please email info@checkyourstudy.com Chapter 15 Practice Problems (Practice – no … Read More...
In the country of Wiknam, there is only one firm that produces and sells soccer ball. Initially international trade is prohibited in the country. The following equations describe the monopolist’s demand, marginal revenue, total cost and marginal cost: Demand: P = 10 – Q Marginal Revenue: MR = 10 – 2Q Total Cost: TC = 3 + Q + 0.5Q2 Marginal Cost: MC = 1 + Q Q stands for quantity and P is the price measured in Wiknamian dollars. a) [20 marks] How many soccer balls does the monopolist produce? At what price are they sold? What is the monopolist’s profit? Show all your calculations. b) [10 marks] One day, the King of Wiknam decrees that henceforth, there will be free trade- either imports or exports- of soccer balls at the world price of $6. The firm now becomes a price taker in a competitive market. What happens to domestic production of soccer balls? What happens to domestic consumption? Does Wiknam export or import soccer balls? c) [10 marks] Suppose that the world price was not$6, but instead, happens to be exactly the same as the domestic price without trade as determined in part a) above. Would allowing trade change anything for the Wiknamian economy? Explain

## In the country of Wiknam, there is only one firm that produces and sells soccer ball. Initially international trade is prohibited in the country. The following equations describe the monopolist’s demand, marginal revenue, total cost and marginal cost: Demand: P = 10 – Q Marginal Revenue: MR = 10 – 2Q Total Cost: TC = 3 + Q + 0.5Q2 Marginal Cost: MC = 1 + Q Q stands for quantity and P is the price measured in Wiknamian dollars. a) [20 marks] How many soccer balls does the monopolist produce? At what price are they sold? What is the monopolist’s profit? Show all your calculations. b) [10 marks] One day, the King of Wiknam decrees that henceforth, there will be free trade- either imports or exports- of soccer balls at the world price of $6. The firm now becomes a price taker in a competitive market. What happens to domestic production of soccer balls? What happens to domestic consumption? Does Wiknam export or import soccer balls? c) [10 marks] Suppose that the world price was not$6, but instead, happens to be exactly the same as the domestic price without trade as determined in part a) above. Would allowing trade change anything for the Wiknamian economy? Explain

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On average, a healthy adult human produces 10-20 liters of urine per day.

## On average, a healthy adult human produces 10-20 liters of urine per day.

On average, a healthy adult human produces 10-20 liters of … Read More...
Transportation 1. What would be some major benefits to a city investing in mass transit? • Reduces congestion and fuel usage o 2011 – U.S. public transportation use saved 865 million hours in travel time and 450 million gallons of fuel in 498 urban areas o Decrease the need for road enhancements o Can be quicker to get to work when roads are congested o Incentivizes exercise o Mass transit can have less land use requirements • Provides economic opportunities o revitalization of cities o Provides jobs in transportation o City makes money off of transit revenue o More appealing to tourists • Air quality o Cuts carbon emissions by 37 million metric tons annually o Air quality improvement for the city (less smog) • Safety o Reduce the number of accidents 2. What would be some major benefits to the users of mass transit? • Traffic o Reduces frustration of driving in traffic o Reduces the need for gas in traffic o Reliable and predictable time of arrival o More options to travel o No waiting in DMV lines • Economics o Public transit vs. owning, driving, and parking a car = $803/month average savings (~$10,000 a year) o Connects people who don’t have a car to jobs, healthcare, home o Provides jobs in transportation o No longer have to pay car insurance • Social o Can interact/meet new people every day o Connects communities o Can do other things, like read, on the train or bus o Reduce in stress o • Safety o Reduce risk of accidents

## Transportation 1. What would be some major benefits to a city investing in mass transit? • Reduces congestion and fuel usage o 2011 – U.S. public transportation use saved 865 million hours in travel time and 450 million gallons of fuel in 498 urban areas o Decrease the need for road enhancements o Can be quicker to get to work when roads are congested o Incentivizes exercise o Mass transit can have less land use requirements • Provides economic opportunities o revitalization of cities o Provides jobs in transportation o City makes money off of transit revenue o More appealing to tourists • Air quality o Cuts carbon emissions by 37 million metric tons annually o Air quality improvement for the city (less smog) • Safety o Reduce the number of accidents 2. What would be some major benefits to the users of mass transit? • Traffic o Reduces frustration of driving in traffic o Reduces the need for gas in traffic o Reliable and predictable time of arrival o More options to travel o No waiting in DMV lines • Economics o Public transit vs. owning, driving, and parking a car = $803/month average savings (~$10,000 a year) o Connects people who don’t have a car to jobs, healthcare, home o Provides jobs in transportation o No longer have to pay car insurance • Social o Can interact/meet new people every day o Connects communities o Can do other things, like read, on the train or bus o Reduce in stress o • Safety o Reduce risk of accidents

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Ryan and Ben are best friends. Ryan regularly runs marathons and is a member of the Marathon Runners Club at his university. Ben also wants to join the club, but he is not a very strong runner. Ben decides to start running every day so that he can participate in marathons and become a member of the club. Given this information, the Marathon Runners Club can be categorized as a(n) _____.

## Ryan and Ben are best friends. Ryan regularly runs marathons and is a member of the Marathon Runners Club at his university. Ben also wants to join the club, but he is not a very strong runner. Ben decides to start running every day so that he can participate in marathons and become a member of the club. Given this information, the Marathon Runners Club can be categorized as a(n) _____.

aspirational reference group
A life insurance salesman sells on the average 33 life insurance policies per week. Use Poisson’s law to calculate the probability that in a given week he will sell Some policies 22 or more policies but less than 55 policies. Assuming that there are 55 working days per week, what is the probability that in a given day he will sell one policy?

## A life insurance salesman sells on the average 33 life insurance policies per week. Use Poisson’s law to calculate the probability that in a given week he will sell Some policies 22 or more policies but less than 55 policies. Assuming that there are 55 working days per week, what is the probability that in a given day he will sell one policy?

A life insurance salesman sells on the average 33 life … Read More...