Economics Answers

7) A single monopolistic firm provides pick-up of recyclable goods (bottles, cans, paper, etc.) in a city. The demand for this good is given by P = 1,200 – 2Q. The firm’s marginal cost is MC = 150 + 3Q, where Q is the number of tons of recyclables and P is the price per ton. The firm’s total cost at any level of output is TC = 40,000 + 150Q + 1.5Q2.
a. [6 points] What are the profit-maximizing price and quantity for this firm? What is the firm’s profit at this point?

Describe FIVE types of fraud but include embezzlement, larceny and teeming and lading.

Q1: Anna’s income increases and as a result, she buys more pizzas. Is pizza an inferior or a normal good? What happens to Anna’s demand curve for pizza?




Q2 : Explain how absolute advantage and comparative advantage differ.

Cost elements of orange juice

Oman and Germany both produce oil and cars. Each country has 200 hours of labor per month.


->In Oman,
• Producing 1 car requires 50 hours of labor.
• Producing 1 barrel of oil requires 10 hours of labor.
• Oman can produce 4 cars or 20 barrels of oil per month.

-> In Germany,
• Producing 1 car requires 10 hours of labor.
•Producing 1 barrel of oil requires 40 hours of labor.
• Germany can produce 20 cars or 5 barrels of oil per month.

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a) Which country has an absolute advantage in producing cars? Which country has an absolute advantage in producing oil?

b) For Oman opportunity cost of a car is 5 barrels of oil, while for Germany is 0.25 barrels of oil. Which country has a comparative advantage in producing cars? Why?

c) For Oman opportunity cost of a barrel of oil is 0.2 cars, while for Germany is 4 cars. Which country has a comparative advantage in producing oil? Why?

d) If these two countries were open to trade, which good should Germany export to Oman? Why?

From the following total utility schedule

Qx 0 1 2 3 4 5 6 7
TUx 0 6 16 22 26 29 29 27

a. Derive the marginal utility schedule.
b. Plot the total and the marginal utility schedules.
c. Determine where the law of diminishing marginal utility begins to operate.
d. Find the saturation point.

explain with a aid of a graph the short run equilibruim position of a firm operating in the monopolisitc competitive market structure

firm has a marginal cost of $10, an average total cost of $8, and an average variable cost of $6. Marginal cost is increasing with the quantity supplied. The firm operates in a perfectly competitive market where the price of each unit of output sold is $9. From this information we can infer that: