Economics Answers

Importance of protecting local industries in South Africa

Which worker is most likely to risk facing a falling income towards the end of their career?
A. a manager in an engineering firm
B. a manual worker in a building firm
C. a supervisor in a retail firm
D. an office worker in an advertising firm

My question is the optimal purchasing rule is satisfied when a budget line is tangent to an indifference curve. Explain it with economic reason and diagram.

AT&T CEO, Michael Armstrong, has told Wall Street analysts that the merger will result in efficiency gains. This implies that the production function for long-distance telephone service post-merger will be given by Q = x [K + 1/2L], where x > 1 is the productivity factor. Suppose that r = 10 and w = 5, and the pre-merger service quality index is s = 12. c) Derive the cost function for AT&T/Sprint post-merger for any value of x. Suppose that service quality declines by one-third to s = 8 following the merger. In addition, assume that the market for long-distance telephone service remains perfectly competitive following the merger. Determine the values of x for which the DOJ will approve this merger.

After the imposition of the price ceiling (and initial market equilibrium), two events took place in
the cement market. First, Ghacem Company Limited obtained an efficient technology of production
which influenced supply of Ghacem cement. This was followed by the second event (after a year)
where the prices of raw materials for Ghacem cement production increased. An economist trained
in the University of Professional Studies, Accra is of the view that, the final equilibrium price, after
the effect of the second event has been felt, can only be lower than the initial equilibrium price (that
is when the two events have not occurred). Another economist trained in the University of Ghana,
however on the other hand thinks the final equilibrium price can only be higher than the initial
equilibrium price. By using appropriate diagram(s) briefly explain who is right. If none of the two
economists is right, what is your view?

C = 50 + 0.80 (Y – T) I = 200 G = 100 a) Find out the equilibrium level of income. b) Suppose G increases to 125 what is the new equilibrium level of income? c) What level of G is needed to achieve a target income of 200?

C = 50 + 0.80 (Y – T)
I = 200
G = 100
a) Find out the equilibrium level of income.
b) Suppose G increases to 125 what is the new equilibrium level of income?
c) What level of G is needed to achieve a target income of 200?

C = 50 + 0.80 (Y – T)
I = 200
G = 100
Find out the equilibrium level of income.
Suppose G increases to 125 what is the new equilibrium level of income?
What level of G is needed to achieve a target income of 200?

AT&T CEO, Michael Armstrong, has told Wall Street analysts that the merger will result in efficiency gains. This implies that the production function for long-distance telephone service post-merger will be given by Q = x [K + 1/2L], where x > 1 is the productivity factor. Suppose that r = 10 and w = 5, and the pre-merger service quality index is s = 12.
c) Derive the cost function for AT&T/Sprint post-merger for any value of x. Suppose that service quality declines by one-third to s = 8 following the merger. In addition, assume that the market for long-distance telephone service remains perfectly competitive following the merger. Determine the values of x for which the DOJ will approve this merger.

Explain three types of price discrimination