Microeconomics Answers

A firm has the following demand function 𝑷 = 𝟔𝟎 − 𝟎. 𝟓𝑸 and its total cost are defined by 𝑻𝑪 = 𝟏𝟑 + 𝑸.

a. Find the maximum revenue.

b. Find the production to optimize the profit.

c. Verify if the marginal revenue and marginal cost are the same at the profit-maximizing production level. 

A firm has the following average cost 𝑨𝑪 = 𝟐𝟎𝟎 𝑸 + 𝟐𝑸 − 𝟑𝟔.

a. Find the stationary point and determine if it is a maximum or a minimum.

b. Find the marginal cost function.

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. 

1. Assess the following functions:

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.

1. 𝑓 ′(𝑥) = 𝑥 2 + 6𝑥 + 2

2. 𝑓 ′(𝑥) = 10𝑥 − 2𝑥 2 + 5 

what role, if any does advertising play in the automobile industry in the (i)1950s and (ii) presently? Explain

Are the firms in the automobile industry operating efficiently in (i) the 1950s and (ii) presently? Explain.

Q 2: If the price of Pak Suzuki company Swiftcar decreases from Rs 1,700,000 to Rs 1,000,000, keeping other factors constant, it would be termed as movement along the demand curve or shift in the demand curve? Elaborate it graphically?

Decrease in population rate, increase in the cost of fertiliser, which

used to grow vegetables, explain how the market for vegetables will be

affected by theses changes

Suppose the oil wells in Iran, Iraq and Kuwait are set alight, resulting in a dramatic and prolonged decline in the world output of oil. Use demand and supply curves to illustrate how this will affect the equilibrium price and quantity of oil.