Microeconomics Answers

You have one scarce hour to spend between studying for an examination

or taking classes in a tutorial for Rs. 200 per hour. You choose to study for

examination. What is the opportunity cost of studying?

Question: Suppose you are working in a laptop selling company as general manager, due to Covid-19 situation, all the schools, colleges, Universities has shifted their classes online (zoom, Google classroom etc), due to this situation the Company owner discuss the following future situations regarding shifting of demand and supply of the laptops, the owner required some graphical explanation (shifting of demand and supply curves in each situation) and interpretation of each situation:

1- Draw a market situation which indicates the equilibrium price and quantity of Laptop.

2- What will be the effect on equilibrium Price and Quantity if demand of laptops increases but supply remains the same.

3- What will be the effect on equilibrium Price and Quantity if demand of laptops deceases but supply remains the same.

4- What will be the effect on equilibrium Price and Quantity if there is no change in demand but supply increased.

5- What will be the effect on equilibrium Price and Quantity if there is no change in demand but supply decreases.

6- What will be the effect on equilibrium Price and Quantity if there is equal increase in demand and supply of laptop.

7- What will be the effect on equilibrium Price and Quantity if there is equal decrease in demand and supply of laptop.

8- What will be the effect on equilibrium Price and Quantity if demand increases but supply decreases.

9- What will be the effect on equilibrium Price and Quantity if demand decreases but supply increases

10- What will be the effect on equilibrium Price and Quantity if both demand and supply decreases

Suppose you are working in a laptop selling company as general manager, due to Covid-19 situation, all the schools, colleges, Universities has shifted their classes online (zoom, Google classroom etc), due to this situation the Company owner discuss the following future situations regarding shifting of demand and supply of the laptops, the owner required some graphical explanation (shifting of demand and supply curves in each situation) and interpretation of each situation:

1-           Draw a market situation which indicates the equilibrium price and quantity of Laptop.

You have one scarce hour to spend between studying for an examination or taking classes in a tutorial for Rs. 200 per hour. You choose to study for examination. What is the opportunity cost of studying?

Show the following transaction in the circular flow diagram. Birbhum oil 

mill produces and sells 300 litres of oil at a price of Rs. 110/litre per day. 

Birbhum oil mill engages 4 persons in his factory with a wage of Rs. 500/-

per day

You have one scarce hour to spend between studying for an examination 

or taking classes in a tutorial for Rs. 200 per hour. You choose to study for 

examination. What is the opportunity cost of studying?

Compared to a competitive industry, a perfectly price discriminating monopoly transfers

A) a part of consumer surplus to producers.

B) producer surplus to consumers.

C) deadweight loss away from producers to consumers.

D) the whole consumer surplus to producers

E) None of the above

For a monopoly, the following efficiencies are satisfied

A) Resource allocative efficiency.

B) Productive efficiency.

C) A and B.

D) None of the above.

Suppose the local pharmacy charges lower prices to additional units of products. The pharmacy is

practicing

a. perfect price discrimination.

b. second-degree price discrimination.

c. arbitrage.

d. third-degree price discrimination.

e. non-cost discrimination.

The monopoly firm may earn positive economic profits in the long run because

a. it produces a homogeneous product.

b. it is the only firm that wishes to produce the product.

c. of high barriers to entry.

d. a and c

e. all of the above