Microeconomics Answers

c. P=50 - 0.1Q and P=$20

Question is how can we know that Q=500-10P?

Could you pls be more specific?

A friend of yours on the tennis team says, “Private tennis lessons are definitely better than group lessons.” Explain what you think he means by this statement. Then use the Cost-Benefit Principle to explain why private lessons are not necessarily the best choice for everyone

Explain the specific supply conditions that have affected the price of brazil nuts in 2017.

Explain price ceiling and price flooring also analysed the effects of both actuon on market

An invoice dated 15 August 2019 for RM3,750 inclusive of RM400 transportation charge was paid on 28 August 2019. If the trade discount was 15% and the cash discount terms were 6/10, 5/30, n/60, find (a) the trade discount offered (b) the cash discount if entitled (c) the amount paid 

 Explain How relative factor prices and factor productivity determine optimal input combination. Show clearly how the maximizing output and optimal inputs combinations are achieved in the two cases. 

Mr. Y is BBA graduate student and consumes 2 goods: textbooks and cup of Tea. Mr. Y also earns

a typical grad student income, Rs. 40 a month. He can either spend it all on textbooks and get 5,

or he can spend it all on Tea and get 20 cups.

a. Construct the budget line.

b. Given this information, construct the equation for Mr. Y budget line (put Textbooks on

the x-axis and Tea on the y-axis).

c. Mr. Y gets a research grant and his income increase to Rs. 80 a month. What is the new

equation of his budget lie? Assume that prices are the same as used in part a. If the

marginal utility of a textbook is 20, what is the marginal utility of Tea if he is maximizing

his utility?

d. Now assume that textbooks and Tea are complements for Mr. Y. For him to consume one

textbook, he needs 1 cup of Tea. How many textbooks does he consume given his income

of Rs. 40, and the prices used in part a? What if course (subject) is so boring that Mr. Y

needs 2 cups of Tea for every book that he consumes? What if income stays constant at

Rs. 40, and the price of a book increases to Rs. 10?

With well illustrated diagrams, show and clearly explain:

a) How a firm maximizes profits given cost constraints

b) Minimizes costs given level of output

c) How relative factor prices and factor productivity determine optimal input combination.

Show clearly how the maximizing output and optimal inputs combinations are achieved in

the two cases.