ECON 100B Lecture Notes - Lecture 5: Opportunity Cost, Profit Maximization, Historical Cost

27 views4 pages

brownyak123

26 Mar 2017

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Homogeneous of degree 19/24: since 19/24 < 1, f satisfies decrease returns to scale. Ap and mp depends on factor ratios only, not on scale. Ap l (l, k (bar) ) = f (l, k (bar) ) / l. = f (l, k (bar) ) / l. = f ( l, k (bar) ) / l (by constant return to scale) = f (l / l, k (bar) / l) / (l/l) Mp l (l, k (bar) ) = f (l, k (bar) ) / l. = (l f (1, k (bar) / l) / l (by constant return to scale) = f (1, k (bar) / l) + l f (1, k (bar) ) / k * [(k (bar) ) / l] / l. [(k (bar) ) / l] / l = 0 where k (bar) / l = constant. Mp l (l, k) l + mp k (l, k) k = f (l,k)

Related Questions

37.Use the following setup for the next question.

A manufacturing firm is deciding whether or not to invest in a new printer that needs an initial investment of $150,000. The investment would increase cash flows in the first year by $80,000 and in the second year by $75,000.

?If the interest rate is 10% then the net present value of the investment is

?a. $5,000

b. ?- $9,091

?c. -$15,290

?-$21,901

33.

Table 13-16
Listed in the table are the long-run total costs for three different firms.

Quantity	1	2	3	4	5
Firm A	100	100	100	100	100
Firm B	100	200	300	400	500
Firm C	100	300	600	1,000	1,500

Refer to Table 13-16. Which firm is experiencing constant returns to scale?

a.	Firm C only

b. Firm A only

c.	Firm B only

Firm A and Firm B only

27.

Table 13-7
The Flying Elvis Copter Rides

Quantity	Total Cost	Fixed Cost	Variable Cost	Marginal Cost	Average Fixed Cost	Average Variable Cost	Average Total Cost
0	$50	$50	$0	--	--	--	--
1	$150	A	B	C	D	E	F
2	G	H	I	$120	J	K	L
3	M	N	O	P	Q	$120	R

Refer to Table 13-7. What is the value of E?

1.Create a list that contains 10 successive integers starting with the value in the variable start. For example, if start is 7, the resulting list should be [7, 8, 9, 10, 11, 12, 13, 14, 15, 16]. Store the list in a variable named my_list. Assume that the value of start has already been set.

2.Create a list that is made up of the first half of the elements of a list called original_list. Store the new list in a variable called half_list. Assume that the original list has already been initialized and contains an even number of elements.

3. Write a predicate function called same_ends that accepts a list of integers and an integer (n) as arguments. Return True if the first n numbers in the list are the same as the last n numbers in the list, and False otherwise. For example, if the list was [1, 2, 3, 4, 99, 1, 2, 3, 4], the function would return True if n is 4 and False if n is 3. Assume that n is between 1 and the length of the list, inclusive.

4.Write a function called highest_values that accepts as arguments a list of numeric values and a single integer (n). The function should return a list made up of the largest n values from the argument list in order from lowest to highest. For example, if the argument list is [46, 82, 25, 61, 70, 33, 54] and n is 3, the return value should be [61, 70, 82]. Assume that the argument list contains at least n elements.

5.Assume that a list of integers stored in a variable named original contains exactly two elements that are zero. Write code that creates a separate list that contains the elements from original that are between the two zeros. Do not include the zeros in the new list. Store the list in a variable named between_zeros.

6. Write a function called price_range that accepts a list of floating-point numbers representing prices as an argument and returns the the difference between the highest price and the lowest price. Do NOT use the built-in functions max or min in your solution. Assume that all prices are positive values and that none of them exceed 10,000.00.

7. Write a function called count_vowels that accepts a string argument that represents a word and returns the number of vowels that are in the word. The vowels are A, E, I, O, and U (ignore the 'sometimes Y' rule). Count both uppercase and lowercase vowels.

Assume that the variable table holds a two-dimensional list of integers. Write code that computes the sum of all elements in the table, assigning the result to the variable table_sum.

emeraldhorse214

TABLE 66 Stock Prices and Consumer Prices

CITY
Y = Rate of Change, Stock Prices, Percent Per Year
X = Rate of Change, Consumer Prices, Percent Per Year

CITY	Y	X
A	5	4.3
B	11.1	4.6
C	3.2	2.4
D	7.9	2.4
E	25.5	26.4
F	3.8	4.2
G	11.1	5.5
H	9.9	4.7
I	3.3	2.2
J	1.5	4
K	6.4	4
L	8.9	8.4
M	8.1	3.3
N	13.5	4.7
O	4.7	5.2
P	7.5	3.6
Q	4.73.	6
R	8	4
S	7.5	3.9
T	9	2.1

Table 66 gives data on percent change per year stock prices (Y) and consumer prices (X) for a cross section of 20 cities.

******************* answer in "SAS format" please********************* (if possible)

1) Plot the data in scattergram

2) Regress Y on X and examine the residuals from this regression. What do you observe?

3) Since the data for city(E) is unusual, repeat the regression in (2) dropping the data on city(E). Now examine the residuals from this regression. What do you observe?

4) If on the basis of the results in (2) you conclude that there was heteroscedasticity in the error variance but on the basis of the results in (3) you reverse your conclusion, what general conclusions do you draw?

State whether the following statements are true or false. Breifly justify your answer:

5) When autocorrelation is present, OLS estimators are biased as well as inefficient;

6) The R squared values of two models, one involving regression in the first-difference form and another in the level form, are not directly comparable.

7) In the presence of heterscedasticity the usual OLS method always overestimates the standard errors of estimators.

8) If a regression model is mis-specified (e.g., an important variable is ommitted), the OLS residuals will show a distinct pattern.

redcamel374

ECON 100B Lecture Notes - Lecture 5: Opportunity Cost, Profit Maximization, Historical Cost

Document Summary

Get access

Related Questions