Search & Filtering
A recent study found that the demand and
supply schedules for Frisbees are as follows:
Price per Quantity Quantity
Frisbee Demanded Supplied
$11 1 million Frisbees 15 million Frisbees
10 2 12
9 4 9
8 6 6
7 8 3
6 10 1
a. What are the equilibrium price and quantity
of Frisbees?
b. Frisbee manufacturers persuade the government
that Frisbee production improves
scientists’ understanding of aerodynamics
and thus is important for national security. A
concerned Congress votes to impose a price
floor $2 above the equilibrium price. What is
the new market price? How many Frisbees
are sold?
c. Irate college students march on Washington
and demand a reduction in the price of
Frisbees. An even more concerned Congress
votes to repeal the price floor and impose a
price ceiling $1 below the former price floor.
What is the new market price? How many
Frisbees are sold?
The government has decided that the freemarket
price of cheese is too low.
a. Suppose the government imposes a binding
price floor in the cheese market. Draw
a supply-and-demand diagram to show the
effect of this policy on the price of cheese and
the quantity of cheese sold. Is there a shortage
or surplus of cheese?
b. Farmers complain that the price floor has
reduced their total revenue. Is this possible?
Explain.
c. In response to farmers’ complaints, the government
agrees to purchase all the surplus
cheese at the price floor. Compared to the
basic price floor, who benefits from this new
policy? Who loses
suppose a consumer consuming two comodities X and Y has the following utility function U=X^0.4Y^0.6. if the price of good X and Y are 2 and 3 respectively and the income constraint is birr 50. find the quantities of X anf Y which maximize utility
market in Malaysia. Prepare a well-organized report on the business organization.
Generally, your reports should have the following basic contents:
⚫ Introduction
◼ Background of monopoly market
◼ Background of the chosen organization/business
◼ Main market characteristics of the organization as monopolist
◼ Vision and mission of the selected organization/business
◼ Corporate social responsibility of the selected organization/business
◼ Products/services portfolio of selected organization/business
◼ Subsidiaries under the selected organization/business
⚫ Conclusion
golden rule different from the steady state?
Rick always likes to consume a cup of tea with a serving of noodles at any given time of the day. He earns a monthly allowance of 150. A cup of tea cost him Rs5 and serving of noodles cost Rs 10. Given this what will be Rick’s optimal consumption bundle?
How much economic profit a firm can earn in comitative environment?
In this statement correct that laizze faire purely capitalist economy will consistently give result in economically effective distribution of resources? if yes explain why?
Assume the following demand and cost function of a monopolistically
competitive firm:
P = 100 − 0.2Q
TC = 30Q − 5Q
2 + Q3
i. Determine the long run equilibrium price and output of a
monopolistically competitive firm.
ii. How is monopoly solution (price and output) different from that of
monopolistic competitive solution (price and output)?
iii. Find out the perfect competitive solution (price and output) and
compare the results with monopoly and monopolistically
competitive solution (price and output)
iv. Why do results vary from perfect competition to monopolistic
competition to monopoly?
#339914 on Dec 2023