Other Economics Answers

Show that the elasticity of demand at all points on the curve y=alpha*x^2 is numerically equal to unity

Let the production function be given by Q = KL with r = 2 and w = 1. [Note: (marginal product of capital) MPK = L and (marginal product of labor) MPL = K.]

a) How much K and L is employed in the efficient production of 32 units of output?

b) What is the minimum cost of producing 32 units of output?

c) Show your results graphically.

4. Let the production function be given by Q = 2K + L with r = 3 and w = 1. a) How much K and L is employed in the efficient production of 10 units of output? b) What is the minimum cost of producing 10 units of output? c) Show your results graphically. 5. Let the production function be given by Q = min{2K, L} with r = 2 and w = 1.

a) How much K and L is employed in the efficient production of 20 units of output?

b) What is the minimum cost of producing 20 units of output?

c) Show your results graphically.

6. Derive the cost function associated with the production function in questions 2. and 3. The cost function is of the general form C(Q) = xQ. What is the value of x?

Explain the possible causes of unemployment and explain which is responsible for most of the unemployment in your country.(12 mrks)

Apples and oranges are substitutes. A freeze in Florida destroys most of the orange crop. What would you expect to happen to the market for the following:

a. Oranges?

b. Apples?

c. Orange Juice?

Describe the risks that an organisation may face for maintaining a small supplier base

1. The initial price of a cup of coffee is Php1, and at the price, 400 cups are demanded. If the price falls to Php0.9, the quantity demanded will increase to 500

a. Calculate the (arc) price elasticity of demand for coffee. Show the solution.

b.Based on your answer to question 1.a., is the demand for coffee elastic or inelastic?

c.Based on your answer to question 1.a., if the price of coffee is increased by 10%, what will happen to the revenues from coffee? Carefully explain how you know.

A Limited supply of a product remains available

10 examples of positive and normative statements

With fixed cost of ksh 400,000 a firm has an average total cost of ksh 3000 and average variable cost of ksh 2500 find it's output

3. Why does a demand curve generally slope downward