Microeconomics Answers

A 10percent decreases in the price of dominos pizza decreases the demand for hamburger by 50 percent. find out the cross elasticy of demand between dominos pizza and hamburger

A farmer has 50 hectares of land and 120 hours of labour. He can produce either maize or soyabeans. It takes an acre of land and 3 hours of labour to produce an acre of maize. A hectare of maize costs R154,00 to produce. It yields 7,5 tonnes per hectare, and as a consequence it generates a net profit of R56,00 per hectare. On the other hand, if a farmer produces soyabeans, it takes an acre of land and 2 hours of labour to produce an acre of soyabeans. It costs R133,00 to produce an acre of soyabeans. An acre of soyabeans yields 30 tonnes and generates a profit of R47,00 per acre. Using LP, determine the combination of activities which will maximize profits for the farmer.                                  

Formulate a linear programming model for this problem

Assume that the total revenue of 3 units of a commodity is Birr 24, and

the marginal revenue of the 4th unit is Birr 4. Calculate the average

revenue of 4 units

If the total revenue of 7 units of a commodity is Birr 40 and the average

revenue of 8 units is Birr 5, what is the marginal revenue of the 8th

unit?

The TU of first five breads consumed is 4, 10, 15, 18 and 16 one after

the other which of the following is true?

Suppose the average product of 6 workers is 150 units of a good and

that of 7 workers is 170 units. The MP of the seventh worker equals:

Qd=60-2Px+0.01M+7Pr

9.A monopoly damages consumer welfare by[1] producing few quantities of the good.[2] charging a price equal to the marginal cost.[3] increasing the need to acquire credit for maintaining the standard of living.[4] isolating other producers with similar products.10.Which of the following statement(s) is/are correct about a monopolistic firm?[1] The demand for goods is the same as average cost.[2]The firm may be characterised by a price discriminating strategy.[3] The products produced in the market are similar.[4] The firm exists in a perfect information industry.Scenario 1 for questions 11 and 12A monopolist faces the following demand curve, marginal revenue curve and total cost curve for its product:Q = 400 -2PMR = 200 -QTC = 10Q11.Refer to scenario 1. What is the profit-maximising level of output?[1] 0[2] 10[3] 190[4] 200[5] 400

A publishing company plans to publish a book. From the sales data of other publisher of similar books, it works out the demand function for the book as:                                               

Q = 5000 – 5P

Find out

i)                  Demand curve

ii)                Number of book sold at P = Rs. 25

iii)              Price for selling 2500 copies

iv)              Price for zero sales

Elasticity for fall in price from Rs. 25 to Rs. 20

Now indicate on your graph and explain the effect of a decrease in the price of biltong on consumer equilibrium.

Write a mathematical equation that illustrates consumer equilibrium for Johannes.