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A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250,
he can produce the cheese at a cost of $9 per kilogram. He is able to
produce up to 400kg,but he plans to take advance orders and
produce only what he can sell. His market research suggests that the
amount he would be able to sell depends on the price in the following
way: the mount decreases proportionally with the price; if he
charged $20 per kg he would not sell any, and if the cheese was free
he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his
profit?
1. The long-run market supply curve in a competitive market is: A. vertical B. horizontal C. upward sloping D. downward sloping E. None of the above
When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods.
The following graphs show the production possibilities frontiers (PPFs) for Maldonia and Sylvania. Both countries produce grain and tea, each initially (i.e., before specialization and trade) producing 24 million pounds of grain and 12 million pounds of tea, as indicated by the grey stars marked with the letter A.
Suppose a monopolistic firm is making loss in the short-run ,can the firm continued to stay in business. Explain
A demand function is given as:[D=25-2p] calculate the quantity demanded. (D) if the price of the product (p)is #6.00
If the average worker produces $55,000 of GDP, by how much will GDP change if there are 120 million labor force participants and the unemployment rate changes from 9.0 8.0 percent?
The long run elasticity of oil demand has been estimated at -0.5. If the price of oil rises by 10% how much will the quantity of oil demanded fall ?
Consider a pure-exchange economy of two individuals (A and B) and two goods (X and Y). Assume both the individuals are endowed with 2 units of good X and 1 unit of good Y each.
Let utility functions of individual A and B be UA = min{XA,YA} and UB = min{𝑋𝐵4,YB}, where Xi and Yi for i = {A, B} represent individual i’s consumption of good X and Y respectively. Determine the aggregate excess demand functions for each good.
A employer employees 7 people and pays them 6 dollars per hour. Product is sold at 3 dollars. To maximize profit what will be the marginal productivity of last worker he employs. Also find marginal productivity of labour and total output
Q4. Find equilibrium Price and Quantity and Price Elasticity of Demand from the following demand and supply functions
i. Q=10-2P2 Q=5+3P
ii. Qd= 200-40P Qs= -40+80P
