Microeconomics Answers

A is company has the variable cost function
Tvc=200q1 + 9q2 + 0.25 q3.
If the company fixed cost are equal to Rs 150 lakh.then find out
1.total cost function.
2.Marginal cost
3.Average variable cost function

A manufacturer is in the market for shirts. When the income of the population changed by 12%, quantity demanded for shirts change from 8,000 shirts per month to 8,500. Calculate income elasticity?

using properly labelled diagrams illustrate what will happen to the equilibrium price and
quantity of muesli (ceteris paribus) in the following scenarios
1. research has shown that muesli is good for the heart.
2. the ongoing drought has affected grain(one of the ingredients for muesli) production
3 Discuss any 3 factors that can cause an increase in the demand for mue

Successfully employing a discriminatory pricing strategy will be difficult for a firm if:

using relevant example differentiate between monopoly and monopolistic competition
explain the implication and short coming of the kinked demand curve in an oligopolistic market

Suppose you are the mananaging director of a firm that supplies three goods: laptops, USB drives and external hard drives. The price elasticity of the demand for laptops is 2.0; USB drives it is 1, 00; and for external hard drives it is 0. 53. The firm is experiencing serious cash flow problems and you have to increase total revenue as soon as possible. You are in a position to set the prices for these goods. What would be your pricing strategy for each product? Motivate your decisions. (10)

suppose that you are the managing director of a firm that supplies three goods: laptops, USB drives and external hard drives. The price elasticity of the demand for laptops is 2.0; for USB drives it is 1.00; and for external hard drives it is 0.53. the firm is experiencing serious cash flow problems and you have to increase total revenue as soon as possible. you are in a position to set the prices for these goods. What would be your pricing strategy for each product?

Suppose she opens her shop in a building she owns, which she could be renting out to someone else for $1,000 a month. In addition, A to Z Rental required her to sign a one year lease on the coolers needed for her shop and the rent is $200 a month. Hiring three assistants costs her $1,800 a month. Finally, the flowers, vases and other material needed for making flower arrangements average $5,000 a month. What is her long run fixed cost?

The marketing manager tried to mitigate this competitive disadvantage by freight equalization; so that end customers would pay the same amount of shipping costs as the West Coast competition charged, regardless of where they were located. This met with some insignificant success because timeliness of delivery was another important issue. However, this did affect the margins negatively since the company now is taking the hit for the less-than-truck-load shipments to West Coast customers.
What are some of the reasons to measure the performance metrics (KPIs)? List 4 specific metrics to access success, be as specific as possible. How would the metrics be measured? Do you believe they should be shared with employees?
For this assignment, you will identify 2 subjective, qualitative factors and discuss 2 quantitative factors to consider. Once you have explained each select the one out of each, qualitative and quantitative listed that you recommend most.

If Eskom (assumed sole supplier of electricity) is earning economic profits in the short run. Explain using a well labelled diagram how much output Eskom will produce and at what price this output will be sold if Eskom maximises profits.

1.1Explain the implications and short comings of the kinked demand curve in an oligopolistic market.
1.2Using relevant examples differentiate between monopoly and monopolistic competition.