Microeconomics Answers

If the competitive market is $60, total cost= 3q^2-18q+182 & Marginal cost=6q-18.
A. Solve for the profit-maximizing (or loss minimizing) quantity (q*)
B. What is the Market equilibrium price?
C. Should the competitive firm produce q*? Explain why using one of the four key questions and solutions.
D. Does the competitive firm make a profit? Explain why using one of the four key questions and solutions.
E. How much profit (or loss) does the competitive firm make?

Given the 2019 PPF for consumption goods and capital goods shown in the left-hand graph below, consider points A and B on PPF2019. a) Which point would most likely result in a higher current (2019) standard of living, point A with C1 units of consumption goods and K1 units of capital goods, or point B with C2 units of consumption goods and K2 units of capital goods? Explain briefly. b) In the right-hand graph, illustrate a PPF for 2029 assuming that the economy is at point A in 2019; label this PPF as PPFA. Illustrate a second PPF for 2029 assuming that the economy is at point B in 2019; label this second PPF as PPFB. Does PPFA lie everywhere inside or outside PPFB? Explain.


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Qd=200-5p Qs=40+30p tax= 5% what will be equilibrium price and quantity

Clearly describe substitution effect and income effect for a fall in price for a normal good and an inferior good

Assuming the two goods X and Y and two persons, analyze the exchange of goods between the two using the Edge worth Box framework indicating the Pareto efficient allocation

The utility function for a consumer utility is U=30Q11/2Q21/2 .If the price per unit of Q1 is Ksh 10 and Ksh 5per unit of Q2, determine quantities Q1 and Q2 that the consumer should have to maximize utility if the consumer Ksh 350budgeted

c) Alpha industries sells two products, X and Y, in related markets, with demand functions given by:
Px – 13 + 2X + Y = 0
Py– 13 + X + 2Y = 0
The total cost, in shillings, is given by:
TC = X + Y
Determine the price and the output for each good, which will maximize profits.

1. Consider the incidence (or distribution) of the tax payments between employees (suppliers) and employers (demanders). Consider how the incidence would change if the supply curve was more inelastic and/or the demand curve was more elastic. 2. Analyze the impact of a tax on employees, employers, the government, and society as a whole. Explain why the losses in net benefits to employees and employers are larger than their respective shares of the tax payments. 3. Carefully consider whether the government should implement a tax. Analysis of a Tax

Wage: $/Hour
Quanity of Labour: Hours

using economic analysis discuss the following article regarding minimum wage increses inn british columbia.
https://www.cbc.ca/news/canada/british columbia/minimum-wage-bc-1.4526320
Explain the economic consequences both positive and negative if any. why or why not the approach is good? what concerns might you raise?why?

Suppose the following functions describe the market for commodity X
Q=368-7P
Q=-52+13P
With reasons identify the demand and supply function. (2 marks)
Determine the equilibrium price and quantity. Represent your answer on the Cartesian plane (4marks)
With the help of a well labelled diagram show how the scenario would be if the prevailing price were
KES28 (2 marks)
KES7