Microeconomics Answers

The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same.

1. Compute the doubling time for France’s per capita real GDP.
2. Compute the doubling time for Korea’s per capita real GDP.
3. What will France’s per capita real GDP be in 2045?
4. What will Korea’s per capita real GDP be in 2045?

A monopolist faces the demand curve Q = 120 - P/3. The cost function is C = Q³. Find the 

output that maximises this monopolist’s profits. What are the prices at profits and that output? 

Find the elasticity of demand at the profit maximising output.

Please explain in three well-structured paragraphs the basic arguments stated by the Real-Business-Cycle (RBC) Theory, regarding economic fluctuations.

Julio believes the price of lires will rise next month so he purchases a set of 4 for his pickup truck today

"A consumer has the utility function:u( x1, x2)=min(x1,x2)

and the endowment e=(2; 0).

Determine the consumer’s excess demand function!

Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion worth of bonds?

 The market for lemon has 10 potential consumers, each having an individual demand curve P = 101 - 10Qi , where P is price in dollars per cup and Qi is the number of cups demanded per week by the i th consumer. Find the market demand curve using algebra. Draw an individual demand curve and the market demand curve. What is the quantity demanded by each consumer and in the market as a whole when lemon is priced at P = $1/cup?

What is pure monoply

The demand product is P=400-10Qd and the supply is P=200+10Qs. What is the price elasticity I’d demand for this product when the market is in equilibrium?

Two firms, A and B, rent identical bikes on a beach of unit length: firm A is in extreme 0, B in extreme 1. Each firm has MC = 2. There are many consumers evenly distributed on the beach who want to rent a bike.On the beach there is a strong wind from the right, such that walking against the wind is more difficult than doing it in favor of the wind: those who go from the left to the right have a transportation cost equal to τ per unit walked; those who goes from the right to the left has a transportation cost equal to δ <τ per unit walked.Indicating with p_A and p_B the rental prices of the bikes of firms A and B, respectively, determine the point x* at which the consumer is indifferent between renting the bike from one or the other firm.Find the demand functions of the two firms.Find the optimal response functions of the two firms, assuming they compete on prices.Find the two equilibrium prices.