Microeconomics Answers

Questions answered by Experts: 10 772

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Search

1.    A U.S. firm opens a factory that produces camping equipment in Albania, by itself

a.     this increases U.S. net foreign investment and decreases Albanian net foreign investment.

b.    this decreases U.S. net foreign investment and increases Albanian net foreign investment.

c.     increases only U.S. net foreign investment.

d.    increases only Albanian net foreign investment.



1.    A Swiss firm opens a watch factory in the United States.

a.     This is Swiss foreign direct investment and by itself increases Swiss net foreign investment.

b.    This is Swiss foreign direct investment and by itself decreases Swiss net foreign investment.

c.     This is Swiss foreign portfolio investment and by itself increases Swiss net foreign investment.

d.    This is Swiss foreign portfolio investment and by itself decreases Swiss net foreign investment.



Suppose a college decide to raise the tuition fee from Rs.3, 000 per month to Rs.4, 000 of MBA level students. The number of students getting admission is 500. The price elasticity of demand for the students is 0.2.

Find out the number of students getting admission after increase in tuition fee.

Find out the total revenue before and after the increase in tuition fee.

Explain whether the increase in tuition fee is wise decision or not on the basis of total revenue.


A firm faces the following linear inverse demand for its product P = 60 - 2Q.
a) Find the firm's total revenue function TR (Q). (4 marks)
b) Find the expression for the firm's marginal revenue. (2 marks)
c) Assuming that the marginal cost of production is given by MC=8. What will be the equilibrium output and price?
Your community newspaper, The Xpress, has fixed production costs of K70 per edition, and marginal printing and distribution costs of 40n/copy. The Xpress sells for 50n/copy
a) Write down the associated cost, revenue, and profit functions. (6 marks)
b) What profit (or loss) results from the sale of 500 copies of The Xpress? (2 marks)
c) How many copies should be sold in order to break even?
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? Write down any five factors
responsible for the change in demand. Support your answers by sketching the
equations above on the same graph.
You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation:
*If both of you work hard, you both get an A, which gives each of you 40 units of happiness.
*If only one of you works hard, you both get a B, which gives each of you 30 units of happiness.
*If neither of you works hard, you both get a D, which gives each of you 10 units of happiness.
*Working hard costs 25 units of happiness.
a. Fill in the payoffs in the following decision box:



b. What is the likely outcome? Explain your answer.

d. Another classmate cares more about good grades: He gets 50 units of happiness for a B, and 80 units of happiness for an A. If this classmate were your partner (but your preferences were unchanged), how would your answers to parts (a) and (b) change? Which of the two classmates would you prefer as a partner? Would he also want you as a partner?

a.    Construct an edge worth box diagram and show how production, efficiency and

equilibrium is achieved in an economy.                                                       (10Marks)



Your community newspaper, The Xpress, has fixed production costs of K70 per edition, and marginal printing and distribution costs of 40n/copy. The Xpress sells for 50n/copy.

a)   Write down the associated cost, revenue, and profit functions.                     

b)   What profit (or loss) results from the sale of 500 copies of The Xpress?         

c)    How many copies should be sold in order to break even?                      



Suppose the price of coffee in Brazil is 29 per unit . Will India export or import
LATEST TUTORIALS
APPROVED BY CLIENTS