Other Economics Answers

Who are the poor, and what are their characteristics?

The productivity of labour has increased twice. What will happen with the volume of output, value of one commodity, the value of total output? What is the difference between labour productivity and labour intensity?  

A worker gets wages (salary) from a capitalist. What function will money play in this case? What functions of money do you know?

Us antitrust laws are too restrictive. Is this a normative or positive economics?

Market equilibrium price of white sugar is Rs. 190.00 per Kg. but government impose a maximum price of Rs. 129.00 per Kg. to easy the living cost of general public. Discuss the impact of this impose on the market and critically evaluate the practicability of achieving the government objective.

Consider an economy with two industries. The information technology industry sells $60 of services to final consumers and $100 to the financial sector, which in turn produces $120 of financial services. How much is the GDP in this economy?

Discuss how changes in demand can change equilibrium price

Assuming the supply function is given as: Qs=+5P Determine the quantity

supplied of fish in kilos at a given prices

Price of Fish (per Kilo) Supply (in kilos)

P 20

40

60

80

100

Illustration:

Given:

Required:

Solution:

 A monopolistic producer of two goods, G1 and G2, has a total cost function

TC = 5Q(1) +10Q(2)

where Q(1) and Q(2) denote the quantities of G1 and G2 respectively. If P1 and P2 denote the corresponding prices then the demand equations are

P(1) = 50 - Q(1) - Q(2)

P(2) = 100 - Q(1) - 4Q(2)

Find the maximum profit if the firm's total costs are fixed at $100. Estimate the new optimal profit if total costs rise to $101.

There are two workers. Each worker’s demand for a public good is P = 20 - Q.

The marginal cost of providing the public good is $24. The accompanying graph summarizes the relevant information.

a. What is the socially efficient quantity of the public good?

b. How much will each worker have to pay per unit to provide the socially

efficient quantity?

c. Suppose the two workers contribute the amount needed to provide the quality of public good you identified in parts (a) and (b). A third worker values the public good just like the two contributing workers, but she

claims not to value the good because she wants to “free ride” on the pay-

ments of the other two workers.

(1) Given the three workers’ true demands for the public good, is the amount

of the public good provided by the two workers socially efficient?

(2) Compare the level of consumer surplus enjoyed by these three workers.

Which worker(s) enjoys the most surplus?