Microeconomics Answers

The market for CDs is in equilibrium. Then an increase in the supply of CD players leads to a decrease in the price of CD players and, simultaneously, a technological innovation reduces the cost of manufacturing CDs. The equilibrium price of CDs will

Given the nature and effects that the Russia and Ukraine war had on economic development discuss using neocolonialism theory. and advice on how should policy makers respond to these shocks?

if the elasticity of demand is 1.6 and a firm increases the price of its product by 10% ,it would expect its total revenue to

Assume a linear demand function of the form:

Qd = 120 - 5P and a linear supply curve of the form:

Qs = -30 + 10P

Using these demand and supply functions, answer the following questions.

If the price elasticity of demand for tractors priced between $4,000 and $6,000 is -0.75 (using the mid-point method), what will be the percentage change in quantity demanded when the price for tractors falls from $6,000 to $4,000?

A consumer’s utility function over goods X and Y is U(X,Y)=XY + 10Y. Suppose this

consumer has an income of $110, the price of good Y is $2, and the price of good X

is $1. What is the optimal consumption bundle (X*,Y*) for this consumer?

A firm has the following total cost function 𝑻𝑪 = 𝟏𝟎𝟎𝒒 − 𝟓𝒒² + 𝟎. 𝟓𝒒^3.

a. Find the average cost function.

A firm has the following demand function 𝑷 = 𝟐𝟎𝟎 − 𝟐𝑸 and the average cost of 𝑨𝑪 = 𝟏𝟎𝟎/𝑸 + 𝟑𝑸 − 𝟐𝟎.

a. Find the profit function.

b. Estimate the marginal cost function.

c. Obtain the production that maximizes the profit.

d. Evaluate the average cost and the marginal cost at the maximizing production level.

Consider a firm with the following production function 𝑸 = 𝟓𝟎𝟎𝟎𝑳 − 𝟐𝑳².

a. Find the maximum production level.

b. How many units of labor are needed at that point.

c. Obtain the function of marginal product of labor (𝑀𝑅𝐿).

d. Graph the production function and the 𝑀𝑅�