 - 1820 = q₁
910 = q₁
q₁ = 910
The Cournot equilibrium quantities are: q₁= 910; and q₂ = 910
