Microeconomics Answers

A consumer buys 80 units of a good at price of ₹5 per unit. Suppose price elasticity of demand is (-) 2 . At what price will he buy 64 units?

Given Q=100K^0.5L^0.5 ,w= 30, r=40

i) Find the quantity of labour and capital that the firm should use in order to minimize the cost of

producing 1444 units of output

ii) What is this minimum cost?

explain what happens in short run and long run under perfectly competitive market structure

Discuss some ways in which COVID-19 Unemployment Assistance from the Fijian Government help the formal and informal employees during this pandemic.

1. Explain why the concept of elasticity of demand should be of interest to those in business who have to make choices about the price at which to sell their products. 2. Explain why it is the marginal utility, rather than total utility, of a product that affects its elasticity. 3. Mr. Mars allocates his budget of $ 24 per week among three goods. Use the following table of marginal utilities for good A, good B, and good C to answer the questions below; Quantity in Units MUA MUB MUC 1 50 75 25 2 40 60 20 3 30 40 15 4 4 20 30 10 5 15 20 7.5 4. If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Mr. Mars purchase in equilibrium? 5. If the price of A rises to $4, while other prices and Mr. Mars budget remains constant, how much of each does he purchase in equilibrium? 

The total production costs of a manufacturing firm at various levels of output are given below: Output (Units) Total Cost ($) (0) 1000 (20) 1200 (40) 1300 (60) 1380 Calculate the firm’s average cost (AVC), average fixed costs (AFC) and marginal cost