Microeconomics Answers

you are told that the price of beef fell by 50%, the quantity of demand rose by 100%. the demand for beef would thus be

 Assume that the farmer wants to produce a fixed amount of fodder at a feasible level y2 0 . He decides to allocate L2 amount of land for the cultivation of this crop. If the land constraint is exactly met, show how would you derive the cost function for food C1(.), and that of fodder C2(.) ?

"What is the point of entering a perfectly competitive industry if it is simply to earn zero profits anyway?" Discuss this statement with reference to the long and short run, as well as to heterogeneity across firms. 

Suppose that type I sellers charged the price of $60 for the portable TV, type II sellers charged $80, type III sellers charged $100, type IV sellers charged $120, and type V sellers charged $140. 

Determine 

the expected lowest price for the TV from one, two, three, four, and five searches and

the marginal benefit from each additional search.

Why are price floors said to be inefficient? Can the government restore efficiency by imposing a production quota along with the price floor? Who benefits and who loses from such a program? 

a)     Why are price floors said to be inefficient? Can the government restore efficiency by imposing a production quota along with the price floor? Who benefits and who loses from such a program? ( Max.500 words)

Why is it the case in a long-run monopolistically competitive equilibrium that the firm’s demand curve is tangent to its average cost curve? Why could it not be a long-run equilibrium if the demand curve “cut through” the average cost curve? (Max. 1000 words)

The greater the part of a consumer's bugdet is spent on a specific good, the...... Elastic the demand will be

What is opportunity cost?

if the demand curve for bikes shift leftward and the supply curve for bikes shift rightward, the equilibrium will?