Economics Answers

two software engineers ali and ahmed each engineer up to buy a public domain from Microsoft corporation to develop business software. Before looking at the price, each places an order. Ali says, "i'd 10$." Ahmed says,"i' like worth of 10$." what is each engineer price elasticity of demand?

If firms in a competitive industry incur an economic profit, what happens to supply, price, output, and economic profit in the long run?

Explain graphically how indifference curve analysis can be used to derive a demand curve?

An investor would like to invest in orange juice production and he would like to know how much it will cost to produce a box of orange juice. He has shared a YOUTUBE clip of another orange juice production company to help with this activity. https://www.youtube.com/watch?v=T8KJGtMGMSY
REQUIRED:
From the clip and do the following: -
Identify and discuss all cost elements of orange juice production

) The table below gives the utility from pens and pencils.
Quantity of pens Total utility from pens Quantity of pencils Total utility from pencils
0 0 0 0
1 90 1 70
2 155 2 120
3 200 3 150
4 225 4 165
5 240 5 174
6 246 6 176
(i) If the consumer has an income of $4, pens cost $1, and pencils cost $.20, which of the combinations maximizes the consumer's utility?
(ii) If the consumer has an income of $4, pens cost $1, and pencils cost $.20, what is the consumer's total utility when he or she maximizes utility?

I. Explain graphically how indifference curve analysis can be used to derive a demand curve?
II. If firms in a competitive industry incur an economic profit, what happens to supply, price, output, and economic profit in the long run? Explain
III. What is the relationship between the marginal revenue curve and the demand curve for a single-price monopolist?
IV. Explain the Law of diminishing return and why is it applicable especially in agriculture sector?

What do you understand by the concept What if Analysis and where can it be used?

The television market in South Africa has two major suppliers producing
differentiated television models. The monthly demand functions of the two suppliers is as follows:
Samsung: Q1 = 450-2P1+P2
LG: Q2 = 450-2P2+P1
The marginal costs of production are R60 per unit and fixed costs are equal to zero.
Part 1
Suppose the two producers compete by setting their quantities in accordance with the Cournot model.
a) Derive the two reaction functions of the two firms
b) Determine the output levels of the two producers at the Nash equilibrium
c) Determine the price and the profits made by each producer

Discuss whether the government should allocate more resources to education and healthcare rather than other forms of expenditure