Microeconomics Answers

1. Use the following market demand and supply equations to answer questions a and b
Qd = 100 – P, and Qs = 10 + 2P and
ATC = 0.5Q

a) Calculate the competitive market’s profit-maximizing price, quantity, and profit
b)Now assume, the market above is a Monopolist’s market. Calculate the Monopolist’s profit-maximizing price, quantity, and profit.
c)Use one graph to show everything you calculated in part a and b of this question. When you look at the graph, how is the price, quantity, and profit of the monopolist different from the competitive market?

What is market equilibrium ??

Hi,

What will happen to a supply and demand diagram when there is a rise in price of a substitute good and a labour strike in the industry.

Also, why are some medications not available in the NHS?

Where do the marginal adjustment to production end? Explain your answer by a figure.

Suppose that the price prevailing in competitive market rises, perhaps because of an increase in market demand, how a competitive firm responds to the price increase?

a. What is your explanation on prevailing cost conditions of the chosen firm?

b. Do you think that a reduction in the firm’s variable cost would be beneficial for the company in the short run? If yes, why, If no, why not?
c. Suggest how the firm can reduce the total cost of production?
e. What is the relation between the firm’s output and its marginal cost?
f. Draw graphs for MC, TC and MR and compare.

Rachel earns $100,000 a year as a marketing and sales excutive. She is 48 years old and single. She is interested in saving for her eventual retirement. Which alternative do you recommended

Using suitable illustrations and examples describe in detail the advantages and disadvantages of the monopoly

Until recently,you worked for a software development firm at a yearly salary of $35000.Now you decide to open your business. You quit your job,cash in $10000 savings account at a 5% interest and use the money to buy computer hardware to use in your business. You also convert a basement apartment in your house, which you have been renting for $250 a month into your workplace for your new software firm. You lease some office equipment for $3600 a year and hire two part time programmers whose combined salary is $25000 a year. Cost of providing heat and light is $50 a month. What are the total annual explicit costs of your new business? What are the total annual implicit costs? At the end of your first year,your accountant informs you that your total sales for the year amounted to $55000. She congratulates you on a profitable year. Are her congratulations warranted. Why or why not?

Discuss the two principles of justice as mentioned by rawls. Do you think rawls theory of justice is relevant for the third world countries