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From the perspective of a single firm producing in a perfectly-competitive market, which of the following cannot be represented by the same curve as any of the other choices?
Marginal revenue
Average revenue
Price
Supply
Demand
This past year, Noah sold 50,000 ice cream cones at a price of $2.00 each. His only costs were from ingredients, for which he paid $25,000 in total. At the beginning of the year, Noah was offered a position at the pet store that would pay $90,000 for the year. Which of the following pairs represent Noah’s accounting and economic profits for working at the ice cream stand?
Matt adds the perfect amount of sugar to each batch of lemonade he sells. Should he produce the same quantity, an increase in the price of sugar would lead to an increase in all the following aspects of Matt’s production except
A change in regulations means that fewer factory workers can perform a certain task. New machinery is being offered to factories that can, in some instances, perform the task without workers. Which of the following pairs represents the new wage and new quantity of factory workers?
ingredients. Suppose that this economy’s production is as follows: 1 million loaves of bread
(sold at $2 each); 1.2 million pounds of flour (sold at $1 per pound); and 100,000 pounds
each of yeast, sugar, and salt (all sold at $1 per pound). The flour, yeast, sugar, and salt are
sold only to bakers, who use them exclusively for the purpose of making bread.
a. What is the value of output in this economy (i.e., nominal GDP)?
b. How much value is added to the flour, yeast, sugar, and salt when the bakers turn them
into bread?
what is an economy
- A and B consume only two goods, cider (C) and dumplings (D). A has an initial endowment of 10 bottles of C and 30 of D. Bob has an initial endowment of 50 bottles of cider and 50 dumplings. Alice’s utility function is uA(CA,DA) = 9ln(CA) + 10ln(DA), where CA and DA represent consumption of C and D, respectively. B’s utility function is uB(CB,DB) = CBXDB, where CB and DB denote B's consumption of C and D.
a) Find the competitive equilibrium, i.e. the price ratio, of this exchange economy and the resulting equilibrium allocation.
b) Find the expression of the contract curve for this economy and use your answer to check that the equilibrium allocation you found in (b) is indeed Pareto optimal.
A Professor of Economics from the Department of Economics Education of the Faculty of Social Sciences Education of the University of Education, Winneba, has estimated the demand and supply functions for students’ accommodation on campus to be respectively:
10P + 3Q = 60 and
P = Q – 0.5
Further, the professor claims that the average cost of Hostel operators is
AC = 20/Q+1+0.2Q
If the hostel operators decide to maximize sales revenue instead of profit, show how this will affect consumer’s surplus. What is the producer’s surplus under pure competition at the equilibrium point?
What scarcity ,how it occurs and how to identify scarcity ?
In a free market economy, producers respond to income to decide on what to produce.true or false
