Microeconomics Answers

State what market structure currently exits in the US automobile market.

Explain if excess profit will exist in the long run.

Qd=100-5p and Qs= -20+3p if the price is R10

Suppose that the price elasticity of demand for maple syrup has been estimated at -4. If quantity

demanded increased by 10 percent, price must have changed by

1. Assess the following functions:

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.

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. 

There is no difference between the marginal rate of substitution and the marginal rate of transformation.

Do you agree with this statement? Elaborate on your answer.

Use appropriate examples to discuss three critical assumptions about the properties of consumers’

preferences.

Use well labeled diagrams to discuss the relationship between the price elasticity of demand and total

revenue.

Suppose that the price elasticity of demand for maple syrup has been estimated at -4. If quantity

demanded increased by 10 percent, price must have changed by

plot the supply and demand curve Qd= 3000-10P Qs=-10000 + 10P