Microeconomics Answers

Microeconomics

Q.) Assume a consumer has $40 to spend and for both products the marginal utilities are shown in the following table: Quantity. MU A. MU B 1. 35 80 2. 20 40 3. 12 18 Assume that each product sells for $10 per unit. A.) How many units of each product will the consumer purchase? B.) Assume the price of product B rises to $20 per unit. How will this consumer allocate her budget now? C.) If the price of both products rise to $20 per unit , what will be the budget allocation?

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Question #256384

Microeconomics

Let Marginal utility of A (MUA)=2z-20-2x and Marginal utility of B (MUB)=2z=42-y. where z is marginal utility per Naira measured in utils, x is the amount spent on product A. and y is the amount spent on product B. Assume that the consumer has N10 to spend on A and B-that is, x+y= 10. i. How is the benefit of N10 maximized between A and B? ii. How much utility will the marginal Naira yield?

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Question #256224

Microeconomics

A monopoly that faces a demand curve given by q= 1-P and has a constant marginal cost is 0.1 In this situation the monopoly’s profit maximizing output level is

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Question #256175

Microeconomics

Historically, when has the Federal government been most likely to run budget deficits? What has been the recent experience?

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Question #256172

Microeconomics

4. The supply and demand for broccoli are described by the following equations: Supply: QS = 4P – 80 Demand: QD = 100 – 2P Q is in tonnes, and P is in dollars per bushel. /6 a. What is the equilibrium price and quantity? b. Calculate consumer surplus, producer surplus, and total surplus at the equilibrium. c. If a dictator who hated broccoli were to ban the vegetable, who would bear the larger burden—the buyers or sellers of broccoli?

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Question #256167

Microeconomics

a) What is the percentage change in the real price (1990 dollars) from 1980 to 2000? Compare this with your answer in (b). What do you notice? Explain.

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Question #256121

Microeconomics

I have given my answers for the following questions. Can you checkout whether the answers are correct or not?

1.How is Demand and Marginal Revenue in perfect competition different from monopoly?

My answer: In perfect competition, Demand and Marginal Revenue are equal to the price. In monopoly this is not the case because the monopolist wants to lower the price on all units in order to sell additional units. This makes it so the marginal revenue is less than the price and its curve has a more negative slope than the demand curve.

2.What does the demand curve for a perfectly competitive individual seller look like? Explain the logic behind it.

Answer: The demand curve for an individual firm is equal to the equilibrium price of the market means it is a horizontal line. In a perfectly competitive industry, the firm's demand curve is downward sloping. The perfectly competitive model does not assume any knowledge on the part of individual buyers and sellers about market demand and supply—they only have to know the price of the good they sell

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Question #256084

Microeconomics

If an increase in consumer income lead to no change in the demand of a product then the product is what?

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Question #256082

Microeconomics

An increase in the price of a product if demand is downward sloping will lead to

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Question #256056

Microeconomics

Assume that your from following family who can you utilize the limited resources to fullfill your needs family farn, petty shopper and flowers vendor

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