Search & Filtering
Bayla works in a flower shop,where she produces q=8 floral arrangments per hour,h.She is paid 28 shekels an hour for the first nine hours she works and 35 shekels an hour for each additional hour.What is the firm's cost function,C(q)?What are its average cost (AC),average variable cost(AVC),and marginal cost(MC) functions?Draw the AC, AVC, and MC curves.
A firms short run cost function is C(q)=200q-6q ²+0.3q³+400. Determine the fixed cost,F;the average variable cost,AVC;the average variable cost,AC;the marginal cost,MC;and the average fixed-cost,AFC.
If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or surpluses?
Considering the price support and quota, calculate:
the consumer surplus
the producer surplus
deadweight loss
Define the equilibrium of a market. Describe the market forces that move a market towards its equilibrium.
Q1. In Arthnagar, the demand function of wheat is estimated as: QD = 100-5P The supply function of wheat is estimated to be: Qs = -32+6P Where QD and Qs are respectively, the quantities demanded and supplied and P is the prevailing market price (expressed in Rs per Kg). Assuming that the wheat market is competitive, answer the following questions: 1. What is the quantity of wheat bought when it is offered free of charge? What is the maximum price which consumers of Arthnagar are willing to pay for wheat?What is the minimum price at which producers are induced to supply wheat? 4. What is the equilibrium market outcome? Determine the consumers’ and producers’ surplus at the equilibrium market outcome. A tax of Rs 11 per Kg is levied on wheat by the Arthnagar Panchayat. How would the same alter the equilibrium outcome? Now assume that the wheat is supplied by a monopolist who can indulge in perfect price discrimination. Compare the current equilibrium outcome to that of the competitive market
John is 19 years and is an actor in a soap opera, “One Life to Burn.” He earns One Million pesos a year. Josh is also 19 years and works in local fast food. He earns 380 pesos a day. Which of the two persons is more likely to attend college and for what reason? economic explanation.
HARAREÃ ¢ Ã ¢ The Zimbabwean police warned last Monday unscrupulous traders selling commodities at above the government stipulated prices that they risked being arrested if caught doing the unlawful act.
Police spokesperson Inspector, Cecilia Churu, said that police would not hesitate to arrest any retailer caught flouting the gazetted price.
The warning comes in the wake of unjustified price increases of Mealie Meal in the past two weeks by millers without the approval of the government.Ã ¢ Zambia Daily Mail, 24th July, 2003.
You are required to:
Explain, with the aid of a diagram, the effect of this form of government intervention on the price mechanism.
The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete development?
