Microeconomics Answers

If a buyer's willingness to pay for a new Honda is €20,000 and she is able to actually buy it for €18,000, her consumer surplus is

a.

€18,000.b.

€20,000.c.

€2,000.d.

€0.e.

€38,000.

explain competitive firm short - run shutdown decision rule

use a diagram discuss and explain why marginal cost above is minimum average variable cost is called supply curve

explain why Lempi prefers blue to yellow, yellow and red and red to blue is impossible

expain why crossing indiffernce curve is impossible

Based on market research, a film production company in Ectenia obtains the following

information about the demand and production costs of its new DVD:

𝐷𝑒𝑚𝑎𝑛𝑑: 𝑃 = 1000 – 10𝑄

𝑀𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒: 𝑀𝑅 = 1000𝑄 – 10𝑄2

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡: 𝑇𝐶 = 1000 − 20𝑄

𝑀𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝐶𝑜𝑠𝑡: 𝑀𝐶 = 100 + 10

Where, Q indicates the number of copies sold and P is the price in Ectenian dollars.

assume that the patient is member of CBHI and this person is supposed to pay 20% of the user fee and will be refunded 80% of the user fee. Based on this information and the above demand equation, a) Develop demand schedule and curve. b) Compare the two graphs and explain the effect on the demand for health of the patient

Since the last few years, significant number of physicians have been graduated. If the government decides to reduce this number starting from this year, what would happen to the supply curve for physician services? Explain

Discuss the situation when the supply a particular health care service becomes price elastic, inelastic and neutral

The demand function and the average cost .Determine the:

Profit function.

Profit. Hence show it is maximum