Microeconomics Answers

which object has the lowest elasticity of supply ?
A.luxury goods
B.necessity good
C.Perishable good
D.none of the above

Assuming the market equilibrium price for wheat is $5 per bushel, draw the total revenue and the marginal revenue curves for the typical wheat farmer in the same graph. Explain how marginal revenue and price are related to the total revenue curve.

From 1985(quarter1 to quarter 4) to 2017(quarter 1 to 4).
Find the
1. Nation income (GNP)
2. Gross domestic product (GDP)
3. Inflation rate
4. Exchange rate
5. Unemployment rate
6. Infant mortality rate

You have opened your own word-processing service. You bought a personal computer, and paid $5,000 for it. However, due to the cost changes in the computer industry, the current price of an equivalent machine is $2,500. You could sell any used machine for $1,000. If you were not word processing, you could earn $20,000 per year at an alternative job. Assume that the interest rate is 10%. You can also hire an assistant who can do everything that you can do for $20,000 per year (you would still continue to do word processing).

One person using one computer can produce 11,000 typed pages per year, and the price per page for your service is $2.

You are considering three options: (1) expand your business by hiring an assistant; (2) leave your business the way it is; (3) shut down. Based on the costs and revenues above, which should you do? Explain and show any relevant calculations.

3) You've been hired by an unprofitable firm to determine whether it should shut down its operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although you don't know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed its total revenue. You know that the marginal cost of the last unit is $30. Should the firm continue to operate at a loss? Carefully explain your answer.

Why is the demand curve facing a monopolistic downward sloping while the demand curve facing a perfectly competitive firm is horizontal?

Explain why a perfectly competitive firm would or would not advertise?

A monopolistic firm operates in two seperate markets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows;

Market A : P=15-Q Market B: P=11-Q

A company estimates its total cost function : TC=4Q

a)Quantity,total revenue and profit when company maximizes its profit and charges the same price in both markets

b)Quantity,total revenue and profit when the company charges different prices in each market and maximizes its total profit

Kog a brewer of a local beer called daa notes that when the price of daa reduces by GH5 the quantity demanded for daa increases by 5 gallons whereas the quantity supplied of daa reduces by 20 gallons. She indicated that the maximum quantity of daa demand and supply are 1500 gallons and negative 600 gallons respectively when the price of daa falls to zero.a) find the equilibrum price and quantity.