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A monopolist operates under two plants, 1 and 2. The marginal costs of the two plants
are given by
MC1 = 20 + 2Q1 and MC2 = 10 + 5Q2
where Q1 and Q2 represent units of output produced by plant 1 and 2 respectively. If the
price of this product is given by 20 – 3(Q1 + Q2), how much should the firm plan to
produce in each plant, and at what price should it plan to sell the product?
suppose an economy is described by the following equation:
Y = C + I + G + X - M
C = 14 + 0.60Yd
I = 20
G = 10
X = 15
M = 5 +0.1Y
T =20 +0.4 Y
(a) Find out the equilibrium value of income
(b)Calculate net export
(c) what is the value of export multiplier?
(d) if the equilibrium national income at full employment is N$202, what should be the increase in government spending or in exports to attain the full employment level of income?
Extract the GDP, employment rate, investment, education, political stability or other socio-political, institutional and economic factors for all the economies. Run the regression analysis both for the conditional and unconditional convergence for a sample of developed countries and developed countries, each separately and an aggregate analysis for the global economy. The selection for the development level categories can follow regional divisions or international organization membership, etc.... (For e.g. OECD, Western Economies, OPEC, BRICS, etc) . Plot the respective convergence analysis scatter plots depicting the convergence behaviour. (Use the average per capita GDP growth between 1990 and 2020 as a dependent variable and GDP growth rate in 1960 as the independent variable for the unconditional regression analysis. For the conditional convergence, use additional
1. With reference to the PPC, assume Malaysia is producing 2 types of goods - manufactured goods and agricultural goods. It wants to increase both the output by 20% in 5 years. What steps should the government take to achieve this goal? (4 points).
in the context of the circular flow of economic activity, which of the following would not be a traditional activity of the government
Suppose the demand and supply curves for a product is given by 𝑄 = 500 − 2𝑃 𝑄 = −100 + 3𝑃 a) Which is the supply curve and why? b) Graph the demand and supply curves. c) Compute the equilibrium price and quantity d) If the current price is 100, what is the quantity demanded and quantity supplied? How would you describe this situation and what would you expect to happen in this market? e) Suppose that the demand changes to 𝑄 = 600 − 2𝑃. Find the new equilibrium price and quantity and show this on your graph.
Is NNP greater or lesser than NI
You are trying to decide whether to take a vacation. Most of the costs of the vacation (air fair hotel amd forgone wages) are measured in dolla bit the benefits of the vacation are psychological.How can you compare the benefits of the costs?
The population in country C decreases, due to a lower birth rate. At the same time, there is an increase in the cost of fertilizer, which is used to grow vegetables. Explain how the market for vegetables will be affected by these changes. Clearly indicate how the equilibrium price and equilibrium quantity will be affected by these changes. Make use of a combination of diagrams and verbal explanation to explain your answer. Note that your diagrams should be properly annotated and that marks will be deducted for any missing labels on your diagram
AIT construction Company is into the establishment of theater halls for cinematograph is considering purchasing equipment that costs Ghc23,000. The equipment has an estimated useful life of 5 years and no salvage value. B Company believes that the annual cash inflows from using the equipment will be Ghc65,000.
Required:
i. Calculate the net present value of the equipment assuming that B Company's cost of capital is 10%. Is the equipment an acceptable investment?
ii. Calculate the net present value of the equipment assuming that B Company's cost of capital is 12%. Is the equipment an acceptable investment?
iii. Explain the use of payback period and what are the flaws of the method as compared to NPV method of evaluating cash flows.
