Microeconomics Answers

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?

A firm has the following revenue and cost functions.

TR = 120 Q – Q²

TC = 12 Q² +30 Q + 10

Determine the quantity level at which the firm maximizes its total profit. 

Suppose the majority of the residents of Birraland live close to the border and have access to beer at a lower price either in another province or in a neighboring country. What do you expect to occur? What does this imply about the ability of the local government of Birraland to independently set their beer pricing policy? Which jurisdiction is likely to be more problematic, other provinces or the neighboring country?

When Government imposes a price ceiling  

“If the business operates in the economy, there will be stage of peak, slow down and losses

also. That’s the part of business”. Which concept is explain in the statement?

A monopolist is faced with two distinct damned function given as Q1=48-025P1----(1), Q2=15-0.04P2----(2).If TC=60+15Q----(3) Question. (1) Demonstrate the profit levels for market with discrimination. (2) Demonstrate the profit levels for market without discrimination.(B) Discuss your observation.

A monopolist is faced with two distinct damned function given as Q1=48-025P1----(1), Q2=15-0.04P2----(2).If TC=60+15Q----(3) Question. (1) Demonstrate the profit levels for market with discrimination. (2) Demonstrate the profit levels for market without discrimination.(B) Discuss your observation.

A firm's unit capital and labor costs are $1 and $2 respectively. If the production function is given by Q = 4LK + L^2. Find the maximum output and the level of K and L at which it is achieved when the total in put cost is fixed at $105. Verify that the ratio of marginal product to price is the same for both inputs at the optimum