Economics Answers

Using a mobile phone costs $30 per month, and an additional $0.16 per minute of use.
a) What is the cost for one month if the phone is used for a total of x minutes?
b) What are the smallest and largest numbers of hours you use the phone in a month if the monthly telephone bill is to be between $102 and $126?

Suppose that a firm’s production function is given by Q = KL + K, with MPK = L + 1 and MPL = K. At point A, the firm uses K = 3 units of capital and L = 5 units of labor. At point B, along the same isoquant, the firm would only use 1 unit of capital. a) Calculate how much labor is required at point B.
b)calculate the elasticity of substitution between A and B.Does this production function exhibit a higher or lower elasticity of substitution than a Cobb -Douglas function over this range of inputs?
I need the diagram also

Discuss the ways in which the international coffee organisation might be able to make the price of cofee beans more stable.

In spring and summer of 2010 a record number of 30 million sockeye salmon spawned up the Fraser river . In 2009 there were only just over 1 million sockeye spawning. Quite naturally the price of sockeye fell from about $ 5.00 per fish to about $1 per fish .
1. Assuming that 30% of the sockeye were caught each year , calculate the price elasticity of sockeye salmon , using the average price and quantity of your calculation.
2. Do you think the local fishermen were happy with such enormous run of fish ?
How to solve this problem?

If people do not have a complete mental picture of total utility for every level of consumption, how can they find their utility-maximizing consumption choice?

Provide short answers to the following questions. (a) You and your cousin have identical high school grade point average and SAT scores. But because you select Economics as your major and your cousin selects philosophy, you will end up with higher salary and higher taxes. Is this vertically equitable? Is it horizontally equitable? Define “positions” in terms of people’s abilities or income as needed. (b) There are two goods A and B – good A has a normal downward sloping demand and good B has a vertical demand. From the efficiency point of view, how sales of these goods should be taxed to raise a certain (fixed) amount of the tax revenue? What are the possible implications of such taxation for equity?

There is a monopoly producer of smartphones facing the following demand Q 400 2P  (where Q is # of smartphones). Its cost is given by C 100Q  . (a) What are the equilibrium quantity and price of smartphones sold by the monopolist? (b) If the government imposes an ad valorem tax of 20% on smartphones, what happens to the equilibrium quantity and price? What is the tax revenue collected? What is the tax incidence of this tax? (HINT: assume that the tax reduces MR not increases MC).

Which of the following statements regarding the measurements of money is/are correct? a) all the components of the m2 are readily available as a medium of exchange b) m1 consists of notes and coins held by the banks plus the demand deposits c) m3 is the best measure of the monetary sector development

Draw a supply curve for a textbook producer. What happens to it in each of the following scenarios. Please provide short but explicit answers.
a. Retailers cut the price of textbooks
b. A technological advance allows the textbooks to be produced at lower cost
c. The producers raise the price of textbooks.

textbooks is $1,400 and hou...

Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500. If you didn't go to school, you'd live in your parents' house for free, but your other living expenses would be about the same. Also, if you didn't go to school you'd work full time and could earn $8,000. You can still work part time while attending the summer school, but you will earn only $3,000.

a) What will the summer school cost you in terms of money explicitly paid?

b) What are the opportunity costs of going to summer school that you don't pay explicitly? Explain.

c) What is your total opportunity cost of going to school this summer? Explain your answer.