Microeconomics Answers

A firm faces the following linear inverse demand for its product P = 60 - 2Q. a)Find the firm's total revenue function TR (Q).b)Find the expression for the firm's marginal revenue.c)Assumingthat 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. Write down the associated cost, revenue, and profit functions.What profit (or loss) results from the sale of 500 copies of The Xpress?how many copies should be sold in order to break even

The market is unable to provide national defence efficiently.” Discuss this statement critically.

Make a use of calculus to prove that the price elasticity of demand is a constant ε everywhere along the demand curve whose function is Q = Apε , where A is a positive constant and p is the market price

1.     A monopolist has demand and cost curves given by:

QD = 10,000 - 20P

TC = 1,000 + 10Q + .05Q2

i.            Find the monopolist's profit-maximizing quantity and price.

ii.            Find the monopolist's profit.

a)   If the advent of new and better technology in a perfectly competitive market leads to a large reduction in costs of production, how will this affect the market?

Explain the term price elasticity of demand? How is it measured? What factors influence market demand for products? If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the optimal sale price?