Details of this Paper

Complete the following questions on demand function:

Description

solution


Question

1. Write the demand equation resulting from your output. Include specific coefficients.;2. Calculate the price elasticity of demand for this manufacturer if the price is $9.25 per unit, consumer income is $21,000, advertising is $100,000, and the quantity demanded is $499,999. Is demand elastic or inelastic at this price and quantity?;3. Calculate income elasticity of demand for this manufacturer at the same point as identified in question 2. Is the product an inferior good, a normal good, or a luxury?;Complete the following questions on production function;1. Write the production function resulting from your regression output. Include specific coefficients.;2. Assume a firm has five plants and 60,000 hours of labor. Estimate the firm?s;a. Marginal product (add one hour of labor and measure the change in output);b. Average product of labor;3. Now assume the firm has six plants and 60,000 hours of labor. Estimate the firm?s;a. Marginal product of labor;b. Average product of labor;4. How do your answers to questions 2 and 3 compare to one another? Is this what you would expect?;Complete the following questions on cost function;1. Write the cost function resulting from your regression results. Include specific coefficients.;2. Estimate the total, average, and marginal costs for a firm with a quantity sold of 60,000 units.;3. Is a firm operating at the point identified in question 2 operating at a profit-maximizing level of output? How do you know? If they are not, should they expand or reduce quantity sold to move closer to the profit maximization level? Explain your reasoning.;4. Estimate the average cost for a firm with a quantity sold of 70,000 units. Compare your answer with the answer to question #2 above. Does the manufacturer appear to have economies of scale? How do you know?

 

Paper#15523 | Written in 18-Jul-2015

Price : $37
SiteLock