Quiz Space

Managerial Economics · End Term · 13 Apr 2025 · January 2025 term

Question 4: How many beehives will the beekeeper maintain if we ignor…

Question 4

+1 markNumerical answer

A beekeeper lives adjacent to an apple orchard. The orchard owner benefits from the bees because each hive pollinates about one acre of apple trees. The orchard owner pays nothing for this service, however, because the bees come to the orchard without him having to do anything. Because there are not enough bees to pollinate the entire orchard, the orchard owner must complete the pollination by artificial means, at a cost of $10 per acre of trees.
Beekeeping has a marginal cost MC = 10 + 5Q, where Q is the number of beehives. Each hive yields $40 worth of honey.
Based on the above data, answer the given subquestions.

How many beehives will the beekeeper maintain if we ignore the apple orchard _________

Show answer

Correct answer: 6

See the whole paperTake it as a mock test

Question 4 of 40 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 13 Apr 2025, in the January 2025 term (IIT M IMPROVEMENT AN EXAM QIM3 13 Apr 2025). It carries 1 mark.

More questions from this paper

  1. Q1If the insurance provider offered medical insurance at a price of \$1,000
  2. Q2If the insurance company offered medical insurance at a price of \$1,300
  3. Q3What should be the socially efficient number of hives that the beekeeper should maintain _
  4. Q5What are the monopolist’s profit-maximizing price and quantity?
  5. Q6The resulting profit will be
  6. Q7Calculate the firm’s degree of monopoly power using the Lerner index
  7. Q8Suppose two firms operate in a market and can produce at a constant average (and marginal) cost of AC = MC = \$5. Let Q…
  8. Q9Suppose two firms operate in a market and can produce at a constant average (and marginal) cost of AC = MC = \$5. Let Q…
  9. Q10Suppose two firms operate in a market and can produce at a constant average (and marginal) cost of AC = MC = \$5. Let Q…
  10. Q11Suppose two firms operate in a market and can produce at a constant average (and marginal) cost of AC = MC = \$5. Let Q…
  11. Q12Suppose two firms operate in a market and can produce at a constant average (and marginal) cost of AC = MC = \$5. Let Q…
  12. Q13Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  13. Q14Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  14. Q15Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  15. Q16Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  16. Q17Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  17. Q18What is Latif’s profit (per car in \$) if he does not offer a one-year warranty? _
  18. Q19What is Latif’s profit (per car in \$) if he offers a one-year warranty?
  19. Q20What is Hamid’s profit (per car in \$) if Latif’s does not offer a one-year warranty? _
  20. Q21What is Hamid’s profit (per car in \$) if Latif’s offers a one-year warranty?
  21. Q22Will Latif’s match Hamid’s one-year warranty?
  22. Q23Is it a good idea for Hamid’s to offer a one-year warranty?
  23. Q24What if Hamid offers a two-year warranty? Will this generate a credible signal of quality?
  24. Q25The equilibrium quantity and price before incidence of tax are
  25. Q26Consumer surplus before incidence of tax is
  26. Q27Producer surplus before incidence of tax is
  27. Q28The equilibrium quantity after the incidence of tax is
  28. Q29The new price that buyer pays after incidence of tax is
  29. Q30The net price received by the seller after incidence of tax
  30. Q31The loss in consumer surplus due to incidence of tax is
  31. Q32The loss in producer surplus due to incidence of tax is
  32. Q33The total tax revenue is
  33. Q34Deadweight loss of tax is
  34. Q35What is true about monopolistic competition
  35. Q36Choose the correct statement
  36. Q37The Cobb-Douglas production function F(K, L)=K^(p)L^(q)
  37. Q38Choose the correct alternative
  38. Q39Adverse selection occurs when
  39. Q40Moral hazard occurs when contracts are written in such a way that