Microeconomics Answers

the marginal product of labour function for International trading Inc. is given by the equation MPL= 10K^0.5/L^0.5 Currently the firm is using 100 units of capital and 121 units of labour. Given the very specialized nature of the capital equipment, it takes six to nine months to increase the capital stock, but the rate of labour input can be varied daily. If the price of labour is $10 per unit and the price of output is $2 per unit, is the firm operating efficiently in the short run? if not why and determine the optimal rate of labour input.

Why the 'bliss point' of circle indifferent curves always in the center of circles? Anyone can prove that with mathematic function?

demand and supply in the wheat market are given by:
QD=20-10P and QS= -5+10P
where Q is millions of cars and P is price per car.
a) Find the equilibrium price and quantity.
b) Calculate the price elasticity of demand at equilibrium and interpret your result.
c) Suppose that the government wishes to support farm income and thus sets a price of $1.50, Find the size of the farm surplus or shortage.
d) What is the cost of this program to the government?
e) If the government introduces a tax of $1, find the new supply curve and the equilibrium price and quantity.

Find the slope of an assumed linear demand curve for garri, when Mr. Anthony purchase 1000 quantities at N200 per plastic and 500 quantities at N350 per plastic?

Please analyze the impacts of the following events on the equilibrium price and equilibrium quantity in the coffee market.
(A)Event one: consumer’s incomes decrease due to economic recession
(B)Event two: the price of imported coffee bean rises.
(C)Event one and Event two

relate the basic concept of economics to the three economic units

a)Briefly explain the impact of subsidies of the gas market in malaysia?
b) Discuss the factor that have driven the increasing domestic demand for gas

a) Briefly, explain the impact of subsidies of the gas market in Malaysia?

b) Discuss the factors that have driven the increasing domestic demand for gas

Many people search out and purchase "bargains" at garage and yard sales. What are some implicit costs associated with this type of shopping?

Suppose a monopolistically competitive industry has 8 firms with identical costs.
(a) Given the data in the table below, calculate the long-run price and quantity
produced by the typical firm.
(b) Is the industry efficient or not? Draw a graph to illustrate your idea.
(c) Would this industry be more efficient if it were competitive?