Search & Filtering
Imagine a perfectly competitive firm producing good A with cost function
TC=400+20Q-2Q2+2/3Q3, where Q is quantity produced
a. determine the firm’s short run supply curve
b. What is the profit maximizing level of output when price of A is birr 180?
Assume the price of cigarettes increases by 50% due to a new law that raises the tax on
cigarettes. In the short run, PED for cigarettes is 0.3. By what percentage will the
quantity demanded fall following a 50% increase in the price?
If the fixed cost of manufacturing a product is ETB 10, 000 and the marginal cost at Q units of output is ETB(60+2.5Q). Find:
a. The function for the total cost of manufacturing x units.
b. The total cost of 200 units.
The marginal cost of a trader has been found to be MC = 3Q2 + 8Q + 400 . Determine the total variable cost of producing 100 units of the trade’s product.
Consider the following functional relations between x and y.
Y = (2x2 – 6x-20)2
a) at what values of x will the function have zero slope?
b) identify whether those zero slope points are maximum or minimum values of the function.
the importance price elasticity of supply in manufacturing sector and agriculture sector.
Show that the cardinal ordinal approaches have basically the same equilibruim conditions.
In a perfectly competitive and constant cost industry, all firms are identical. If the market demand function is: QD = 600P, a typical firm's cost function is: TC = 9³ - 20q² + 120q.
a. In the long run, what is the firm's equilibrium production decision?
b. In the long run, what is the market equilibrium price and quantity? What is the industry's long-run supply curve?
c. In the long run, how many firms will stay in the industry?
d. If the government decide to impost a $7 tax per unit, what is the new long-run equilibrium market price and quantity?
e. How many firms are producing after the tax?
Analyze the impact of insurance sector on gross domestic product (GDP) and financial help of an economy. Also explain why focusing simply on GDP can be harmful for economic development of a country?
Which competative markets can use price descrimination as a pricing strategy and why? In what ways three degress of price discrimination are different from each other? How can insurance industry use this price in extracting surpluses from consumers?
