Use micro (and relevant macro) economic analysis to justify your decision of relocating your business from one country to a particular country.
To compute economic profits, which costs are used?
Distinguish between cardinal and ordinal approach and compare which approach is better to explain the concept of utility.
1. An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes.
a. Who has the absolute advantage in coffee? Explain.
b. Who has the comparative advantage in coffee? Explain.
c. If the two countries specialize and trade with each other, who will import coffee? Explain.
d. Assume that the two countries trade and that the country importing coffee trades 2 ounces of soybeans for 1 ounce of coffee. Explain why both countries will benefit from this trade.
how and briefly explains what happens to the supply curve, if:
i. Productivity increases due to a change in technology
ii. Increase in the profitability of producing other goods other than this good
iii. Decrease in prices of input used in production
Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply schedules are as follows:
price($) Quantity Demand Quantity Supply
4 10,000 8000
8 8,000 8000
12 6,000 8000
16 4,000 8000
20 2,000 8000
a. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true?
The demand and supply functions of a product are given by the following
equations: Qd =1500 - 2P and Qs = -1300 + 2P
The government announces a program to support a price increase of $30 per kg of
this grain, which imposes a price floor of $730.
A. What are the equilibrium price and quantity before price support policy?
B. What quantity of grain is purchased by the consumers, supplied by the
producers and purchased by the government at the support price?
C. What is the change in consumer surplus, producer surplus and total surplus?
What is the cost of government to implement this price support policy?
D. Later on, the government changes the price support policy and provides
subsidy of $20 per kg sold. What is the price paid by buyers, price received by
sellers, change in consumer surplus, change in producer surplus and
government cost?
A firm has the following short run function Q = 100 K1/2 L,1/2r = Rs 50, W = Rs
40, P = Rs 2 and C = Rs 1000, calculate:
a. Marginal productivities of both inputs. ( MPL& MPK)
b. Sketch expansion path of output.
c. Explore the equilibrium level of capital and labor.
A firms production function is Q(L)=15l^2-0.1l^3. Find the number of workers required to maximise total product. for what number of workers is average product maximum
given a 10% fall in petroleum price and a 6.2 percent rise in daily wage paid to hired labour used for the production of rice in ghana. estimate the net effect of these changes on the production of rice, given that the elasticities production due petroleum price and daily wage are 1.15 and 1.25. respectively.