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Consider the following total cost function: TC = 2/3Q3 – 10Q2 + 200Q + 50 A) Identify the FC and VC function? B) Calculate AVC, AFC, ATC, and MC functions C) Determine the level of output at which AVC reaches minimum point and the minimum AVC at that level of output?
Dawit plans to consume two goods (good x and good y) with a limited budget. If Dawit’s budget line has intercepts 100 units of good x and 50 units of good y and price of good x (Px) is $100. Then, answer the next three questions. A) What are Dawit’s income and Price of good y (Py) B) What is the simplified version of Dawit’s budget line equation? C) If Dawit’s utility function is given by U(X; Y) = X0.5Y 0.5, how many units of good X and good Y would he consume if he choose the bundle that maximize his utility subject to his budget constraint?
What is Monetary Policy? Discuss the effects of each instruments of the monetary policy on money supply, interest rate, income and employment.
Discuss the difference between GDP and GNP. What about Nominal GDP and Real GDP?
. Discuss the economic effects of inflation
What is the difference between GDP deflator and Consumer Price Index?
The short run AVC, AC and MC are all U-shaped. Why?
What is the difference between Accounting profit and Economic Profit?
What is the Law of Variable Proportion?
What is Ceteris Paribus Assumption? Why this assumption is important in economic analysis or formulation of an economic theory? Explain it with examples, as appropriate
