Microeconomics Answers

Explain how will the increase in income affect the budget line for meat if you were to spend your income in these two goods meat and rice? Assume that you only spend the whole budget in buying meat

Can u post answer for equation P=35100-27Q

market consists of three people A, B and C whose individual demand equations are as follows:

A: P = 30 – 1.00QA

B: P = 30 – 1.33QB

C: P = 30 – 0.80QC

(i) What is the market demand equation?

(ii) If one has 60 units, what price should he charge to sell the entire units? Determine the quantity demanded from each market

(iii) If the industry supply equation is QS = 70 +2P, determine the equilibrium price and quantity.

1.    A homogeneous products duopoly (from firm 1 and firm 2) faces an inverse market demand function given by P = 300 - 3Q, where Q = q₁ +q₂. The cost functions for Firm 1 and Firm 2 are given as C1(q1) =100q1 and C2(q2) = 100q2.

a)    If the firms compete under Cournot assumptions; 

                i.         What is Firm 1’s profit-maximizing quantity, given that Firm 2 produces q₂ output per year?

              ii.         What is Firm 2’s profit-maximizing quantity, given that Firm 1 produces q₁ output per year?

            iii.         Sketch the equation of each firm’s reaction curve (Firm 1 and Firm 2)

             iv.         Find the Cournot equilibrium quantity per firm and price in this market.

b)    If the firms collude and agree to share total profits equally in the industry, what will be the price?

c)    Now suppose that firm 1 is a Stackelberg leader while firm 2 is a follower. Calculate the price in the industry and output of the leader.

1.    The opening statement on the Web site of the Organization of Petroleum Exporting Countries (OPEC) says, “... OPEC’s eleven members are all developing countries whose economies are heavily reliant on oil export revenues. They therefore seek stable oil prices that are fair and reasonable for both producers and consumers of oil.” To achieve this goal, OPEC attempts to coordinate and unify petroleum policies by raising or lowering their collective oil production. However, increased production by Russia, Oman, Mexico, Norway, and other non-OPEC countries has caused the price of crude oil to fall dramatically in recent years. To achieve its goal of stable and fair oil prices, what must OPEC do to maintain the price of oil at its desired level? Do you think this will be easy for OPEC to do? Explain.

You are the human resources manager for a famous retailer, and you are trying

to convince the president of the company to change the structure of employee

compensation. Currently, the company’s retail sales staff is paid a flat hourly

wage of $18 per hour for each eight-hour shift worked. You propose a new

pay structure whereby each salesperson in a store would be compensated $8

per hour, plus five-tenths of 1 percent of that store’s daily profits. Assume

that, when run efficiently, each store’s maximum daily profits are $40,000.

Outline the arguments that support your proposed plan.

Sonja Cc is a small firm that make outfits for customer tailored for their functions, in My 2021 she was ordered for a baby shower (BS)

The details for Job BS was as follows:

Direct materials: 12 units at N$124

Direct labour: 20 hours for department A at N$25 per hour

10 hours for department B at N$30 per hour

12 hours for department C at N$27.50 per hour

The firm allocates manufacturing overheads budgeted at N$2500 in department A, N$2000 in department B and N$3000 in department C.

The firm expects a profit of 55% on total cost BS

Required:

1.Calculate the cost of a baby shower BS

2.Calculate the selling price of a baby shower BS

3.If the number of outfits are the same for each type of function, which function should Sonja choose to produce and why.

Differentiate between product market and labour market (use diagrams that explain the interactions in the markets)

Due to substantial increases in prices in Country A, the real income level of the population in Country A decreases. Show on a diagram how the decrease in the income level in Country A will affect the demand for meat, which is a normal good. Also indicate how the equilibrium price and equilibrium quantity of meat will change in Country A. The direction of any changes should be clearly indicated using arrows. Note that your diagrams should be properly annotated and that marks will be deducted for any missing labels on your diagram.

The population in country C decreases, due to a lower birth rate. At the same time, there is an increase in the cost of fertilizer, which is used to grow vegetables. Explain how the market for vegetables will be affected by these changes. Clearly indicate how the equilibrium price and equilibrium quantity will be affected by these changes. Make use of a combination of diagrams and verbal explanation to explain your answer. Note that your diagrams should be properly annotated and that marks will be deducted for any missing labels on your diagram