Economics Answers

Sketch the long run average cost curve from the short run AC curves. Why is it called the planning curve?Is the long run marginal cost curve an envelope curve. Explain?

1. Plot the following Price and Quantity combinations: (4, 8), (1, 2), (5, 10) 2. Is your graph more likely to be a demand curve or a supply curve? Why? 3. Using the equation of a line, and P for price and Q for quantity, what is the algebraic formula of this curve?

Does the trade between the United States and Brazil and Argentina follow the prediction of the gravity model? Discuss on the basis of trade figures and their determinants.

Numerical problem on consumer surplus: Assume that the demand for travel over a

bridge takes the form Y = 1,000,000 – 50,000P, where Y is the number of trips over the

bridge and P is the bridge toll (in dollars).

a. Calculate the consumer surplus if the bridge toll is $0, $1, and $20.

b. Assume that the cost of the bridge is $1,800,000. Calculate the toll at which the bridge

owner breaks even. What is the consumer surplus at the breakeven toll?

c. Assume that the cost of the bridge is $8 million. Explain why the bridge should be built

even though there is no toll that will cover the cost

What do patent,economies of scale and franchise have in common

A company has borrowed K800,000 from a bank. The loan is to be repaid by level instalments, payable annually in arrears for 10 years from the date the loan is made. The annual repayments are based on an effective rate of interest of 8% per annum. I. Calculate the amount of the level annual payment which will be paid over the 10-year term.

Construct an amortization schedule showing the capital and interest components over the first four years of the loan ?

  How would you explain the inverted “U” nature (downward curvature) of the Marginal Product (MP) Curve? How relevant is this concept to the Manager who would like to hire labour given the plant size? 

Graphically show the total, average and marginal product curves for labour with capital as a fixed input. 

Demonstrate how intra and inter temporal choices models can make society incur an opportunity cost if not managed adequately and effectively

What do you understand by the concepts is intra and inter temporal choices model