Expert answer:MICROECONOMICS homework
Answer & Explanation:Econ HW1.docx
econ_hw1.docx
Unformatted Attachment Preview
PRINCIPLES OF MICROECONOMICS
1. Betty can make either “12 bottles of wine and 0 boxes of chocolates” or “0 bottles of
wine and 96 boxes of chocolates” or a combination of wine and chocolates. To answer
parts (a) through (c) of this question assume that Betty’s Production Possibility Frontier
(PPF) reflects the property of constant opportunity costs.
a. [10 points] Draw Betty’s PPF.
b. [10 points] Find Betty’s opportunity cost of a bottle of wine in terms of box(es) of
chocolates.
c. [10 points] suppose Betty takes a course called WINE 103. After the semester is over
she realizes that she can now make either “48 bottles of wine and 0 boxes of chocolates”
or “0 bottles of wine and 96 boxes of chocolates” or a combination of wine and
chocolates. Find Betty’s new opportunity cost of a box of chocolate in terms of bottle(s)
of wine.
2. [10 points] Find the equilibrium price (P), quantity (Q), and revenue in a market
characterized by the following equations:
Qd = 500 – 2P [demand]
Qs = 3P [supply]
3. [10 points] According to a Wall Street Journal article “MCI, in New Phone War
Skirmish, Files Suit over AT&T Ad Claims,” MCI was upset with AT&T over
allegedly false claims that AT&T’s service is cheaper than MCI’s. Suppose that the
typical consumer is a small business, Woodbrook Electronics. Woodbrook uses MCI
as their long-distance carrier and currently places 100 calls per month. MCI charges
a price of $0.80 per phone call. Woodbrook used to subscribe to AT&T and placed
90 calls per month at AT&T’s old rate of $.90 per phone call, but switched to MCI to
take advantage of the lower price. Based on this data, estimate the equation for
Woodbrook’s demand assuming it is linear.
…
Purchase answer to see full
attachment
How it works
- Paste your instructions in the instructions box. You can also attach an instructions file
- Select the writer category, deadline, education level and review the instructions
- Make a payment for the order to be assignment to a writer
- Download the paper after the writer uploads it
Will the writer plagiarize my essay?
You will get a plagiarism-free paper and you can get an originality report upon request.
Is this service safe?
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades