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Captain America as a captain in the US Army during World War II earned around $4,800 annually in 1944. While in 2021, as he is still a captain of the US Army, he earns $52,596 per year. Suppose the price index was 17.6 in 1944. The price index in 2020 is 1470.7% of that in 1944.
a. What is the price index in 2020?
b. How much does the Captain America's pay in 1944 worth in terms of 2021's price?
Q7) Answer the following questions making the comparisons between the perfectly competitive and monopoly
firms.
a) Differentiate both with respect to market, nature, resource mobility price information and demand curves.
b) Looking at the short run and long run conditions is it possible for a perfectly competitive firm to survive in the
long run with zero profits? Explain your answer with reason (s).
c) Looking at the short run and long run conditions is it possible for a monopoly firm to survive in the short run
with losses? Explain your answer with reason (s).
‘An increase in output would motivate a cost-minimizing firm to employ more of all
variable inputs.’ Comment.
critically discuss the effects of social grants on incomes and welfare
Suppose that there are 250 identical individual consumers in the market for commodity X, each with a demand function given by dx = 6-Px and 50 identical producers of commodity X, each with a supply function given by sx =5Px. (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
Mr. Karim is planning to pursue MBA studies. Initial inquiry shows that he will have to pay RM 24,000 as tuition fee, buy books for RM 1,000, and pay for transport RM 1,000. The MBA study programme will extend over 18 months. Mr Karim is working now with a salary of RM 3,000 per month. Being a full time student, he will have to forego the income from his present job for the period of study.
Work out: (a) Financial cost, and (b) the Economic Cost of doing MBA
(Hint: Identify implicit costs and explicit costs)
If there is Savings in this Circular model, then what would eventually happen to income and revenue?
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
When someone’s kidneys fail, the person needs to have medical treatment with a dialysis machine (unless or until they receive a kidney transplant) or they will die. Sketch a supply and demand diagram, paying attention to the appropriate elasticities, to illustrate that the supply of such dialysis machines will primarily determine the price.
