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Given that TC = 20,000 + 4 Q + 0.5 Q2
, determine the equations for TFC, TVC, AFC, AVC, AC,
MC. Confirm that MC = AVC at the minimum point of the AVC curve.
What is main difference between fixed input and variable input? Give two examples for each?
Consider a consumer who consumes two goods, X and Y. Show the impact of fall in price
of good Y on the consumption of good Y (i) if good Y is an inferior good (ii) good Y is a Giffen
good.
Draw the marginal-cost and average-total-cost curves for a typical firm. Explain why the
curves have the shapes that they do and why they cross where they do.
Using ordinal approach show the consumer equilibrium. How will a change in income
affect the consumer equilibrium if x is an inferior good and Y normal good (use X good on
horizontal axis and Y on Vertical axis).
Explain the relationship between average product and average cost curve?
Suppose the government removes a tax on buyers of a good and levies a tax of the same size
on sellers of the good. How does this change in tax policy affect the price that buyers pay sellers
for this good including the tax, the amount sellers receive net of the tax, and the quantity of the
good sold?
Qd = 90 – 6P
Qs = - 20 + 4P
Calculate consumer surplus and producer surplus at the equilibrium price?
“A world wide drought will increase the total revenue earned by the farmers staying in
Haryana. However, a drought in Haryana will reduce their total revenue.” Explain.
what role does the elasticity plays in determining dead-weight-loss of tax?
