Microeconomics Answers

Suppose a firm has the following Total Revenue and Total Cost functions: R(Q) = 100-Q²/100 ; C(Q) = 5000+2Q ; Find: the value of output Q that maximizes the profit of the firm. and also find the firm's profit

The following table provides the information of a perfectly competitive firm (5)

Number of Labors Number of Candy Bars Produced

Per day

1 80

2 150

3 200

4 240

5 250

6 230

7 200

Using the information in the table, find the number of candies the firm should produce if the wage rate is $20 and candy bars are sold for $0.50. (Assume there is no fixed cost.)

How to assess future food security: on foresight, forecasting, projecting, predicting and exploring the future

(a) In a market, demand and supply curves are defined by the following equations: P=50 - 0.25QD QS= -10 + 2P Where, P is the price in pounds, QS is the quantity supplied and QD is the quantity demanded. (i) What is the equilibrium price and quantity? Please explain your working out of the answer. [3 marks] (ii) What is the price elasticity at a price of £30? Please explain your working out of the answer. [3 marks] (iii) What do you expect will happen to the total expenditure on this good if the price increases from £30 to £40? Is this expectation confirmed if you calculate the total revenue for each price? [4 marks]

Evaluate an investment projects and choose best investment option.
Bank deposit rate 6% per annum:
1) Investment 2000, gives a profit at the end of the 1st year 200, 2nd year.b. 500, 3.g.b. EUR 1200;
2) a bon (4 coupons)  with 500  EUR face value. The annual benefit (coupon payment) is 50 EUR. The term of the  bond is 4 years.

Suppose it is announced that industry analysts are predicting that decreased oil supplies from Iraq will cause gasoline prices to rise, beginning next month. In the current week, the announcement would:

Demand for monopoly output at a price of 2, 3, 4, 5  is 80, 60, 50, 30.

 Determine:
1) max total revenue at the monopoly;
2) max total revenue if price discrimination will be used, for example, if  prices 3, 4, 5 will be set for different customer groups

The company operates in a fully competitive market. The following numbers provides 
information on the company's production volume and costs.

Q 1; 2; 3; 4; 5; 6;

AFC 5; 2,5; 1,6; 1,25; 1; 0,83

AVC 5; 3; 2; 5; 10; 13

MC 4; 2; 4; 6; 8; 12;

Determine:
1) How many units does it take to maximize profit if the market price is 4 EUR?
2) Determine -  if the market price is 6 EUR,  company will stay in business?  and if so, how much it will produce?
3) Determine - if the market price is 8 EUR,  company will stay in business?  and if so, how much it will produce?

Andris has started his own business. He has invested his capital- 40 000 in facilities. He rents premises for 5 000, pays salaries - 12 000, raw materials 20 000. 
Bank interest rate 10%. 
Revenue is 72 000. 
Determine costs and profits from the point of view of an accountant and an economist. Will Andris continue to run his business?

The manufacturer has 60 EUR at its disposal. Production resources cost X -2EUR, Y -6 EUR. The manufacturer can use combinations of the following factors to produce 200 items: 
2X, 20Y;
 6X, 10Y; 
10X, 5Y;
 15X, 4Y; 
20X, 4Y.
How many factors must be purchased for this manufacturer to reach the manufacturer's balance by producing 200 units?