Microeconomics Answers

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 𝑀𝐶1 = 2 + 0.2𝑞1, 𝑀𝐶2 = 6 + 0.04𝑞2. It is a monopoly seller in a market where the demand schedule is 𝑝 = 66 − 0.1𝑞, 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

An individual has the utility function 𝑼 = 𝟒𝑿 𝟎.𝟓𝒀 𝟎.𝟓 and can buy good X at £2 a unit and good Y at £8 a unit. If their budget is £100. Find the combination of X and Y that they should purchase to maximize utility

Critically discuss the positive and negative impact of covid-19 on a developing country economy

q TC TFC TVC AVC ATC MC

0 RM50

1 70

2 80

3 90

4 110

5 140

6 175

7 220

8 280

9 360

10 450

1.1) Complete the table. (4M)

1.2) Draw a graph for each AVC, ATC and MC on one graph. (2M)

1.3) Suppose market price is RM20. How much will the firm produce in the short run? How much are total profits? (2M)

1.4) Suppose market price is RM60. How much will the firm produce in the short run? How much are total profits? (2M)

Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of RM60,000 annually. Last year you earned a total revenue of RM100,000. Rent and supplies last year were RM50,000.

2.1) Your annual economic costs are RM110,000 . (1M)

2.2) Your annual economic profit is RM-10,000. (1M)

2.3) Your annual accounting profit is RM50,000 (1M)

2.4) Based on the above information, describe the condition of your firm. (2M)

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Explain in your own words, the difference between Microeconomics and Macroeconomi cs. In your explanation, use relevent examples in reference to Papua new Guinea's Economy.

Food monopolies are destroying climate and agro-economy in the global South.

Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of RM60,000 annually. Last year you earned a total revenue of RM100,000. Rent and supplies last year were RM50,000. . Based on the above information, describe the condition of your firm. 

Name FOUR reasons why governments often set maximum prices