Economics Answers

Suggest any two ways to reduce surplus

2. Use the graph below to answer the questions that follows














i. What is the equilibrium quantity?
ii. Suppose a minimum price control PM is impose on the commodity, calculate the surplus that will occur as a result of the policy.
iii. Suggest any two ways to reduce the surplus

Recently government of Turkey is willing to increase the demand for labor in the country. Write a
policy the government can use for this aim. Explain how according to neoclassical labor market
model, this policy will increase the demand. (Or alternatively, explain in which way neoclassical
model fail to capture the effect of the policy you mention.)

In which case, by replacing capital with labor is likely to increase the profits of a company?

You and two friends of yours decided to handle the supply of vegetables to the shops of the city and created a limited liability company. Your friends have invested in the case 5 thousand euro each and you gave the company the right to use your personal car for one year. The car costs 4 thousand euro, you estimated your contribution in the form of the rights of use as agreed with the partners at 7 thousand euro. You have successfully completed the year of work. At your disposal 1800 euro of profit after accounting all costs. How will you share profit between partners?

Suppose that Total revenue of the firm is
TR = 5Q + 3Q2 and TC is TC = Q + 4Q2.
Obtain the quantity that maximizes profit and hence maximum profit.

Enumerate the welfare implications under perfect competition and monopoly markets

You are the general manager of a firm that manufactures personal computers. Due to
a tough economy, demand for PCs has dropped 50 percent from the previous year. The
sales manager of your company has identified only one potential client, who has
received several quotes for 10,000 new PCs. According to the sales manager, the client
is willing to pay $800 each for 10,000 new PCs. Your production line is currently idle,
so you can easily produce the 10,000 units. The accounting department has provided
you with the following information about the unit (or average) cost of producing three
potential quantities of PCs:
10,000 PCs 15,000 PCs 20,000 PCs
Materials (PC component) $600 $600 $600
Depreciation 300 225 150
Labor 150 150 150
Total unit cost $1,050 $975 $900
Based on this information, should you accept the offer to produce 10,000 PCs at $800
each? Explain.

The stock of Townships Ski Resorts Inc. just paid a dividend of $0.78. What is the expected capital gains yield if the stock is selling for $28.25 today and the required rate of return is 15 percent?

Sandhill Co. just paid a dividend of $2.45 per share and its EPS is $17.15. Its book value per share (BVPS) is $120.05. Calculate Sandhill’s sustainable growth rate.