Microeconomics Answers

c) Determine the equilibrium price and quantity of the above market when j=100.

Qd = Qs given the following equations: 400 - 2P + 4j = - 100 + 3P and 400+400+100 = 3P+2P calculate price and quantity.

a) Analyze the effect of a price ceiling in the market for wheat on equilibrium price and quantity. Will

and producer surpluses.

competitive market.

consumers / producers / both benefit because of this price ceiling? Explain using changes in consumer

technology affect market demand and/or supply, equilibrium price and equilibrium quantity in a

(b) How will a simultaneous increase in the price of substitute good and an improvement in production

Which one of the following is incorrect under perfect competition

A.Marginal revenue is always equal to the price of the product.

B. Average revenue is always equal to marginal revenue.

C.Average revenue is always equal to the price of the product.

D.Marginal revenue is always equal to marginal cost

Suppose the short run market price a competitive firm faces is birr 9 and the total costof the firm is TC=200+Q+0.02Q2.

a) calculate the short run equilibrium output and profit of the firm

B)drive the MC, ATC,and AVC and calculate the values at the short run equilibrium output

C) calculate the producers surplus at the equilibrium output

D) find the output level that will make the profit of the firm zero

If a firm producing in long run using capital and labour inputs,how the least cost combination of the input will be determined? show it mathematically and graphically

Describe how firms determine variable input and stage of production in matimatically and graphically

Do monopoly firms always make profit and when should a monopoly firm shut down ?