Microeconomics Answers

Uncle Jose\'s Farm has costs and revenue as seen in the graph below. Uncle Jose knows how well you\'ve been doing in your economics course and has asked for your help in determining how to make as much profit as possible.

Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui's economic profit from running her own business?

The outbreak of Bird Flu in 1997 resulted in the Hong Kong government ordering the culling of more than 1.5 million chickens. The culling of chickens was simultaneously accompanied by consumers reducing their demand for life chickens due to the bird flu. Using demand and supply analysis, what was the impact on price and quantity in the market for life chickens?

Three Step Tariff. Determine the Total Tariff.
D: P = 400 - Q
SD: P = 40 + Q
Sw: P = 80
Tariff: P = 40

Three Step Tariff. Determine the SWL.
D: P = 400 - Q
SD: P = 40 + Q
Sw: P = 80
Tariff: P = 40

Two Step Tariff. Determine the equivalent quota.
D: P = 124 - 2Q
S: P = 44 + 2Q
Tariff: P = 40.

Quota. Determine the SWL.
D: P = 840 - 3Q
S: P = 240 + 3Q
Quota: Q = 80.

Comparative Advantage. Determine the terms of trade.
Andora: 1 shirt = 2 hrs. 1 bicycle = 40 hrs.
Bolivia: 1 shirt = 5 hrs. 1 bicycle = 60 hrs

Foreign Exchange. Determine the size of the government purchase.
D: P = 680 - 2Q
S: P = 40 + 2Q
Target: P = 500

Military Draft. Determine the transfer. ($millions)
D: Q = 850
S: P = 200 + 4Q
Draft: P = 50