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Microeconomics
If the factor supply curve facing a monopolist is the market supply curve, and if the market supply curve is an upward sloping straight line, the marginal expenditure curve
a. lies below the market supply curve.
b. lies above the market supply curve.
c. is the market supply curve.
d. crosses the market supply curve at the market wage rate.
e. Either A or B is possible.
a. lies below the market supply curve.
b. lies above the market supply curve.
c. is the market supply curve.
d. crosses the market supply curve at the market wage rate.
e. Either A or B is possible.
Microeconomics
Suppose a labour market has perfectly inelastic supply that is composed of union and non-union workers, and both groups of workers initially earn the perfectly competitive wage. What happens to the equilibrium employment level and wage for union workers if the union exercises its bargaining power?
a. Both increase.
b. Employment increases and wage declines.
c. Wage increases and employment declines.
d. Both decline.
a. Both increase.
b. Employment increases and wage declines.
c. Wage increases and employment declines.
d. Both decline.
Microeconomics
Does competition exist in perfectly competitive market?
Microeconomics
Given the following information:
P = 20 – 2Q
MC = AC = 4
a) Determine the profit-maximizing output and price charged by a monopolist.
b) Determine the competitive price and output.
P = 20 – 2Q
MC = AC = 4
a) Determine the profit-maximizing output and price charged by a monopolist.
b) Determine the competitive price and output.
Microeconomics
What is the welfare impact of a subsidy policy?
Select one
a. Producer surplus increases, consumer surplus declines, and total welfare declines.
b. Producer and consumer surplus increase, and these gains are larger than the government cost.
c. Producer and consumer surplus increase, and these gains are smaller than the government cost.
d. Producer surplus increases, consumer surplus declines, and total welfare increases due to the subsidy program.
Select one
a. Producer surplus increases, consumer surplus declines, and total welfare declines.
b. Producer and consumer surplus increase, and these gains are larger than the government cost.
c. Producer and consumer surplus increase, and these gains are smaller than the government cost.
d. Producer surplus increases, consumer surplus declines, and total welfare increases due to the subsidy program.
Microeconomics
A logarithmic variable cost function implies that, select one
a. marginal cost is increasing at a decreasing rate.
b. marginal cost is increasing at an increasing rate.
c. marginal cost is constant.
d. marginal cost is decreasing as quantity increases.
a. marginal cost is increasing at a decreasing rate.
b. marginal cost is increasing at an increasing rate.
c. marginal cost is constant.
d. marginal cost is decreasing as quantity increases.
Microeconomics
Use the data in the following table to answer the questions at the end of this Part 1.
Market segment Sales (‘000 units) Advertising
expenditure
(RM’000) Selling Price
(RM per unit) Disposable
Income
(RM’000)
1 160 150 15.00 19.0
2 220 160 13.50 17.5
3 140 50 16.50 14.0
4 190 190 14.50 21.0
5 130 90 17.00 15.5
6 160 60 16.00 14.5
7 200 140 13.00 21.5
8 150 110 18.00 18.0
9 210 200 12.00 18.5
10 190 100 15.50 20.0
a) Add advertising expenditure as another independent variable and regress sales on selling price, disposable income and advertising expenditure.
I. What is the estimated regression equation? II. How “good” is the estimated model?
III. Discuss the implication of the results of the estimated regression equation.
Market segment Sales (‘000 units) Advertising
expenditure
(RM’000) Selling Price
(RM per unit) Disposable
Income
(RM’000)
1 160 150 15.00 19.0
2 220 160 13.50 17.5
3 140 50 16.50 14.0
4 190 190 14.50 21.0
5 130 90 17.00 15.5
6 160 60 16.00 14.5
7 200 140 13.00 21.5
8 150 110 18.00 18.0
9 210 200 12.00 18.5
10 190 100 15.50 20.0
a) Add advertising expenditure as another independent variable and regress sales on selling price, disposable income and advertising expenditure.
I. What is the estimated regression equation? II. How “good” is the estimated model?
III. Discuss the implication of the results of the estimated regression equation.
Microeconomics
Use the data in the following table to answer the questions at the end of this Part 1.
Market segment Sales (‘000 units) Advertising
expenditure
(RM’000)
Selling Price
(RM per unit)
Disposable
Income
(RM’000)
1 160 150 15.00 19.0
2 220 160 13.50 17.5
3 140 50 16.50 14.0
4 190 190 14.50 21.0
5 130 90 17.00 15.5
6 160 60 16.00 14.5
7 200 140 13.00 21.5
8 150 110 18.00 18.0
9 210 200 12.00 18.5
10 190 100 15.50 20.0
Add disposable income as an independent variable and regress sales on both selling price and
disposable income.
I. What is the estimated regression equation?
II. Is the co-efficient on selling price in (a) and (b) the same? Why or why not?
III. What is the income elasticity according to the model at a disposable income level of
RM18,500 and at a selling price of RM12.00 per unit?
Market segment Sales (‘000 units) Advertising
expenditure
(RM’000)
Selling Price
(RM per unit)
Disposable
Income
(RM’000)
1 160 150 15.00 19.0
2 220 160 13.50 17.5
3 140 50 16.50 14.0
4 190 190 14.50 21.0
5 130 90 17.00 15.5
6 160 60 16.00 14.5
7 200 140 13.00 21.5
8 150 110 18.00 18.0
9 210 200 12.00 18.5
10 190 100 15.50 20.0
Add disposable income as an independent variable and regress sales on both selling price and
disposable income.
I. What is the estimated regression equation?
II. Is the co-efficient on selling price in (a) and (b) the same? Why or why not?
III. What is the income elasticity according to the model at a disposable income level of
RM18,500 and at a selling price of RM12.00 per unit?
Microeconomics
Scarcity and Choice go together . Explain?
Microeconomics
Fixed Cost is 15 and variable cost is 2 per unit, find:
a) write the function for Total Cost (TC), Average Cost (AC) and Marginal Cost (MC)
b) determine the value for Q that minimum AC
c) prove that the answer in (b) AC=MC
a) write the function for Total Cost (TC), Average Cost (AC) and Marginal Cost (MC)
b) determine the value for Q that minimum AC
c) prove that the answer in (b) AC=MC
