Microeconomics Answers

A firm's production function is given by Q= L2e^-0,01L

Find the value of L that maximizes the average product of labour

Edward and Emmanuel expressed the preferences for red-red (plantain and beans).
Their preferences are such that Edward prefers the plantain to be dominant in his red-
red while Emmanuel prefers the beans to be dominant in his red-red. With plantain on
the vertical axis and beans on the horizontal, graph the indifference curves for Edward
and Emmanuel.

Explain the economic decision making that a consumer undertakes to maximize their satisfaction when buying goods or services. Be sure to use the MU/P model that was introduced in class. Explain the model used and be sure to describe the substitution and income effects connected to a change in the price of one of these goods. I think that this is easier to do with a specific, relevant example.

Suppose that the quantity of corn supplied depend on the price of corn (P) and the amount of rainfall (R). The demand for corn depends on the price of corn and the level of disposable income (I). The equations describing the supply and demand relationships are Qs=20R +100P and Qd=4000-100P+10I.
a) sketch a graph of demand and supply curves that shows the effect of an increase in rainfall on the equilibrium price and quantity of corn.

David runs his own business. He received an offer from a company for $50,000 per year. If he sells his business, he can get an amount of $100,000. Assume the annual interest rate is 5%. David is confused to run his own business or join the company. David annual revenue from his business is enough to cover all explicit costs and has $60,000 left over. There are no additional implicit costs. Calculate David’s accounting and economic profit.

Edward and Emmanuel expressed the preferences for red-red (plantain and beans). Their preferences are such that Edward prefers the plantain to be dominant in his red-red while Emmanuel prefers the beans to be dominant in his red-red. With plantain on the vertical axis and beans on the horizontal, graph the indifference curves for Edward and Emmanuel.

An increase in quantity demanded of ice-creams during summer is a movement along the demand curve. True or false? Explain.

The vertical distance between the average total cost curve and the average variable cost curve

1、 The price of a shirt is 80 yuan, the price of fast food is 20 yuan, and the consumer is at the equilibrium point of the utility maximization of the two products.
Seek: Marginal rate of substitution of fast food to shirts

A is the branding manager in his company and one of her asks is to convince
buyers that her company’s product is different from those offered by rivals.
B is the sales manager and his company doesn’t even have a branding manager to work with in such a capacity. The company doesn’t think it is necessary.
State the reasons and theories involved. Use diagrams to illustrate your answer