Microeconomics Answers

The following day shows the relationship between the price and quantity demanded at four different prices for a product:Using the midpoints formula what is the price elasticity of demand between a) $11 and $9 ; (b)$9 and $7 ; (c) $7 and $5

What according to Keynes are the components of aggregate demand? Describe how equilibrium output is determined in the simple Keynesian model

Suppose that the firm operates in a perfectly competitive market. the market price of its product is $2.the firm estimates its cost of production with the following cost production with the following cost function: C=100-6Q+2Q²

Based on this information, answer the following question.

A.what is the total fixed cost for 4 unit of output?

B.what is MC when the firm produces 4 unit of output?

C. What is the value of AFC at 4 units of output?

D.what is total variable cost for 4 unit of output?

E.What level of output should the firm produce to maximize its output?

Assume that the total cost of a competitive firm is given by,TC=6Q2-16Q+12, and the total revenue of the firm is given by, TR=2Q²

Then find

A.The firms profit maximization level of output.

B.Profit

C.does the firm generate profit or incur loss at 5 unit of output?

A. If a firm produce and sells q units of a particular product in the market. The total cost of producing q units is given by the function C(q) = 5q + 350 while the price firm received in the market is given by the function D(q) = 50 - q . Find

a. The profit function

b. The break-even value of q

c. The value of q that result in loss

Under perfect competition the rising firms marginal cost curve above minimum of avarage variable cost is what?

Defi ne the concept of a supply schedule or curve. Show that an increase in supply means a rightward and downward shift of the supply curve. Contrast this with the rightward and upward shift of the demand curve implied by an increase in demand.

Define Positive and Normative Economics and classify each of the following statements. (5)

a) Society faced a short-run tradeoff between inflation and unemployment

b) A reduction in the rate of money growth will reduce the rate of inflation

c) The State bank of Pakistan should reduce the rate of printing new currency notes

d) Society ought to require welfare recipients to look for jobs. e) lower tax rates encourage more work and more saving

f) Firms are showing a positive response to increase in demand of product

g) Decision of a worker to work less due to lower wages

h) Government legislation is targeting firms charging too high prices

What decision that the Honda and Proton made using by company and how to reduce the cost of production

What are the benefits associated with low cost of production?