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Suppose that the competitive firms are facing the following cost function and revenue function, C = 14 + q2,revenue function: = 20q -q2. (a) Find profit function (b)Find marginal cost function. (c) Find marginal revenue function (c)Find output (q) that maximize profit (d)find total Profit
The demand curve for a good is Q =60 - p and the supply curve is Q = p. The government imposes a specific tax of t = 2 per unit of output. (a) find the market equilibrium output (Q) and the price (p) before tax? (b) Find the new market equilibrium output (Q) and the price (p) after tax. (c) Explain the effect the tax has on consumer surplus and producer surplus.
Derive the relationship between marginal cost, wage and marginal product of labor?
Explain the relationship between marginal cost, wage and marginal product of labour?
suppose a customer has income of N$120 per period and faces prices, price of X = 2 and price of Z =3. Her goal is to maximize her utility, described by the functional U = 10X0.5Z0.5..What is the consumers budget constraint?.. State the formula for finding marginal utilities for goods X and Z.. Calculate the marginal utilities for goods X and Z.. State utility maximizing condition for the consumer... Calculate the utility maximizing bundle (X*, Z*)
Explain in detail the price decomposition of a price rise in case of giffen goods.
Does tax revenue always increase with increase in tax rate? Why or why not. Explain.
Can the government ensure that the effect of a food tax imposed on sellers is borne only by
the sellers? Why or why not?
After observing the impact of price controls, a government official commented that Market economy is a good way of organizing economic activity, do you agree or disagree.
When a firm uses different factors of production or at least cost combination the optimum combination of factors is achieved when MPL / PL = MPL / PL. Intuitively explain this statement
