Microeconomics Answers

In a competitive market, firms sell output at a price of ₵ 20. Marginal productivity per hour of the workers is described by the equation MPL = 40 - L. What is the firm’s demand curve for Labour? If the firm can hire Labour from a competitive Labour market at a wage of ₵5 per hour, how many workers should the firm hire?

Assume you are from any one the following family how can you utilize the limited resources to fulfill your needs b) petty shoppers

how to calculate the price elasticity of demand if the price is at 0

An agent consumes quantity (x₁,x₂) of goods 1 and 2. Here is his utility function: 𝑈(𝑥1, 𝑥2) = max{𝑥1, 𝑥2}.

(a) Draw a typical indifference curve for the agent.

(b) The agent has income m=6, prices are (p₁, p₂) = (1, 3). Derive Marshallian demand (x*₁, x*₂).

An agent consumes quantity (x₁,x₂) of goods 1 and 2. Here is his utility function: 𝑈(𝑥1, 𝑥2) = min {𝑥1, 2 ∗ 𝑥2}.

(a) Draw a typical indifference curve for the agent.

(b) The agent has income m=10, prices are (p₁, p₂) = (1, 3). Derive Marshallian demand (x*₁, x*₂).

I would like to ask about the price and quantity demanded question here.

Suppose that the current equilibrium for S-League football matches is $100 and 10,000 tickets. If demand for S-League tickets are price elastic and the price of each ticket increases to $150,

(i) What is the minimum fall in quantity demanded that the organiser can expect?

(ii) Explain the effect on total revenue.

Thank you so much for your help.

Help me understand the Dialogue below:

Interpret and evaluate this dialogue with the aid of clearly labelled diagrams:

John: “How can competitive profits be zero in the long run? Who will work for nothing?”

Mary: “It is only excess profits that are wiped out by competition. Managers get paid for their work; owners get a normal return on capital in competitive long-run equilibrium—no more, no less.

Instructions use Harvard referencing Style

How does the rise of the Internet affect this situation of prices cut of medicine

Compare and contrast the situation of PC World with that of a supermarket chain, as far as product mix profit maximization is concerned.

. Suppose a soap-manufacturing production process is described by the following 

equation:

Y = a + b log K + с log L

Where, 

Y= Output (number of soaps produced)

K=Capital 

L=Labor

a, b and c are constants

Suppose 0<a<1, 0< b<1 and 0<c<1

a. Find the Marginal Product of Labor (MPL) and Marginal Product of Capital 

(MPK) in the production of soap