Microeconomics Answers

P($)       Q

70         2800

60         3000

Calculate Price Elasticity of Demand using Mid-Point Method.

A marketing research conducted by firm company result shows the firms production function and its demand as the following equation.  And the demand function is given by 100. Using the given information answer the following question.

If you are this firms manager how are you suggest your firms owner to add the input x in order to be at maximum average production? Support your suggestion with evidence from the production function given

2) Consider the following hypothesis test:

H 0 : μ = 16

H a : μ ≠ 16

A sample of 50 provided a sample mean of 15.15. The population standard deviation is 3.

a) Compute the value of the test statistic.

b) What is the p-value?

c) Write the rejection rule using the p-value. Using α = 0.05, what is your conclusion?

d) Write the rejection rule using the critical value. What is your conclusion?

Draw a set of indifference curves for a person that is risk neutral (a person that does not care about risk one way or the other).

Suppose the government imposes a price cap on bottle show the effect in bottled water market

The quantity supplied of a commodity at a price of Birr 10 per unit is 500 units. Its price elasticity of supply is 0.5 A) Calculate the price at which its quantity supplied is 600 units. B) What quantity of this commodity will the seller supplied when the price rise at Birr 12 per unit? C) What quantity of this commodity will the sellers supply when price rises by Birr 4 per unit?

What is the main causes of monopoly power of producers in an economy

compare and contrast the difference between perfect competition market and monopolistic market in an economy

Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a success.

Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a success.