Economics Answers

Royal steels Ltd. manufactures metal office furniture with the following production function :
Q = 20K 0.1 L 0.9
The firm currently is producing efficiently using 20 units of capital and 50 units of labor
( a) what is the rate of output ?
( b) What are the relative prices of capital and labor ( i.e., what is the ration of the two input prices?) can u determine the actual price of labor and capital ? Explain
(c) if output sells for Rs. 200 per unit, can you determine the firm's profit? why or why not ?

Given the production function Q = 30K 0.7 L 0.5 and input prices r = 20 and w = 30.
( a) Determine an equation for the expansion path
( b) What is the efficient input combination for an output rate of Q = 200? For 500?

Suppose, in a two sector model comprising consumers and firms, that the individuals receive
the following payments for their provision of goods and services: wages K60000, interest
K30000, rent K10000 and profits k8000. Consumption spending is K101000, planned
investment expenditure is K20000 and actual investment expenditure is K7000.
a) What is the equilibrium output?
b) What is the level of saving in this economy; clearly show how it’s calculated.
c) What is the relationship of saving and investment?
d) What is a leakage from the circular flow of income?
e) Why is investment spending viewed as an injection into the circular flow of
income?

France and Italy are major producers of wine. Workers in France go on strike. Show the effect on the price and quantity of the market for French wine. Also, show the effect of the situation on the price and quantity of the market for Italian wine. Explain in words and graphically.

Px = $2, Py = $1, and income of $15

Decrease in price from R50 to R40 causes quantity demands to increase from 2500 to 3000.using sex elasticity of demand ,the price elasticity of demand is

Find the equilibrium of L and K subject to a given output:

minimize cost: C=40K+20L subject to Q=60LK = 3000

A decrease in price from R50 to R40 causes the quantity demanded to increase from 250p to 3000 units. Using the arc elasticity of demand, the price elasticity of demand is...

Find the equilibrium of L and K subject to a given output:
Minimize cost: C = 40K+ 20L Subject to Q = 60 L K= 3000
Sir please solve this question

Mark’s preferences over two goods are given by the following utility function
U(x1,x2) = x1x2 + 2x1
and his financial resources are unlimited. The prices in the market are P1 = €4 and P2 = €2.
a) Does one observe that “more is better” in the case of each good?
b) In the case of each good, how does marginal utility behave as consumption increases?
c) What are the optimal quantities that Mark should consume? Comment.
d) If one were to limit Mark’s financial resources to income I (a finite amount), how much
would he spend in total?