Microeconomics Answers

illustrate and explain two market mechanisms that are used for controlling pollution as an externality.

Which of the following is true of profit maximising level of employment in a perfectly competitive labour market

(1) the marginal revenue product equals the value of marginal product
(2) the marginal revenue product equals the marginal cost of labour
(3) the marginal product equals the marginal revenue product
(4) the marginal product equals the marginal cost of labour

Why it is important to differentiate between a change in demand and a change in quantity demanded

Use diagram to distinguish , clearly between a change in demand and a change in the quantity demanded

Qx=150 -PxPo find point price and cross elasticities

Q=12000-10p2 find price elasticitu

Ongoing technological improvement over the past four decades in Canada has led to continual increases in investment demand, and an increase in the flow of investment, but no clear trend in the interest rate. The reason that we have not seen continual increases in the interest rate over this time period is that

the government intervenes in the capital market.

the annual flow of investment is large enough to offset any change in the interest rate.

the supply of saving curve shifts to the left in response to the increases in investment demand.

natural forces in the economy cause the investment demand curve to shift left to eliminate the excess demand for capital.

technological change has also led to rising productivity and rising incomes and therefore an increase in the supply of saving.

Discuss why entrepreneur might want to change the PED for their products and consider the extent to which this is acheivable

Tom is a full-time lecturer at a private higher education institution and is considering a career in carpentry. He wishes to pursue a career in carpentry (a childhood dream) which he has studied part-time and is now equipped to take on clients. In his current position he earns a rate of $1000 per day and if he were to pursue a career in carpentry he would earn $800 per day. Due to the flexibility of the employment conditions at the higher education institution he works for, Tom can negotiate the number of days he works at and will receive a rate of remuneration based on the number of days worked.
1.Discuss a factor that could lead to an inward shift of the curve drawn.

Tom is a full-time lecturer at a private higher education institution and is considering a career in carpentry. He wishes to pursue a career in carpentry (a childhood dream) which he has studied part-time and is now equipped to take on clients. In his current position he earns a rate of $1000 per day and if he were to pursue a career in carpentry he would earn $800 per day. Due to the flexibility of the employment conditions at the higher education institution he works for, Tom can negotiate the number of days he works at and will receive a rate of remuneration based on the number of days worked.
1. Discuss the underlying assumption of the shape of the above drawn diagram and comment on how likely this could be true with respect the above scenario.