Macroeconomics Answers

If a firm is operating in the area of constant returns to scale, what will happen to average total costs in the short run if the firm expands production? Why? What will happen to average total costs in the loge run? Why?

What is not a macroeconomic indicator?

With aid of graph what impact of more South Africans spend their holidays in the United States world be on Rands or Dollars exchange rate centers Paribas

If the demand functions for the two consumers are:

For consumer 1 Qd1= 10-4P1

For consumer 2 Qd2= 4-2P2

When the two prices are 3 birr.

a. Determine the market demand using the same price for

the two functions?

A tour operating firm plans to take tourists between Addis Ababa and Jimma. its estimated cost function given by C =100 +50 N+4N² (Where N denotes the number of passengers per day)

       A. State the average cost function.

       B. State the marginal cost of the average cost function.

       C. Find the number of passengers per day that minimize average cost.

       D. What is the minimum average cost at the optimal level of passenger?

       E. What will be the total cost at the optimal level?

The cross-price elasticity of demand for peanut butter with respect to the price of jelly is -0.3. 

If we expect the price of jelly to decline by 15%, what is the expected change in the quantity 

demanded for peanut butter? 

Discuss what a financial system is and the key role that any financial institution plays in an economy. What are the main reasons for regulating financial institutions and how do the regulators do this?

1. Looking at the IS-LM model, please explain what would happen if your local currency depreciates against the currency of your major trading partner. Would the situation be the same when your economy is in a liquidity trap? Why? Why not?

1. Let the national income model be Y = C₀ + c (Y – 3tY) + I + G + X – M, where C₀, I, G, X, and M are given. The government considers increasing G by EUR 1 million. Assuming c = 0.3 and t = 0.15, what would be the expected change in the national output?

ur operating firm plans to take tourists between Addis Ababa and Jimma. its estimated cost function given by C =100 +50 N+4N2 (Where N denotes the number of passengers per day)

A. State the average cost function.

B. State the marginal cost of the average cost function.

C. Find the number of passengers per day that minimize average cost.

D. What is the minimum average cost at the optimal level of passenger?

E. What will be the total cost at the optimal level?