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Zodwa P=50-2Q Lihle P=60-3Q
Deduce the market quantity identity for ice cream
The production function for Ghana Rice is given by Q = 100 KL , where Q is the number of bags produced per hour K is the units of capital employed and
L is the number of workers hired each hour.
a. Calculate the Q = 1000 isoquant for this production function and illustrate it on
a diagram.
b. If K = 10 , how many workers are required to produce Q = 1000 ? What is
average productivity of Ghana Rice workers?
c. Suppose technical progress the production function to Q = 200 KL , answer
parts (a) and (b) for this new situation.
2. Assume the government has two policy options, a cash grant of GH¢200 and providing food stamps worth GH¢200.
(a) Draw the budget constraint faced by the consumer in each of these two situations.
(b) Now, draw a set of indifference curves that corresponds to an individual who would be indifferent between these two policies.
(c) Next, draw a set of indifference curves corresponding to an individual who would prefer to have a cash grant rather than food stamps.
Briefly explain macroeconomic problem and macroeconomic polic instruments
What are the supply schedule and the supply curve and how are they related ? Why does the
supply curve slopes upward ?
An analyst believes that economic conditions during the next year will either be strong, normal, or weak, and she thinks that the Corrigan Company's returns will have the following probability distribution.
Conditions Probability (%) Return (%)
Strong 30 30
Normal 40 15
Weak 30 -10
What is Corrigan’s standard deviation of returns?
Explain how will the increase in income affect the budget line for meat if you were to spend your income in these two goods meat and rice? Assume that you only spend the whole budget in buying meat
Can u post answer for equation P=35100-27Q
market consists of three people A, B and C whose individual demand equations are as follows:
A: P = 30 – 1.00QA
B: P = 30 – 1.33QB
C: P = 30 – 0.80QC
(i) What is the market demand equation?
(ii) If one has 60 units, what price should he charge to sell the entire units? Determine the quantity demanded from each market
(iii) If the industry supply equation is QS = 70 +2P, determine the equilibrium price and quantity.
1. A homogeneous products duopoly (from firm 1 and firm 2) faces an inverse market demand function given by P = 300 - 3Q, where Q = q1 +q2. The cost functions for Firm 1 and Firm 2 are given as C1(q1) =100q1 and C2(q2) = 100q2.
a) If the firms compete under Cournot assumptions;
i. What is Firm 1’s profit-maximizing quantity, given that Firm 2 produces q2 output per year?
ii. What is Firm 2’s profit-maximizing quantity, given that Firm 1 produces q1 output per year?
iii. Sketch the equation of each firm’s reaction curve (Firm 1 and Firm 2)
iv. Find the Cournot equilibrium quantity per firm and price in this market.
b) If the firms collude and agree to share total profits equally in the industry, what will be the price?
c) Now suppose that firm 1 is a Stackelberg leader while firm 2 is a follower. Calculate the price in the industry and output of the leader.
1. The opening statement on the Web site of the Organization of Petroleum Exporting Countries (OPEC) says, “... OPEC’s eleven members are all developing countries whose economies are heavily reliant on oil export revenues. They therefore seek stable oil prices that are fair and reasonable for both producers and consumers of oil.” To achieve this goal, OPEC attempts to coordinate and unify petroleum policies by raising or lowering their collective oil production. However, increased production by Russia, Oman, Mexico, Norway, and other non-OPEC countries has caused the price of crude oil to fall dramatically in recent years. To achieve its goal of stable and fair oil prices, what must OPEC do to maintain the price of oil at its desired level? Do you think this will be easy for OPEC to do? Explain.
