Microeconomics Answers

Explain and bring out the importance of the following concept:

1. Expansion Path
2. Isocline
3. Inferior Input
4. Economic Region Product
5. The Ridge Line

Coosider the production function characterizing garri plant as:

Q= 20L + 60k - L^2 - K^2

If total outlay for both capital, K =N50, and a Labour, L= N20, is N4,600. Find:

a. The optimal quantity of K* and L* to be employed.

b. Calculate the maximum possible output of garri that the plant can produce.

Suppose that your demand schedule for DVDs
is as follows:
Quantity Demanded Quantity Demanded
Price (income = $10,000) (income = $12,000)
$ 8 40 DVDs 50 DVDs
10 32 45
12 24 30
14 16 20
16 8 12
a. Use the midpoint method to calculate your
price elasticity of demand as the price of
DVDs increases from $8 to $10 if (i) your
income is $10,000 and (ii) your income is
$12,000.
b. Calculate your income elasticity of demand
as your income increases from $10,000 to
$12,000 if (i) the price is $12 and (ii) the price
is $16.

Assume that your are from any one of the following family. How can you utilize the limited resources to fulfill your needs
(a) family farm (b) petty shopper
(c) flower vendor

Assume that you are from any one the following family, how can you utilise the limited resources to fulfilling your needs

Critically evaluate and explain the following statement.
An excess of price over marginal cost is the market’s way of signaling the need for more production of a good.

Assume that you are from Anyone of the following family how can you utilise the limited resources to fulfill your need
A) family
B)petty shopper's
C) flower vendor

Assume that you are from Anyone of the following family how can you utilise the limited resources to fulfill your needs a) family
B) petty shopper's
C) flower vendor