Microeconomics Answers

explain why it is necessary to know what information failure means when classifying goods as merit or demerit goods

due to substantial increase in prices in country A ,the real income level of the population in country A decreases .show a diagram how the decrease in the income level in country A will affect the demand of meat ,which is a normal good .Also indicate how the equilibrium price and equilibrium quantity of meat will change in country A . The direction of any changes should be clearly indicated using arrows .Note that your diagrams should be properly annotated and that marks will be deducted for any missing labels on your diagram

what do we call a good with an income elasticity less than zero?

Suppose the production function of a firm is given ×=0.5lthe power of 1/2*k the power of 1/2 price of labor and capital are given $5 and$10 respectively,and the firm has constant cost out lay of$600

1; find profit maximize level of L and K to employee

2; find MRTS of L to K at optimum

1With an aid of agricultural project, critically discuss the two approaches to the

working definition of project.

Suppose an importer of medical devises imports ultrasound machines: 50% from X, 30% from Y, and 20% from Z. If 10% of the machines from X, 5% from Y, and 10% from Z are defective, (a) what is the probability that an ultrasound machine imported by the importer is defective? (b) if an ultrasound machine is found defective, what is the probability that it came from Z? 

The price elasticity of demand for urban transitfares has been estimated to lie between

-0.1 and -0.6. Based on these results, what isthe economic argument forraising transit

fares? What political arguments might local governments and transit authorities

encounterin opposition to these economic arguments?

If the pre-tax cost function for John’s Shoe Repair is C(q) = 100 + 10q - q2 + 1/3

q3, and it faces a specific tax of t = 10, what is its profit-maximizing condition if the 

market price is p? Can you solve for a single, profit-maximizing q in terms of p? 

(Hint: See Exercise 3.3 and Solved Problem 8.2.)

Show a diagram how the decrease in income level in country will affect the demand for meat

A Hotel in Ville has 1,000 rooms , and the hotel charge customer $ 100 . All the hotel rooms are always rented in any given day . a . To raise revenue , the governor decides to charge hotels a tax of $ 10 per rented room . After the tax is imposed , the price for hotel rooms rises to $ 108 , and the number of rooms rented falls to 900. Calculate the amount of revenue this tax raises for Ville and the deadweight loss of the tax . b . The governor now doubles the tax to $ 20 . The price rises to $ 116 , and the number of rooms rented falls to 800. Calculate tax revenue and deadweight loss with this larger tax . Are they double , more than double , or less than double your answers in part ( a ) ? Explain .