Economics Answers

During a five-year period, the ticket sales of a city’s professional basketball team have increased 30 percent at the same time that average ticket prices have risen by 50 percent. Do these changes imply an upward-sloping demand curve? Explain

Suppose a monopoly firm can produce any level of output it wishes at constant marginal (and average) cost of Rs5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is given by Q1 = 55 - P1 The demand function in the second market is given by Q2 = 70 - 2p2
i. If the monopolist can maintain the separation between the two markets, what level of output should be produced in each market, and what price will prevail in each market? What are total profits in this situation?

ii. Assume that the monopolists follows the two-part tariffs pricing policy [T(q) = a + pq], what is the maximum entry fee that must be charged?

iii. How much profit will the firm make?

The short-run total cost function of a firm that employs labour (L) and fixed capital is given by
c = vKo + wq^1/B × Ko^ -a/B
Where w is the cost of the labour and v is the cost of capital
(I) Derived the marginal cost of the firm

ii. Assuming that the firm is a price taking one that sells its output at p per unit, derive the short-run supply function of the firm

iii. If there are 200 firms in the industry with similar cost conditions, compute the total market supply.

Assume that Lakamuun joint is a monopolist that produces plates of TZ at Accra has the following average cost functions, AC= 100/q + 6 + 0.5q.

If the demand function is given by:
q= 24 - 1/4p.

(i)Set up the profit maximizing problem of the firm

ii. Compute the output-price combination that maximizes the profit of the firm

iii. What is the maximum profit

iv. Explain extensively if the firm should or should not continue product in the short run.

What is the group that will eventually have to bear the cost of the government’s expenditure on the subsidy?

A monopolist has the cost function, c=100+6q+1/2q^2
(i) If the demand curve is given by q=24 - 1/4p. compute the price-output combination that minimizes profits. Also, calculate total profits at this price-output combination.

(ii)Assume that it becomes possible to sell in a separate second market with demand determined by q=84 - 3/4p.

calculate the prices which will be set in the two markets and the change in total output and profits from case

(iii) Now suppose the firm still has access to both markets, but is prevented from discriminating between them. What will be the result?

Joyce is operating a sushi restaurant in a small town. She is a monopolist. Her total cost function is C = 50Q − Q2and the demand function is P = 80 − 4Q. Provide a fully labeled diagram and simple calculations to illustrate and quantify how price, quantities, profits and the monopoly efficiency loss would be affected if the firm could implement a Two-Part Tariff.

Gomez runs a small pottery firm. He hires one helper at $10,500 per year, pays annual rent of $4,500 for his shop, and spends $19,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $5,000 per year if alternatively invested. He has been offered $21,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,000 per year. Total annual revenue from pottery sales is $71,000.



Instructions: Enter your answers as whole numbers.



a. Calculate the accounting profit for Gomez’s pottery firm. $
.



b. Now calculate Gomez's economic profit. $
.

how do i plot the below information in a diagram

question: aid of a diagram below the equilibrium wage and above the equilibrium wage rate with labour hours as per quantity variable;

According to the Department of Labour’s new rates, domestic workers working in Area A (bigger metropolitan areas) who work more than 27 ordinary hours per week, must be paid a minimum of R13,69 per hour.
Workers who work fewer than 27 hours per week, must be paid a minimum of R16,03 per hour.
This will mean that a domestic worker who works 45 hours per week will now earn a minimum of R2 669,24 a month.

10. If the price of face mask is increasing from 5 birr to 25 birr the quantity demand for face maskis decreasing from 100 to 20 birr. Calculate price elasticity of demand?