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Economist believe that production possibility frontier is often bowed because?
Arissa was earning $150,000 a year working as a pharmacist for a drug company. She decided to start her own business that conducted drug trials. She estimates this entrepreneurial talent or forgone entrepreneurial income to be $20,000 a year. She used $250,000 in savings that earned 10 percent interest annually to finance the new business. In the first year, the firm earned revenue of $1,000,000. The costs for rent, supplies, and employees’ salaries were $800,000 Calculate:(Show workings) i) Explicit cost, ii) Implicit cost, iii) Economic cost, iv) Accounting profit, v) Economic profit
What is economics
A supplier will only start to supply T shirts when a prize when a price greater than ₹500 per unit is available. He or she will then increase the output by 2 units for every ₹50 per unit increase in price. Write the equation of the supply function.
- A farmer can feed any combination of animals within the following range:
Pigs Cows
84 12
75 15
Given the option available to him, what is the opportunity cost to the farmer of rearing one cow?
differentiate between cartels and Mergers
Which economic system will you choose and why?
- An increase in the price of hay would cause the supply of beef to _Decrease and the Supply Curve would move to the left__________.
Which determinant causes this change?
Draw a graph showing the change in supply.
Currently, the price of good Z is $20 and the quantity demanded is 16,000 units. In past studies, the price elasticity of demand for Z was found to be -1.25. If the company wants to increase production to 20,000 units, what price of Z will have to be set?
Suppose market demand is Q = 16/p2 and the monopoly’s total cost function is
C(Q) = 6 + Q2/8. Calculate the monopoly’s price, output and profit.
If the market were instead supplied competitively by firms, and each firm has the same cost function as given above, at the competitive equilibrium how many firms will survive in this market?
Hint: for the competitive market, start by assuming n firms are in the market, and then use the free entry and exit condition to determine n.
