Microeconomics Answers

Campbell owns an online shop and to sell to three (3) individuals, A, B and C, whose individual demand equations are as follows:

•     A: P = 70 -1.0Q_A

•     B: P = 100 -0.5Q_B

•     C: P = 80 -4.00Q_C

The industry supply equation to be Q_S = 80+ 7P

You are required to 

a.      Determine the equilibrium price and quantity 

b.     Determine the amount that will be purchased by each individual  

Can u give an example about the dynamics analysis from the current Sri lankan economy ?

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With extensive explanation and graph, explain money supply and money demand

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If a production is Q=250K^0.7L^0.3 determine the marginal product of capital and marginal product of labour when k=50 and L=50

Analyze whether social benefits, social costs, etc. are affected by vaccine shortages.

Draw diagrams to illustrate. (Obligatory)

"When it comes to pandemics, inadequacies of the vaccine is an example of negative externalities in the market. Leads to market failure. The unvaccinated population poses a greater risk to society as the virus continues to spread and markets close."

Explain in detail why negative externalities lead to market failure? What exactly are negative externalities? in production or consumption?

In a Nash cournot equilibrium, does an oligopolistic firm produce at less than full capacity, full capacity or more than full capacity? Explain with graphs

1. Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a demand function of q₁ = 70-2p₁ + p₂, where q1 is Firm 1's output, p1 is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is q2 = 70-2p2 + p1. Solve for the Nash-Bertrand equilibrium.

2. Solve for the Nash-Bertrand equilibrium for the firms( described in above question) if both firms have a marginal cost of $0 per unit.

3. Solve for the Nash-Bertrand equilibrium for the firms ( described in above question 1) if Firm 1's marginal cost is $25 per unit and Firm 2's marginal cost is $15 per unit.