Microeconomics Answers

Consider a firm with production function Q(L,K) = min( 6L , 3K ).
The wage rate is w = 6, and the rental rate of capital is r = 3.
(a) Calculate the optimal capital to labour ratio
(b) Derive the long-run cost function of the firm.

need help in all! Thank you!

Question 2 (24 marks)
Read the following article from the Financial Times by Andrew Edgecliffe-Johnson published in April 2020: https://www.ft.com/content/22430f34-cb50-4f43-80eb- e2a28b88078e (750 words maximum)
(a) Using economic reasoning, why are masks important? Explain. (3 marks)
(b) Using economic reasoning, why does the market fail to yield the efficient outcome in
the specific scenario given? Explain. (5 marks)
(c) Given the current situation outlined in the article, discuss the pros and cons of
imposing a price ceiling in the United States. (Be specific and link the pros and cons
to the given situation) (6 marks)
(d) Would the imposition of a price ceiling be an effective solution to the problem
outlined in the article? Carefully discuss. (3 marks)
(e) Propose an alternative method of solving the problem outlined in the article. Use
diagrams to support your discussion. (marks will be deducted for incorrect or incomplete labelling of graphs)

Suppose you are a 2 member group and you have to produce 2 projects one is for Arts (draw something) and the other is for maths (complicated calculation based). You have 1 day to produce. both labor (group member) have 24 hours as available resource. So the total resource available is 48 hours. In that resource one of the member is good in drawing and other member is good in maths. You need to discuss how the Production Possibilties frontier will help in allocating the time available (48 hours) in producing 2 product (project of arts and project of maths)

Hint
case 1 = all resoruces for maths = how much marks you may get from that (in terms of percentage)
case 2 = all resoruces for arts = how much marks you may get form that in terms of percentage)
case 3 = divide the time in terms of specialzation = how much marks you may get in terms of pecentage)
Why PPF is negatively sloped?
Why PPF is bended outward?

In a recent article, Peri et al. (2020) examine the economic impact of the migration
from Puerto Rico to Orlando following Hurricane Maria in 2017, and find that employment in
Orlando increased, especially in the construction and retail sectors. They also find that the
earnings of construction workers decreased slightly, but earnings grew in the retail sector.
Are the results for construction sector wages and employment consistent with the specific factors model you learned in class? How about for the retail sector? If not, how can you reconcile
these results with the model? [Hint: Consider not only the labor supply effects, but also the
demand effects, of migration.]

How do you suppose the demographics of an aging population of “Baby Boomers” in the United States will affect the demand for milk?

A firm's fixed costs are €3,000. If total costs are €4,000 for one unit of output and €4,200 for two units, what is the marginal cost of the second unit?

Union members are generally paid significantly more than minimum wage. Why then, do unions support increase in the minimum wage?

i. If the price of rice per Kg increases from Rs 200 to Rs 300, the quantity demand reduced from 10 Kg units to 8 Kg. Keeping the answer in view if price change by 7%, what happen to Quantity demand of Rice. Give suitable example.

A maximizing consumer with preferences u = x1/2y1/2 has an income of 50 dollars. Prices are pX = 1 and pY = 2. At CostCo the price of good X is pX = 0.25. Provide an Indifference Curve Diagram to illustrate and quantify the Income Effect and Substitution Effect for this price change. The horizontal intercept of her compensated budget line is equal to