Microeconomics Answers

Explain why any imperfect market structure is one of the sources of market failures. Give an example by showing graph/calculation and descriptions.

The market for fast food chicken restaurants, like KFC, Chicken Licken and Nandos, are said to be within the category of monopolistic competition. Examine this market for characteristics and behaviours that link them to this type of market structure.

What is the effect on the market when suppliers under invest in their businesses

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

The market mechanism is the tendency for prices to change until the quantity demanded equals quantity supplied. Using illustrations provide an explanation on how the market adjusts to the market equilibrium when the price in the market is not originally set at the market equilibrium price.

difference perfect competition and monopoly market structures in terms nature of product, entry ,firms control over price, collusion

a.   You are provided with the following demand and cost information for a monopolist.

P=60-0.25 Q and TC=Q²+40Q+50 Where P is price, Q is quantity of the product and TC is total cost. Determine the profit maximizing level of output and prices

1.    Assume the following for price discriminating monopolist aimed at maximizing profit. Total demand for the product of the monopolist is Q = 50-5P (P = 100-2Q) (10 Marks)

·      Demand in Market one is Q1= 32-0.4P1(P1= 80-2.5Q1)

·      Demand in Market two is Q2= 18-0.1P2(P2= 180-10Q2)

·      Cost function is C = 50+40Q (where Q = Q1+ Q2)

a.     Find equilibrium quantities (Q1and Q2),

b.    Find equilibrium prices (P1and P2),

c.     Calculate profit (π),

d.    Calculate and Interpret elasticities (ε1 and ε2)

What significance of price elasticity pf demand to a producer

Identify the value of the fixed costs