Microeconomics Answers

Respond to the following question in at least three well composed paragraphs: What are the necessary conditions for a monopoly position in the market to be established?

Which of the following is always downward-sloping? (4 Marks)

a. The marginal cost curve when it is below the average total cost curve.

b. The marginal cost curve when it is above the average total cost curve.

c. The average total cost curve when it is below the marginal cost curve.

d. The average total cost curve when it is above the marginal cost curve

: Qd = 20,000 - 3P Qs = 15,000 + 2P

Where ‘P’ is the price in rupees of a renewable energy resources, ‘Qd’ is quantity demanded for renewable energy resources, a ‘Qs’ is quantity supplied for renewable energy resources. Requirements:

a) Calculate the equilibrium price and equilibrium quantity of renewable energy resources.

b) Calculate price elasticity of supply using point elasticity method when renewable energy sector is in equilibrium. Also, interpret the result

. c) What will happen to the equilibrium quantity and equilibrium price of renewable energy resources if energy sector improves the technology? (Graph is not required)

Afghanistan reported its first COVID-19 case on February 24, 2020. As the infection spread, the

the government tightened containment measures, including introducing screening at ports of entry, quarantine for infected people, and closure of public places for gathering.

In May, it waived electricity bills of Af 1,000 (US$13) for each family residence in Kabul for two

months. The decision benefited more than 1.5 million Kabul residents.

In May, it waived electricity bills of Af 1,000 (US$13) for each family residence in Kabul for two months. The decision benefited more than 1.5 million Kabul residents.

• Draw a graph using the budget line and indifference curve to indicate the substitution effects and income effects for the families in Afghanistan after the government waived electricity bills. Assumed that there are two goods: electricity and other goods and services. 
• Explain if the electricity is normal goods or inferior goods, and the sign of total effects is negative or positive?

ben earns by giving guitar lessons at 20 per hour. if he spends 10 hours planting ornamental plants that buys 100 worth of pots and cutting. what are the opportunity cost

Before Eid-UL-Fitr, the price of juice was Rs.100 a box in Karachi, and Hayat Khan was willing to buy 10 juice boxes. After the Eid-UL-Fitr holidays, the price has gone up to Rs.120 a box, and Khan is now willing to buy 8 juice boxes. Is khan’s demand for juice boxes, elastic or inelastic? What is Khan’s elasticity of demand? Draw Khan’s demand curve, label everything clearly.

Why is it the case in a long-run monopolistically competitive equilibrium that the firm’s demand curve is tangent to its average cost curve? Why could it not be a long-run equilibrium if the demand curve “cut through” the average cost curve? (Max. 500 words)

Why is it the case in a long-run monopolistically competitive equilibrium that the firm’s demand curve is tangent to its average cost curve? Why could it not be a long-run equilibrium if the demand curve “cut through” the average cost curve? (Max. 500 words)

two drivers johnson and Angela each driver up to a gas station ,before looking at the price each places an order johnson says I'd like 5 liters of gas, angela says I'd like 300 worth of gas ,what is each drivers price elasticity of demand

Ben earns by giving guitar lessons at 20 per hour. If he spends 10 hours planting ornamental plants and buys 100 worth of pots and cuttings, ehat are the opportunity costs? Compute the accounting profit and economic profit if Ben sold the plants at 200.