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Suppose rocking-chair manufacturing is a perfectly competitive industry in which there are 1,000 identical firms. Each firm's total cost is related to output per day as follows: 0 $500 5 $2,200 1 $1,000 6 $2,700 2 $1,300 7 $3,300 3 $1,500 8 $4,400 4 $1,800
- What is the firm's supply curve? How many chairs would the firm produce at prices of $350, $450, $550, and $650? (
the market for lemons has 10 potential customers each having an individual curve p=101-10Qi where p is price in dollars per cup and Qi is the number of cups demanded per week by the ith consumer. find the market demand curve using algebra.draw an individual demand curve and the market demand curve.what is the quantity demanded by each consumer and the market as a whole when lemon is priced at p=$/cup?
The price of coffee rose sharply last month, while the quantity sold remained the
same. Five people suggest various explanations:
Leonard: Demand increased, but supply was perfectly inelastic.
Sheldon: Demand increased, but it was perfectly inelastic.
Penny: Demand increased, but supply decreased at the same time.
Howard: Supply decreased, but demand was unit elastic.
Raj: Supply decreased, but demand was perfectly inelastic.
Who could possibly be right? Use graphs to explain your answer.
The price of coffee rose sharply last month, while the quantity sold remained the same. Five people suggest various explanations:
Leonard: Demand increased, but supply was perfectly inelastic. Sheldon: Demand increased, but it was perfectly inelastic.
Penny: Demand increased, but supply decreased at the same time. Howard: Supply decreased, but demand was unit elastic.
Raj: Supply decreased, but demand was perfectly inelastic. Who could possibly be right? Use graphs to explain your answer.
TC = 5Q1 + 10Q2
where Q1 and Q2 denote the quantities of G1 and G2, respectively. If P1 and P2 denote
the corresponding prices, then the demand equations are
P1 = 50 − Q1 − Q2
P2 = 100 − Q1 − 4Q2
Use Lagrange Multiplier to find the maximum profit if the firm’s total costs are fixed at $100. Estimate the new optimal profit if total costs rise to $101
do you agree that the economic interpretation and impact of legislation is the most neglected area? express your views with the law of primogeniture prevailed during feudal age and equal right of succession in capitalist age
Explain the three categories of returns to scale relating to the long-run average cost curve. (15 MARKS)
Discuss the relationship between the three short-run total cost curves. Use a diagram to motivate your answer. (15 MARKS)
Discuss one (1) reason for the downward sloping aggregate demand curve
Suppose the cost function is given as C = 135 + 75Q – 15Q2 + Q3. Prepare a cost schedule (table) showing the TFC, TVC, TC, AFC, AVC, MC, and ATC. Is this cost function a short run or a long run cost function? Why? Draw the cost curves on the basis of cost data obtained from the cost function.
#339914 on Dec 2023