Microeconomics Answers

Given below are the demand and the supply functions for three interdependent commodities.

Qd1=110 - 4P1+ 3P2 -4P3;Qs1= 2P1 -20

Qd2= 46+ 2P1 -4P2+4P3; Qs2= -14+ 2P2

Qd3= 20 -P1 + 4P2 - 2P3 ;Qs3=2P3 -10

Determine the equilibrium prices and quantities for the three commodity market model. Then compute the prices and cross elasticities of demand for all the three markets and interprete their coefficients

if a duopolist has a linear demand curve of the form Q=400-P.Assuming each firm has total cost (TC=3000+100Q).Calculate the profit maximizing price quantity combinations using the following oligopoly pricing models listed below demonstrating that

a)Under the cournot model,both firms will earn the same level of profit and determine industry profit and explain why this should be the case.

b)Under the cartel model each firm earns a higher profit that under cournot

c)Under the quasi competitive model,the firm will make a loss equivalent to fixed cost

Given below are the demand and supply functions for three interdependant.

Qd=110-4p+3p-4p: Qs=2p-20

Determine the equilibrium price and quantity for the commodity market model.Then compute the price and cross elasticities of demand for the market and interpreted it's coefficient

5. Suppose a monopolist has TC = 100 + 10Q + 2Q2, and the demand curve it faces is P = 90 - 2Q. What will be the price, quantity, and profit for this firm?

If we can produce more of one product without decreasing the production of the other this means that:

Suppose the short run productiin function can be represented by Q=60,000L²-1000L^3. then, determine

A) the level labor employement that maximizes the level of output

B) the level of employement that maximizes APL and the maximum APL

What is the average total cost of producing 40 units per day having cost(dollar per unit) of 1-8, and output (units per day) of 10-50. With the marginal cost on 40, average cost of 50, and the average total cost just in between these two.

The graph of Q=60,000L²-1000L³

. A monopolist producing and selling cooking gas faces a demand curve,

Q = 100 – 0.2P. If Total Cost is TC=4000+ 50Q.

i. Determine the quantity of cooking gas she will produce and the price she will charge to maximize profits and determine her profit.

ii. Explain how her profits she will affected if regulators forced her to operate like a perfectly competitive firm.

iii. Illustrate and compute dead-weight loss and lost consumer surplus associated with her Monopoly operations.

a. Suppose the joint cost function of a firm producing two products X and Y IS given 

the graph of TC=400+20Q-2Q²+2/3Q³