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Microeconomics
Robinson's technology for producing coconuts (x) is represented by x equals square root of l, where l is labour, in hours per day. His preferences for coconuts and labour are given by the utility function u left parenthesis l comma space x right parenthesis equals x minus l over 2. Assume Robinson is the only consumer of coconuts, and the owner of the only firm that produces coconuts. Suppose the price of coconuts is set at 1.
The Pareto efficient allocation of labour and coconut is l= and x=
The Pareto efficient allocation of labour and coconut is l= and x=
Microeconomics
Find the equilibrium price and quantity
Set Qd = Qs:
100/3-P/3 = -5+P/2
Set Qd = Qs:
100/3-P/3 = -5+P/2
Microeconomics
the differnce between price ratationing and non-price ratining
Microeconomics
What are the 4 arguments for Protective Trade?
Microeconomics
Qdx = 500 - 5Px + 0.5I + 10Py - 2Pz
1. based on the demand function above, what is the relationship between commodity x and commodity y
2. based on the demand function above, is commodity x a normal good or an inferior good. explain your answer
1. based on the demand function above, what is the relationship between commodity x and commodity y
2. based on the demand function above, is commodity x a normal good or an inferior good. explain your answer
Microeconomics
Suppose that price of labor is Rs.300 and the price of capital is Rs.400.what is the equation of the isocost line corresponding to a total cost of Rs.1000?
Microeconomics
The cardboard box industry is composed of 100 identical firms, each having short-run total costs given by: STC = 0.5q2 + 10q +5
Where q is the output of cardboard boxes per day.
The market supply is given by: 100q = 100P -1000.
And the market demand for cardboard box production is given by: Q = 1,100 – 50P
a. What will be the equilibrium in this marketplace? What will each firm’s short-run profits, and what is profit for the industry as a whole?
b. Compute the total producer surplus in this market.
c. Suppose the government poses a $3 tax on snuffboxes. How would this tax change the market equilibrium (i.e. demander price, supplier price, after tax quantity, and total tax revenue)?
d. How would the burden of this tax be shared between buyers and sellers?
e. Calculate the total loss of producer surplus as a result of the taxation of cardboard boxes? What is the total loss in profits as a result of the taxation?
Where q is the output of cardboard boxes per day.
The market supply is given by: 100q = 100P -1000.
And the market demand for cardboard box production is given by: Q = 1,100 – 50P
a. What will be the equilibrium in this marketplace? What will each firm’s short-run profits, and what is profit for the industry as a whole?
b. Compute the total producer surplus in this market.
c. Suppose the government poses a $3 tax on snuffboxes. How would this tax change the market equilibrium (i.e. demander price, supplier price, after tax quantity, and total tax revenue)?
d. How would the burden of this tax be shared between buyers and sellers?
e. Calculate the total loss of producer surplus as a result of the taxation of cardboard boxes? What is the total loss in profits as a result of the taxation?
Microeconomics
The average total cost to produce 200 cookies is Rs.0.50. per cookie.The marginal cost is constant at Rs.0.10. for all cookies produced.Refer to this scenario,the total cost to produced 200 cookies is
Microeconomics
A consumer spends all her income on food and clothing. At the current prices of Pf = K10 and Pc = K5, she maximizes utility by purchasing 20 units of food and 50 units of clothing
What is the consumer’s income?
What is the consumer’s marginal rate of substitution of food for clothing at the equilibrium position?
What is the consumer’s income?
What is the consumer’s marginal rate of substitution of food for clothing at the equilibrium position?
Microeconomics
Suppose the product ploduced and sold lsi:k.; Alia Company Limited has a price elasticity of
demand 9.170.7_ If the Manager wants to increase total revenue, what must be done to the price
of the product? Explain_ (8 Marks)
(b) Clearly distinizaish between. increasing and decreastri. g returns to scale. (6 Marks)
• Explain the difference between producer surplus and consumer surplus_ (6 Marks)
Ql_ Suppose the demand and supply functions for Sowbolobo are stated a fonovvs:
QL:1— 128 +9P = 0 and 4:25 + .-7P=O
=
Where Os quantity demanded Os is quantit-i,' supplied and p is price.
(a) Calculate the equilibrium price and quantity for the product_ (S Marks)
(b) Assume. a tax of GH 05 is imposed on the product: what will. be the new equilibrium price and
quantity? (6 Marks)
(o) How much tax. revenue is the government doing to receive from the sale of
scrxbolobo? (6 Ma rks)
demand 9.170.7_ If the Manager wants to increase total revenue, what must be done to the price
of the product? Explain_ (8 Marks)
(b) Clearly distinizaish between. increasing and decreastri. g returns to scale. (6 Marks)
• Explain the difference between producer surplus and consumer surplus_ (6 Marks)
Ql_ Suppose the demand and supply functions for Sowbolobo are stated a fonovvs:
QL:1— 128 +9P = 0 and 4:25 + .-7P=O
=
Where Os quantity demanded Os is quantit-i,' supplied and p is price.
(a) Calculate the equilibrium price and quantity for the product_ (S Marks)
(b) Assume. a tax of GH 05 is imposed on the product: what will. be the new equilibrium price and
quantity? (6 Marks)
(o) How much tax. revenue is the government doing to receive from the sale of
scrxbolobo? (6 Ma rks)
