## Explain why development of a profit-maximizing model here requires 0 < g < 1. b.

The Acme Heavy Equipment School teaches students how to drive construction machinery. The number of students that the school can educate per week is given by q ¼ 10 min(k, l) r , where k is the number of backhoes the firm rents per week, l is the number of instructors hired each week, and g is a parameter indicating the returns to scale in this production function. a. Explain why development of a profit-maximizing model here requires 0 < g < 1. b. Supposing g ¼ 0.5, calculate the firm’s total cost function and profit function. c. If v ¼ 1000, w ¼ 500, and P ¼ 600, how many students will Acme serve and what are its profits? d. If the price students are willing to pay rises to P ¼ 900, how much will profits change? e. Graph Acme’s supply curve for student slots, and show that the increase in profits calculated in part (d) can be plotted on that graph.

### Calculate the PEDs for the Burbank–Oakland and Kansas City–St Louis routes.

Southwest Airlines is a major carrier based in Texas, and has made a strategy of cutting fares drastically on certain routes with large effects on air traffic in those markets…..

### Please show two graphs that represent relationships between Y and X, one that has uncertainty or forecast error and one that does not

Please briefly respond to all of the following questions on each page. There are 3 pages of questions. This exam is a “take-home, open book” exam and posted no later….

### analyze marks tax losses.

Mr Mark Lewis is employed on a luxury cruise liner which travels the Mediterranean Sea. After deductions his taxable income is AUD\$150,000, (Hong Kong Dollar 790,000)   He owns a….