Economics Answers

Show that the inflation-unemployment model can be condensed into a second order differential equation in the variable p. [find time path p(t)]

Assume a market consist of two upstream firms and they are sole suppliers of their respective products. Each of these monopolists sell at a linear price to one downstream duopolists each. What would be the effect of vertical integration on the final good price

Vertical mergers have the potential of substantially reducing competition in a market, and force other firms in the market to also merge. Why does this occur in an industry? What happens to firms who fail to merge vertically ?

You are the manager of a firm that produces Television sets and Antennas.
Information from historical sales shows that based on valuation of the two
products, there are three types of consumers, even though you are unable to
identify these consumers individually at the time of sale. In particular, you
know there are three types of consumers (1,000 of each type) with the
following valuations for the two products:
Consumer type Antennas (GHS) Television sets (GHS)
1 90 60
2 70 140
3 40 160
Suppose it costs GHS 40 to produce each television set and it costs GHS 20 to
produce each antenna.
The firm’s marketing strategists has proposed the following alternative pricing
strategies:
Strategy 1:
You charge GHS 40 for Antennas and GHS 60 for a television set.
Strategy 2
You charge GHS 90 for Antennas and GHS 160 for a television set.
Strategy 3
You charge GHS 150 for a bundle containing one antenna and one television

A farmer plans to harvest Maize on his own specific land. Discuss all the factors which he needs to harvest the whole season of crop. Also mentioned their reward, difference between economic profit and accounting profit, implicit and explicit cost and average cost also?

: A 45 years old women went to market to buy some commodities e.g. chicken, cooking oil, cloths for her own and medicine for her younger kid who is feeling sick. A woman is rational and
has limited amount of money in hand, furthermore that she is not educated, but she follows economics in the same manner as economics graduate. How would you think she will make decision for her shopping which gives her maximum utility (purchased basket of good), Compare your answer with definition of economics by a well-known economist explain it?

Consumer surplus

Assume a market consists of two upstream firms, and they are the sole suppliers of their respective products. Each of these monopolists sell at a linear price to one downstream firm duopolies each. What would be the effect of vertical integration on the final good of price ? Should competition authorities prohibit vertical mergers that lead to higher input prices ?

Vertical mergers have the potential of substantially reducing competition in a market, and force other firms in the market to also merge. Why does this occur in an industry? What happens to firms who fail to merge vertically ?

Suppose TCL incurs huge advertising expenditure resulting from increased number of adverts to inform consumers of the brand name of its product. Should consumers conclude that its products are likely to be of higher quality than other unbranded products. Why or why not ?