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1. The table below gives the demand schedule of bags of cat food
Price
(RM per bag of cat food) | Quantity (bags of cat food per year) | Total Revenue (RM)
5 4
4 8
3 12
2 16
1 20
a. Complete the table by calculating the total revenue for each row.
b. Between which prices is demand elastic? Inelastic? Unit elastic?
Using the matrix X = [2,2,2,2,4,6] Calculate M = ( I2 - X(XT X) "-1" XT ) and show that M is an idempotent matrix (Do not convert fractions into decimal numbers). in Assignment Expert
Find the optimal commodity purchased by a consumer whose utility function and budget constraints are U=(q1)^2 (q2)^2 and 4q1 + 8q2= 96 respectively
A monopoly firm is faced with the following demand function p=13_0.5Q the marginal cost function for the firm is given by 3+4Q and the total fixed cost is four
Determine
(a) The profit maximizing output
(b) The level of supernormal output if any
(C) the output level at the break even point
Briefly explain two exceptions to the definition of an indifference curve
given that a firm has a utility function U=X^0.5Y^0.5, determine the demand function for commodities X and Y
Find consumer surplus. Given that pd=(6-Q) ², ps=14+Q
Mention two opportunity costs for building a dam on a river
A tannery firm established five decades before in a rural village has polluted a river used by
local people for watering, fishing, cleaning and drinking. An organization working to protect
human right verified the illegal action of the firm so that a local government can measurethe loss to farmers and take legal action accordingly. The punishment imposed by the local
government is either to relocate the firm or pay compensation to victims to internalize the
damage made so far and abate future pollution emissions to the socially optimal level of
pollution. The relocation costs the firm 100 million birr while the compensation and
abatement costs it 75 million birr. The tannery firm goes for abatement and compensation.
Should the local government implement the policy change? Why? Does the policy change
have Pareto improvement? Explain?
Clayra allocates P 500.00 of her weekly food budget between two goods: X and Y. Suppose Good X costs P50.00 per piece and Good Y, P100.00 per piece. Construct Clayra’s budget constraint table. And Draw her budget line.
