Microeconomics Answers

Suppose a monopsonist company employing 5 workers at a wage rate of K20decides to hire the sixth worker by increasing the wage rate to K25 per hour per worker:
With the help of a diagram explain how the new wage rate will affect labour demand. (7 marks)
Calculate the additional cost of hiring the sixth worker. (3

With the help of a diagram, explain the marginal profit rule for a company under perfect competition

What are the costs and consequences of providing the subsidies and welfare

What is the south African government providing and to whom

With current technology, suppose a firm is producing 1800 packets of banana bread daily. Assume that the least-cost combination of resources in producing those loaves is 35 units of labour, 20 units of land, 28 units of capital, and 45 unit of entrepreneurial ability, selling at prices of $40, $54, $62, and $40, respectively. Firm sells these 1800 packets at $3 per packet. Based on the given information, answer the questions given below.
Total revenue:
Cost of labour:
Cost of land:
Cost of capital:
Cost of entrepreneurship:
Total cost:
Profit or loss:
Will it continue to produce banana bread? Why?
If this firm’s situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good?

Create a demand function of international student studying abroad

Why does an indifference curve slop towards the right ?

Explain the relationship between average cost and marginal cost with the help of diagram.

" law of diminishing returns is universal". explain