The residents of the town Ectenia all love economics, and the mayor proposes building an economics museum. The museum has a fixed cost of $2,000,000 and no variable costs. There are 100,000 town residents, and each has the same demand for museum visits: Q
QD=12−P, where P
P is the price of admission.
On the following graph, use green points (triangle symbol) to graph the museum's average-total-cost curve at the following quantities: 1,000 visits, 2,000 visits, 4,000 visits, 5,000 visits, 10,000 visits, and 20,000 visits. Then use the orange line (square symbol) to graph the museum's marginal-cost curve.
Average Total Cost
What kind of market would describe the museum?
Perfectly competitive market
The mayor proposes financing the museum with a lump-sum tax of $20 and then opening the museum to the public for free.
Under this system, each person would visittimes. The benefit each person would get from the museum would be. ( Hint : You can measure the benefit as consumer surplus minus the new tax.)
The mayor's anti-tax opponent says the museum should finance itself by charging an admission fee.
The lowest price the museum can charge without incurring losses is. ( Hint : Find the number of visits and museum profits for prices of $1, $2, $3, and $4.) At this price, each resident's consumer surplus is.
Which of the following statements are true? Check all that apply.
Total societal welfare is better with the admission fee than under the mayor's plan.
Revenue per person is the same regardless of whether an admission fee or the mayor's plan is used.
Consumers are worse off with the admission fee than under the mayor's plan.
One of the problems faced by the auditors in their verification of inventory is the risk that slow-moving and obsolete items may be included in the goods on hand at the b...Apr 19 2020
Describe the steps in determining inventory quantities. Please provide solution for the sameMay 12 2020
Symptoms of addiction include which of the following?a.An overwhelming, destructive pattern of compulsion for substance or behaviorb.Greater tolerance required for satisf...Dec 16 2019
Deceptive advertising and promotion of inferior products are examples of __________ ethical issues. A.accountingB.marketingC.socialD.financeE.economic27.Unlike other b...Dec 14 2019
CALCULATING THE COST OF CAPITAL LG3 11-1 Diddy Corp stock has a beta of 1.2, the current risk-free rate is 5 percent, and the expected return on the market is 13.5 percen...May 05 2020
Briefly explain the ethical considerations associated with personal branding. 82.Develop a strategy for growing your personal brand value on social media in a way that...Dec 14 2019
What general guidelines can you provide for interpreting the statement of cash flows?14–5 If an asset is sold at a gain, why is the gain subtracted from net income w...Jun 27 2020
P9-12 (Retail, LIFO Retail, and Inventory Shortage) Late in 2009, Joan Seceda and four other investors took the chain of Becker Department Stores private, and the company...May 12 2020
1. On a graph of volume versus temperature draw and label lines indicating the following processes, each proceeding from the same initial state T1 , V0 : (a) an isotherma...May 08 2020
The following data are given for a certain rocket unit: thrust, 8896 N; propellant consumption, 3.867 kg/sec; velocity of vehicle, 400 m/sec; energy content of propellant...Jul 23 2020