Microeconomics Answers

if the cost of the skilled labour is three times the cost if unskilled labour,, the profit maximizing firm will vary the quantity of each type of labour until ?

Qx = 1800 –1/4Px + 1/8Py – 1/3Pz + 1/5Y

Where Qx represents quantity demanded of good x, Px is price of good x, Py is price of good y, Pz is price of good z and Y is income.
Explain whether the law of demand is valid here.

A firm’s demand function for good x is estimated as follows:-

Qx = 1800 –1/4Px + 1/8Py – 1/3Pz + 1/5Y

Where Qx represents quantity demanded of good x, Px is price of good x, Py is price of good y, Pz is price of good z and Y is income.
Explain whether the law of demand is valid here

if an individual earns $ 50 for 40 years and hopes to live for 10 years in retirement what is this person's consumption each year .(assuming zero interest rate)

A firm produces candles.the market for candles is highly competitive with candles currently selling for $10.the firm's shortrun total cost function is c=200+0.2q so it's marginal cost is mc=0.4q.what is the firm's profit maximizing quantity?

The Price of food increased during the past year.
a. Explain why the law of demand applies to ood just as it does to other goods and services.
b. Eplain how the substitution effecct infues foodpurchase when the price of food rises and other things remain the same.
c. Explain how the income effect influences food purchases and provide some examples of the income effect.

Suppose that Omar’s marginal utility for cups of coffee is constant at 3.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee?

illustrate and explain using diagrams, the difference between long run supply in a constant cost individual firm and industry and an increasing cost firm and industry

What market structure is used to benchmark allocative efficiency and why do we use it? Illustrate and explain.

in a perfectly competitive market, the HHI is ?