Microeconomics Answers

The Cobb-Douglas function for a new product is given by:                                                            

N (L,K) = 1.19L^0.72K^0.18                  

Where    C* =Rs. 750,    w = Rs. 30,     r = Rs. 40

Determine the amount of labor and capital that the firm should use in order to maximize output. What is this level of output? Also interpret the value of Lagrange multiplier, λ.  

Each of the following is a condition necessary for the existence of monopolist competition except?

A)fairly large number(25-75) buyers and sellers of the product must exist. B) firms must be able to enter exit an industry with relatively ease.C)firms must offer identical products for sale.D)buyers must be well informed about Differentiated products.

In china and United States women labor force participation rose dramatically over the period of 1980, do you think this dramatic rise affects income of the country? How? Support your argument with facts and figures?

a price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic? explain

the data below shows a tabulation on the production of a hypothetical product

output (Q) total cost

0 25

1 32

2 38

3 42

4 48

5 58

6 67

7 78

8 98

use the data to answer the following questions:-

1. determine the total fixed cost
2. average variable cost schedule
3. marginal cost schedule
4. suppose this product is produced on a perfect market and the price of the commodity= 10. Determine the output Q that will maximize the profits. What is the maximum profits achieved by the firm? (show all the workings)

1. explain in details and using diagrams where appropriate the three main salient characteristics of each of the following market structures

a. perfect market

b. monopolistic competition market

c. monopolistic market

d. oligopolistic market

1. draw a diagram to show a firm in a monopolistic competition market making a short run loss but remaining in production. in your diagram, include the labels for the following: AR for average revenue; MR for marginal revenue; AC for average cost ; AVC for average variable cost and MC for marginal cost
2. for price discriminating monopolist, the inverse demand functions for two markets are given as follows

p1= 16-Q1

p2=9-Q2

where:-

p1 is the price in sub-market 1

p2 is the price in sub-market 2

Q1 is quantity demanded in sub-market 1

Q2 is quantity demanded in sub-market 2

Using the above information, calculate the profit maximizing outputs and prices in each of the sub-market when the industry's marginal cost equals 10 units

4.​Suppose the demand for inject printers is estimated to be 

   Q= 1000-2p+5Px-3Py+0.1Y

  P=80   Px= 20     Py= 150       Y= 1000

A.​Calculate price elasticity of demand? (2 pt) 

B.​Calculate cross price elasticity of x and y (Exy)? And state the nature of good 

C.​Calculate income elasticity of demand and what we can say about the goods