Microeconomics Answers

The market demand and supply functions for an electronic typewriter are

Q_D = 20,000 – 10P

Q_S = 10,000 + 20P

               Western Electronics Inc. is one of many firms in this perfectly competitive industry. Its marginal and average cost functions are

                                               MC = 10 + 2Q

                                               AC = (1,000/Q) + 10 + Q

               a/ What is the profit-maximizing output rate for Western?

               b/ How much economic profit will be earned at that rate of output?

Midland Power and Light is the only seller of electricity in the area. The demand function facing the firm is   Q = 250 – 0.5P

     Where Q is quantity demanded and P is price. The firm total cost function is

     TC = 100 – 10Q + 0.5Q, and the marginal cost is MC = -10 + Q

     a/ Determine the profit-maximizing price and output rate for Midland.

     b/ Determine the cost per unit, profit per unit, and total profit.

Alpha Pharmaceuticals has a patent on a new medication used to treat high blood pressure, so it is the monopoly seller of this new drug product. The marginal cost of producing one dose of the drug is R10, and the elasticity of demand for the product is -3. What is the profit maximising monopoly price for this patented drug product

Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market. If the price of coal increases, then the firm's

A multiplant monopolist can produce her output in either of two plants. Having sold all of her output she discovers that the marginal cost in plant 1 is R30 while the marginal cost in plant 2 is R20. To maximize profits the firm will

In the circular flow of income and spending in south africa , ___ firms in the factor market becomes ___ households, while ___ households in the goods market becomes ___ firms.

Using supply and demand diagrams, explain each of the following statements:

(A) Banning onion exports should decrease the domestic price of onions.

(B) Banning single use plastic will increase the price of cloth bags

what is microeconomy

Explain the two characteristics of the Cobb Douglas production

function that make it particularly useful to macroeconomists

A researcher estimated the following equations in the demand and supply of shirts. D=200-25p S=16+11p. Calculate the equilibrium price and quantity.