Microeconomics Answers

Canada is a major producer of weed because the agricultural sector is so large relative to the size of the population they are also major exporter is not surprisingly they both had for open access to foreign markets between 1990 and 2000 agricultural goods and food by product exports increased by more than 100% to continue their strike they will have to not only win the Battle for lowered tariffs but also battling a world prices brought experience the heavy pressure of falling prices in order to remain competitive economy and farmers will have to continue to increase their own productivity does the problem of Us Farmers and their continual contribution to lower prices in an effort to maintain profitability through productivity increases is played out on the world stage as well show the international Financial institutions such as the wto interview in the international agricultural market to stabilize prices who will be held and who will suffer if it did

How does a firm decide whether to shut down production if it has zero fixed cost? What is the implication on entry and exit in this industry?

Answer all the questions

1. Consider the general demand function: Qd = 3000 - 10P + 0.06M + 20Pr where Qd quantity demanded, P is price, M is money income and Pr is price of related goods.

i) Derive the equation for the demand function when A=$50,000 and Pr=$250

ii) Interpret the intercept and slope parameters of the demand function derived in part (i).

iii) Using the demand function in part (i) , calculate quantity demanded when the price of the good is $10.

(iv) Derive the inverse of the demand function in part (i). Using the inverse demand function calculate the demand price for 100 units of the good.

Please show all calulations for each sub-question. Thank you

1. Assess the following functions (15 points):

1. 𝑓 ′(𝑥) = 𝑥 2 + 6𝑥 + 2

2. 𝑓 ′(𝑥) = 10𝑥 − 2𝑥 2 + 5 

a. Find the stationary points.

b. Determine whether the stationary point is a maximum or minimum.

c. Draw the corresponding curves, they can be in the same graph.

Daska and Sialkot are the major supplier of surgical instruments. The labor of Sialkot decided to go on protest and stop working. What will happen to the market of surgical instruments of Sialkot.

Equilibrium in any market can be described as that point where demand is equal to supply.  

There is an upsurge in the temperature and due to this heat shock, what will happen to the market for lemon soda in the Mianwali.

1) A is a small country that produces and consumes Coffee beans. The world price of Coffee beans is $1 per bag, and A's domestic demand and supply for Coffee beans are governed by the following equations: Demand: QD = 8 -P ; Supply: QS = P, where P is in dollars per bag and Q is in bags of Coffee beans.

A firm has the following demand function 𝑷 = 𝟔𝟎 − 𝟎. 𝟓𝑸 and its total cost are

defined by 𝑻𝑪 = 𝟏𝟑 + 𝑸.

a. Find the maximum revenue.

b. Find the production to optimise the profit.

c. Verify if that the marginal revenue and marginal cost are the same at

the profit maximising production level.

A Firm has the following production function 𝑸 = 𝟐𝟎𝑳 − 𝟎. 𝟒𝑳 𝟐.

a.Using differential calculus find the unit of labor that maximizes the production.

b. Estimate function of Marginal product of labor.

c. Obtain the Average product of labor.

d. Find the point at which the marginal product of labor is equal to the average cost.