Microeconomics Answers

given the data solve the following asked to maximize profit in a monopoly market

(1) Q = 100 - p; (demand curve for firm output)

(2) TC(Q) = 100 + 20Q +Q2; (cost curve)

a. Compute the MR and MC curves

b. Compute the profit maximizing output

c. Compute the price of that output that maximizes profit

d. Compute the profit to be realized for that output

Helen has been selling designer clothing and accessories for pets through her online ecommerce store, primarily to Canadian pet owners. She wants to now expand to the United States and is considering a variety of Digital marketing strategies. Since she has been operating the business profitably for a few years, she has allocated a high budget towards marketing for her US expansion plans and believes she first needs to increase the brand awareness for her business.

Identify at least 3 digital marketing strategies that Helen should use, given her goals and the budget allocated. Provide the reasoning behind your decision.

Also identify at least 1 important metric that he should track, associated with each of the strategies identified.

Ketchup is a complement for hot dogs. If the price of hot dog rises, what happens in the market for ketchup?

 Suppose that price of one of the two goods increases while price of the other good and the total budget of the consumer kept unchanged. i) What is the consequence on the budget line and the purchasing power of the consumer? Explain logically with illustration. ii) Will the consumer be better off (be on the higher indifference curve) or worse off (be on the lower indifference curve)? iii) Show the changes in welfare in terms of income effect and substitution effect

When the Botswana Meat Commission (BMC) increased beef price from P10 per Kg to

P16.50 per Kg, the supply of beef cattle to the BMC rose from six hundred per week to 900

per week. Use the midpoint formula to calculate the coefficient of elasticity of supply for

beef to the BMC and interpret the elasticity coefficient.

Whaling was the chief occupation of New Bedford, Massachusetts, in the early nine

teenth century. Much whaling labor was highly skilled and the labor all lived in New

Bedford. Suppose that the market for whaling labor was competitive initially.

(a) True or False: If the owners of whaling ships in New Bedford band together to set

up a central hiring hall, the employment of whaling labor will fall and the income

of the owners will rise.

(b) True or False: If the owners now charge to each laborer a personal fee for entrance

to the hiring hall, their income will rise still further and employment will rise back

to the competitive level.

Why is competition good for the consumer from an economic insight perspective?

Explain any 5 characteristics of oligopoly

Explain the economic impact of covid 19 on the south African economy

Explain the second fundamental theorem of welfare economic.