Microeconomics Answers

Analysis of Pricing: You manage The Really Annoying Bicycle Messenger Company

which makes deliveries for lawyers, consultants, accountants, and lobbyists in the much of

Washington DC including Georgetown. The company makes deliveries of documents and small

packages at a price of $10.00 each. The average number of deliveries in one month is 31,000.

The owners of the Really Annoying Bicycle Co. would like to increase its sales and profits. They

know that, if price is lowered, they will generate more deliveries. So they run an experiment.

Price is lowered to $9.00 per delivery in May and the number of deliveries increases to 33,000.

b. Is elasticity elastic, inelastic or neither?

steak meals MU of steak price per hamburger meals MU of hamburger price of
per month meal steak meal per month meals hamburger meal
1 20 10 1 15 5
2 15 10 2 8 5
3 12 10 3 6 5
4 10 10 4 4 5
5 8 10 5 2 5

using marginal utility(MU) schedule given budget is 45 and assume the price per hamburger meal fall from 5 to 2 all other factor held constant what is the total utility realized?

Supply Function Q= 15.000+350P
Demand Function Q=35.000-150P
Cost Function=TC=40+2Q

a)Find the Marginal Revenue of this firm
b)Find the Marginal Cost of this firm
c)Find the optimal output for this firm
d)Find the optimal total revenue and profit for this firm
e)In a perfectly competitive market, firms earn zero profit in the long run. Why do firms stay in business if profit is zero ?

Suppose that the size of the labour force increases, what would happen to the unemployment rate? Assume that the number of people unemployed does not change.

Two firms, Alpha Vineyard and Beta Winery, produce and sell wine. The demand for
Alpha’s wine is given by the equation,
QA = 200 − PA + PB.
In this equation, the price of Alpha’s wine is PA per bottle, and the price of Beta’s wine is
PB per bottle. Alpha Vineyard has a marginal cost of MC A = $20 per bottle, and a fixed
cost of FC A = $6000. The demand for Beta’s wine is given by the equation,
QB = 9000 − 100PB + 40PA.

Which firm has the greater market power? Explain.

Two firms, Alpha Vineyard and Beta Winery, produce and sell wine. The demand for
Alpha’s wine is given by the equation,
QA = 200 − PA + PB.
In this equation, the price of Alpha’s wine is PA per bottle, and the price of Beta’s wine is
PB per bottle. Alpha Vineyard has a marginal cost of MC A = $20 per bottle, and a fixed
cost of FC A = $6000. The demand for Beta’s wine is given by the equation,
QB = 9000 − 100PB + 40PA.

Are the bottles of wine produced by Alpha Vineyard and Beta Winery, homogeneous
products or heterogeneous products? Your answer must reference the two firms’
demand functions

discuss whether preferential trade agreements (or regionalism) are helping or hindering the achievement of global free trade.

Generate a demand schedule and demand curve from the following equation:=30-4P for prices between 1 and 5 inclusive

Using the marginal utility schedule in question 8, begin in consumer equilibrium, and assume the price per hamburger meal falls from $5 to $2, all other factor held constant what is the total utility realized
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Suppose you consume three pounds of beef and five pounds of pork per month. The price of beef is $1.50 per pound, and pork is $2.00 per pound. Assuming you have studied economics and achieved consumer equilibrium, the ratio of marginal utility of beef to the marginal utility of pork

tell me the answer of above question if u dont have any time to solve tell me the key concepts plzzzzzzzzzz