Other Economics Answers

• The law of diminishing returns applies only in cases where _____ A. fixed factors of production become increasingly utilised.
•  B. production cost decreases.
•  C. production cost increases.
•  D. there is at least one factor of production.

Ama Dodge Lartey is a business analyst working with Mckinsey PLC. As a management trainee, she has been requested to conduct series of activities necessitated by a recent contract that they have won from Ghana National Gas Company Limited (Ghana Gas). The nature of the project requires the construction of onshore facility consisting of an oil jetty in a local farming community in the Western Region of Ghana. That farming community has a population of seven hundred (700) adults with eighty percent (80%) of them being peasant farmers. The community has no school, portable water, community center or other basic amenities and facilities.Your immediate boss has required you to undertake the task below; (a) Refer to information in the preamble plus any other assumptions that you wish to add and conduct a stakeholder analysis on those identified in ‘a’ above using either CATWOE or RASCI or Power- Interest Grid. (b) You are required to directly gather data from the community by using the STROBE method.

Given that; P= 144-12Q

i) Determine the equation for the Total revenue and Marginal revenue

ii) At what output is Marginal Revenue = 0

iii) At what output is Total revenue at maximum

iv) Determine the price elasticity of demand at output where Total Revenue is maximum

discuss whether government intervention in the economy is ever justified in the implementation of measures to fight against COVID 19 in Ghana

What is the nature of the positive externality associated with research and development

Nigeria industrial development has been thwarted over the years by faulty government policies. Discuss this statement in relation to any industry sub-sector of your choice

Max is a utility-maximizer consumer with a utility function U (x , y )=x+√ y and the usual budget

constraint M=px

x+ p y

y , where M is his income, px and py is the price of good x and y,

respectively.

1. Write down Max’s optimization problem as an optimization problem with a single variable, y.

(Hint: solve the budget constraint for x, and plug the solution for x into the objective function.

2. Write down Max’s first order condition(s) for an interior solution.

3. Use the Implicit Function Theorem with the first order condition to calculate all the partial

derivatives of the optimal value of y. Note: you have to calculate these derivatives without

calculating the optimal value of y!

for which values of prices and income are they possible?

7. Write down Max’s optimization problem as a constrained optimization problem.

8. Write down the first order conditions for Max’s constrained optimization problem.