Economics Answers

The market demand for long-distance telephone service is given by Q = 28 – 2P + s, where Q is quantity demanded, P is price, and s is an index of service quality. The market served by these two long-distance carriers is currently competitive. In addition, both long distance carriers currently use the same technology for producing long-distance telephone service which is given by Q = K + 1/2L. 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
Continue to assume that x = 5/4, but the market for long-distance telephone service remains perfectly competitive following the merger. For what values of s will the DOJ approve this merger?

Suppose that you are in charge of pricing at a local hotpot restaurant. The business needs to increase revenue and your job is on the line. What should you do to your prices?

A firm in a perfect competitive market structure faces a marginal cost function given
by
MC(Q) = 4Q + 5
where Q represents quantity of output produced. This firm earns marginal revenue of
Rs 25 on each unit sale of its output. Suppose this firm decides to produce 3 units of
output, is this a profit maximising decision by the firm? If not, how much should this
firm produce to earn maximum profits? In the long-run will this firm earn negative
economic profits, positive economic profits, or zero economic profits?

Under the demand supply analysis let us assume that the price of hardwood is $50/unit. Now government has imposed a 5% tax to the seller which increased the cost of production. Explain the following with help of diagram.
1)do the cost of production affects cost and supply explain with reference of necessities and non essential goods
2)will there be movement along curve. Explain with reference to necessities and non essential goods
3)in order to maintain the same profit as before imposition of tax how much should the seller increase presuming a) demand of product is perfectly inelastic b) demand for good is perfectly elastic

What will happen to the GDP deflator and CPI of America if the price of steel produced in India and sold to America goes up?

The government has an easier job of dealing with the macroeconomics impacts of consumers and inventors being pessimistic about the future of the company than the period of stagnation. Do you agree? Explain

Qx = 1500 - 10Px + 4Py + 1500A + 2(In)
(523) (2.2) (1.7) (500) (1.5)
R squared = 0.68
F = 35.3
Standard error of estimate = 565
Where Qx = quantity demand for iphoneX
Px = price of iphoneX (RM) = 7000
Py = price of related good (RM) = 8000
A = advertising expenditure in million (RM) = 54
(In) = income (RM) = 4000

Which of the following is the best example of a monopolistically competitive market? *
A) The wheat market.
B) The electricity market.
C) The restaurant market.
D) The market for automobiles

A monopolist demand function is given by; P=Q2-10Q+28 and cost function; C=Q2. If the firm is causing a pollution to the society valued at MC=3, solve for the social optimal level of output and price. What should be the tax level?

Suppose that you are in charge of pricing at a local hotpot restaurant. The business needs to increase revenue and your job is on the line. What should you do to your prices? ​