Search
The wage rate of labor is Rs. 6 and price of capital is Rs. 2. The marginal product of labor is 16 while marginal product of capital is 4. Can a firm be operating at equilibrium?
Q9) Complete the table and show your calculation
No. of variable inputs Total product Marginal product Average product of
of variable input variable input
3 18 30
4 20
5 130
6 5
7 19.5
Does the production function stated in the table given above exhibit diminishing returns? If so, at what no. of units of variable inputs do diminishing marginal return begin?
A monopolist firm has the following total cost function and demand function and show your calculation.
Quantity demand price total cost
5 8 20
6 7 22
7 6 25
8 5 29
9 4 34
10 3 40
Explain what price will be charged and what output will be produced.
You are the manager of a firm that receive revenue of Rs.30,000 per year from product X
and Rs. 70,000 per year from product Y. The own price elasticity of demand for product X
is -2.5 and the cross price elasticity of demand between product Y and X is 1.1. How much
will you firm’s total revenue (revenues from both products) change if you increase the price
of good X by 1 present?
The relationship between the concept of elasticity & total revenue.
May I have detailed explanation.
Give three reasons why a demand curve slopes downwards?
May i have a detailed answer.
Explain graphically how indifference curve analysis can be used to derive a demand curve?
I. Explain the Law of diminishing return and why is it applicable especially in agriculture sector?
P = 101 - 10Qi
, where P is price in dollars per cup and Qi is the number of cups demanded
per week by the i
th consumer. Find the market demand curve using algebra. Draw an
individual demand curve and the market demand curve. What is the quantity demanded by
each consumer and in the market as a whole when lemon is priced at P = $1/cup
) In a certain market, the demand for peach was given as QD = 400 -3P, the
first day of marketing in 2020, in August 2020, the demand for peach is now
given as QD = 200 -3P. From the statement above tell in one sentence the
change in demand; what did you consider as the indicator? Support your answers by
sketching the equations above on the same graph sheet.
b) In a certain market for Sobolo when the price of the drink was GHC 3 per
bottle, the quantity demanded was 12 bottles. On another day, when the price
per bottle was GHC 5, quantity demanded was 6. Use the information to write
down and equation for demand. Now, what will be quantity demanded if price
per bottle was 6? If we restrict price to the same demand curve, what will
happen if price is less than GHC 2?
c) Complementary in supply are goods for which producing more of one
requires producing more of the other. Using the definition, write down any 5
real life examples of complements in supply
Given the demand function P = 20 – 5Q, find the price elasticity of demand when price of the commodity is 5 Birr per unit. Mention if the demand is price elastic or inelastic at this point
