Search & Filtering
. A perfectly competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q2. What is the
Lowest price at which this firm can break even?
. Given the Production Function Q = 72X + 15X2 - X3, where Q =Output and X=Input (5
marks)
a) What is the Marginal Product (MP) when X = 8?
b) What is the Average Product (AP) when X = 6?
c) At what value of X will Q be at its maximum?
d) At what value of X will Diminishing Returns set in?
Assume that in Azerbaijan, Alyana deposits $5,000 in the bank for a single year. Given the following cases, answer the questions.
CASE 1: inflation = 0%, nominal interest rate = 5%
CASE 2: inflation = 5%, nominal interest rate = 10%
CASE 3: inflation = 10 %, nominal interest rate = 15%
- In which case does the real value of your deposit grow the most?
Assume the tax rate is 30%.
- In which case do you pay the most taxes?
- Compute the after-tax nominal interest rate,
- then subtract inflation to get the after-tax real interest rate for both cases.
The rate at which the consumer is prepared to sacrifice the small quantity of one good or a little more of the other good is called…….
A. Law of returns.
B. Diminishing marginal return.
C. Law of demand.
D. Law of substitution.
E. Marginal rate of substitution.
When all other factors stay the same but marginal productivity falls:
A. MC must rise.
B. MC must fall.
C. AC must fall.
D. AC must rise.
None of the above
A small open economy is described by the following equations:
C=50+0.75 (Y-T) I=200-20r NX=200-50e M/P=Y-40r
G=100 T=100 M=2,000 P=2 r*=4
(a) Derive and graph the IS* and LM* curves (Mundell-Fleming model)
(b) Calculate (i) the equilibrium rate and (ii) output
(c) Assume a floating exchange rate. Calculate what happens to (i) the exchange rate, (ii) income, (iii) net exports, and (iv) the money supply if the government raises taxes by 50. Use a graph to explain what you find.
In the basic Keynesian model of income determination, calculate the expenditure multiplier, given the following consumption function:
C = 200 + 0.50Y
1. Explain why successful firms that employ markup pricing use fully allocated costs under normal conditions, but typically offer price discounts or accept lower margins during off-peak periods when excess capacity is available.
2. Discuss how seasonal factors influence supply and demand, and why markups on fresh fruits and vegetable are at their highest during the peak of season.
Economic profits result whenever only a few large competitors are active in a given market.” Discuss this statement
Identify the impact of Corona virus outbreak on economic growth, trade and human welfare. Discuss possible options for economies in the Pacific to deal with its potential threats. According to the question above, write about the literature concerning this question.
