Microeconomics Answers

If the demand curve of a profit maximizing monopolist is given as Q = 40 − 0.2P and cost function as C = 30 + 30Q, find equilibrium output level, monopolist price, and profit

1. If the inverse demand curve of profit maximizing monopolist is given as P =1200 − 2Q , and cost function as

 C = Q3 − 61.25Q²+1528.5Q + 2000, find equilibrium output level, monopolist price, and profit.

1.     Suppose that there are 250 identical individual consumers in the market for commodity X, each with a demand function given by d_x = 6-P_x and 50 identical producers of commodity X, each with a supply function given by s_x =5P_x. (8 Marks)

a)    Derive the market demand function and the market supply function for commodity X.

b)    Compute the market equilibrium price and equilibrium quantity mathematically.

c)    Tabulate the market demand schedule and the market supply schedule for commodity X.

d)    show whether surplus or shortage occurs at

i)               P = 2

ii)             P = 5

A profit maximizing firm in perfectly competitive market structure has average revenue of 10, average variable cost of 10-2q+q^2 and total fixed cost of 200

À)find profit maximizing output

B) Calculate the maximum profit

C) what price is needed for the firm to stay in the market

Why was agriculturalsector declared as a critical industry and exempt from the hardest lockdown regulations

Pick a company with which you are familiar (preferably the one you wrote about for your first

paper), either by working for it or by a close family member working for it. Write a paper about it

with the following sections:

1. Introduction

2. Product -

3. Process -

4. Location -

5. Layout -

6. Human Resources -

e. Give an overview of compensation and incentives at your company. This does not

mean to give numbers which are confidential. It does mean to describe whether

employees are compensated by the hour, piecework, commission, knowledge, or

salary and whether there is an incentive plan such as profit sharing or gain sharing.

Does the compensation/incentive plan motivate the employees? Critique the plan.

f. What does your company do to fit the job to the worker (ergonomics)?

g. Describe your company’s safety program.

h. Discuss working conditions at your company.

i. Does your company use visual signals/aids for communication as described in the

visual workplace section? If so, describe.

Rate at which output increases when there is an increase in the input (labour) is called

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

equilibrium is achieved in an economy

A firm operates two plants whose marginal cost schedules are , . It is a monopoly seller in a market where the demand schedule is , where q is aggregate output and all costs and prices are measured in £. How much should the firm produce in each plant, and at what price should total output be sold, if it wishes to maximize profits

Halo has an endowment of 30 units of labor (L) on an island, where the production functions are x=0.5Lx and y=0.25Ly. Halo must consume one unit of x with each unit of y. How much of (x,y) should Halo produce in this economy?

a) (5,5)

b) (7.5, 7.5)

c) (8,8)

d) (10.5, 10.5)