Macroeconomics Answers

ALCHEM (L) is a price leader in the polyglue market. all 10 other manufacturers (follower (F) Firms) sell polyglue at the same price as ALCHEM. Alchem allows the other firms to sell as much as they wish at the establish price by the following function (QT=QL+QF):

P=10,000-10QT

ALCHEM'S marginal cost function for manufacturing and selling polyglue is:
MCL=100+3QL

the agregate marginal cost function for the other manufacturers of polyglue is:
∑MCF=50+2QF

A) to maximise profits how much polyglue should Alchem produce and what price should it charge

B) what is the total market demand for polyglue at the price established by alchem in part (A)? how much of total demand do follower firms supply?

the Osram lamp company, estimated the following demand function for its product:

Q=120000-10000p

where Q is the quantity demanded per year and P is the price per lamp. the firm's fixed cost is $12000 and variable cost is $1.50 per lamp.

a) write an equation for the total revenue (TR) function in term of Q.
b) state the marginal revenue function
c)write an equation for the total cost (TC) function in term of Q.
d)state the marginal cost function.
e) write an equation for total profits (π) in term of Q. at what level of outputs (unitd) and price ($) are total profits maximised? calculate the total profits at this output level

The President of Lisavia (a small country) wants to increase productivity in his country. He has recently become aware of an economic principle that suggests that as a nation's productivity rises, its income will rise and therefore its standard of living will also rise. You have just been appointed as the economic advisor for Lisavia. Discuss three economic policies you might advise the President to pursue in order for his country to achieve this increased standard of living.

The President of Lisavia (a small country) wants to increase productivity in his country. He has recently become aware of an economic principle that suggests that as a nation's productivity rises, its income will rise and therefore its standard of living will also rise. You have just been appointed as the economic advisor for Lisavia. Discuss three economic policies you might advise the President to pursue in order for his country to achieve this increased standard of living.

Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.

In 2010 in the Japan, the adult population was about 46.5 million, the labor force
participation rate was 63.5 percent, and the unemployment rate was 5.8 percent. What
was the number of people employed and the number of people unemployed?

Now consider the same economy, and the central bank sells $8 billion worth of government
bonds to local banks. State the likely effects on the money supply under reserve requirements
of:
a) 10%.
b) 15%.
c) 20%.
d) 25%.

What are the economic principles of a globalized economy?

quantity,total fixed cost,total variable cost,total cost,average cost,marginal cost=25 26 27 10 10 10 18 20 21 ? ? ?

In the United States, the Federal Reserve frequently engages in buying and selling of the government securities as well as other policies. In recent years, the Fed has reduced the Discount Rate several times. The Fed has also purchased substantial amount of government securities. Explain the logic of these actions by the Fed. Why are they doing this and what they hope to accomplish? Take a stand in support or against these actions and state your reasoning. If you were to advise the President, what course of action would you recommend?