Microeconomics Answers

A monopolist has cost function TC=10+2Q, where TC is the total cost of producing Q units of output. Demand in this market is given by the equation Q=14-P , where P stands for the price. Calculate the profite that the monopolist will be marking.

Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0, by how much could the money supply expand if the Fed purchased $2 billion worth of bonds?

The local shopping centre has free parking, but the centre is always very busy and it usually takes 30 minutes to find a parking space. Today when you found a vacant spot, Harry also wanted it. Is parking really free at this shopping centre? If not, what did it cost you to park today? When you parked your car today, did you impose any costs on Harry? Explain your answers.

Which of the following statements are positive and

which are normative:

a A cut in wages will reduce the number of people

willing to work.

b High interest rates prohibit many young people

from buying their first home.

c No family ought to pay more than 25 per cent of its

income in taxes.

d The government should reduce its expenditure on

roads and increase its expenditure on railways.

If the supply curve is perfectly elastic and demand is linear and downward sloping. what is tne ettect of a sl specific tax collected from producers on equilibrium price and quantity?

If the supply curve is perfectly elastic and demand is linear and downward sloping. what is tne ettect of a sl specific tax collected from producers on equilibrium price and quantity, and wnat is the incidence on consumers? Why?

Consider the following TR and TC function for a firm operating in a perfect competition

market:

TR = 21Q

TC = 1/3Q3 – 5Q2 + 42Q + 81

A. Determine the profit maximizing or loss minimizing equilibrium level of output?

B. Compute the level of profit or loss at the above equilibrium quantity and comment on

the decision of the firm?

All normal goods whether they are economics goods , services or simply leisure will always

have IE and SE move in the same direction. True , False or Uncertain.

The price of cheese rises from $6 to $10 per pound, while the price of coke remains $3 per glass. For a consumer with a constant income of $3,000, show what happens to consumption of coke and cheese

How to compute the fixed cost,total cost,marshalls cost average variable cost,average fixed cost and the average of total cost of farmer banjo..