Other Economics Answers

Why measuring price, income, cross and advertisement elasticities of demand for an insurance product is good for the growth of the sector? Use supply and demand curve to illustrate how each of the following events would effect the price/ or premium in quantity of a private health insurance policy (a) if you get benefits under swathya bema yojna of the state government? (b) a decrease in your average income level during pendamic (c) if policy premium are expected to increse in coming future and (d) if more tax benefit are provided for taking this policy?

When does an economy experiences stagflation

Consider a firm operating in a competitive output market. The firm produces output (Y) with input factors labour (L) and capital (K). Let 𝑤 and 𝑟 be the real prices of both inputs, respectively, so normalising the price of output to 1. The firm has a CES production function given by: 𝑌 = 10(0.2𝐾 ^1/3 + 0.8𝐿 ^1/3 ) ^3.

What is the definition of the elasticity of substitution? - And what is the value of the elasticity of substitution in this example

2. A manufacturer of electronics products has developed a handheld

computer, for which the cost of production is given below. Also given are

Quantities and prices that the firm believes it will be able to sell.

Q (1000)​ Price ​MR ​AVC ​AC ​MC

0​​1650

1 ​​1570 ​1570 ​1281​ 2281 ​1281

2​​ 1490 ​1410​ 1134​ 1634​ 987

3 ​​1410​ 1250​ 1009 ​1342.33 759

4 ​​1330 ​1090​ 906 ​1156​ 597

5 ​​1250 ​930​ 825 ​1025 ​501

6 ​​117 ​770​ 766​ 932.67 ​471

7 ​​1090​ 610​ 729​ 871.86 507

8 ​​1010​ 450 ​714 ​839 ​609

9 ​​930 ​290​ 721​ 832.11 777

10​​ 850 ​130 ​750 ​850 ​1011 

(a) What price should the firm charge if it wants to maximize profit in the short

run?

(b) What arguments cam be made for charging a price higher than this price? If a

higher price is indeed established, what amount would you recommend?

Explain.

(c) What arguments cam be made for charging a price lower than the profit

maximizing level? If a lower is indeed established, what amount would you

recommend? Explain.

Two bridges A and B are to be compared on the basis of capitalized cost at 5% interest. 

Bridge A has an estimated life of 25 years, initial cost of P50M, renewal cost of P35M, annual maintenance  of P0.5M, repairs every five years amounting to P2M and salvage value of P5M. 

Bridge B has an estimated life of 50 years, initial cost of P75M, renewal cost of P75M, annual maintenance  of P0.1M, repairs every five years amounting to P1M and salvage value of P10M. 

The initial cost can paid out of available funds. All other expenses will be defrayed by sinking funds. a. What is the capitalized cost of Bridge A? 

b. What is the capitalized cost of Bridge B? 

c. How much savings is realized by choosing the more economical of the two bridges? 

In the short run, equilibrium for monopolistically competitive firms resembles equilibrium for monopolist in that

Suppose you will incorporate the topic of Socioeconomic Factors to the current/future business in the Philippines, 

1. Assess the economic state of our country based on the information you can gather from various media.  What are the economic factors that will affect the operations of the business? How?  

2. How will you persuade the public to patronize the business? What strategies will you incorporate?  

3. How will you utilize the technologies that we have now to offer better products or services to the customers? 

Base on the definition of perfectly competitive market, what is the industry that belongs to this category?

The Green Company produces chemicals in a perfectly competitive market.The current market price is 40, the firms total cost is C= 100+4Q+Q2

a. Complying with more stringent environmental regulations increases the firms fixed cost from 100 to 144.Would this affect the firms output? Its supply curve?

The Green Company produces chemicals in a perfectly competitive market.The current market price is 40, the firms total cost is C= 100+4Q+Q2.

a.Determine the firms profit maximizing output. More generally, write down the equation for the firms supply curve in terms of price P.