Microeconomics Answers

Suppose a firm is currently using 1000 laborers and 650 units of capital to produce its product. The wage rate is Rs. 50, and the price of capital is Rs. 260. The labourer adds 50 units to total output, while the last unit of capital adds130 units to total output. Is the manager of this firm making the optimal input choice? Why or why not? If not, what should the manager do?

Ravan Rusell borrowed Rs.10,000 to buy machinery for his small 

business. The total amount he repaid to his lender was Rs. 12,000. Identify 

the additional amount of Rs. 2000 Rusell paid his lender as which type of 

factor of payment in the circular flow model.

The role played by drmand function in managerial decision making

You like the movie “Tumbbad” and want to visit the movie as many times 

as possible. The total satisfaction derived from watching movie is given in the

following table.

No of times 

watch the 

Movie

1st 2nd 3rd 4th 5th 6th

Total 

Satisfaction 400 700 950 1170 1270 1300

If the cost of watching movie each time is Rs. 220/-, then how many times 

you will watch theMovie?

. Production Possibilities Frontier slopes downward because production of one commodity (X)

can be increased only by decreasing the production of second commodity

(Y). Explain.

In short run wats gets smaller as output increases

Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of RM60,000 annually. Last year you earned a total revenue of RM100,000. Rent and supplies last year were RM50,000. 

a) calculate your annual economic costs,

b) calculate your annual economic profit, and

c) calculate your annual accounting profit.

If TR= 2+3Q^2, then MR is:

While providing poor students with midday meal package, what is the

government trying to improve efficiency or equality?

Describe the trade-off faced by a member of Congress deciding how much

to spend on national parks and a Maths professor deciding whether to

prepare for class.