Economics Answers

What do we call when standard process/steps is missing in research ? Please explain.

ALCHEM (L) is a price leader in the polyglue market. all 10 other manufacturers (follower (F) Firms) sell polyglue at the same price as ALCHEM. Alchem allows the other firms to sell as much as they wish at the establish price by the following function (QT=QL+QF):

P=10,000-10QT

ALCHEM'S marginal cost function for manufacturing and selling polyglue is:
MCL=100+3QL

the agregate marginal cost function for the other manufacturers of polyglue is:
∑MCF=50+2QF

A) to maximise profits how much polyglue should Alchem produce and what price should it charge

B) what is the total market demand for polyglue at the price established by alchem in part (A)? how much of total demand do follower firms supply?

the Osram lamp company, estimated the following demand function for its product:

Q=120000-10000p

where Q is the quantity demanded per year and P is the price per lamp. the firm's fixed cost is $12000 and variable cost is $1.50 per lamp.

a) write an equation for the total revenue (TR) function in term of Q.
b) state the marginal revenue function
c)write an equation for the total cost (TC) function in term of Q.
d)state the marginal cost function.
e) write an equation for total profits (π) in term of Q. at what level of outputs (unitd) and price ($) are total profits maximised? calculate the total profits at this output level

Explain the variables that affect the components for aggregate demand to decrease. Explain in your own words how each of these variable affect the components and how aggregate demand change.

In a particular town there are 100 cars and 50 motorcycles. Each car owner has a
demand curve for petrol given by: Qdc = 20 – 5p for p ≤ 4 and Qdc = 0 for p > 4. Each
motorcycle owner has the following demand function for petrol: Qdm = 15 – 3p for p ≤ 5
and Qdm = 0 for p > 5. Prices are expressed as £ per gallon, and quantities as gallons per
week.
a. If the price is £3, now many gallons of petrol per week are bought by (i) each car
owner and (ii) each motorcycle owner?
b. Sketch the market demand curve for petrol (that is, the combined demand from
car and motorcycle owners).
c. Write an algebraic expression for the market demand function.

in perfect competition, an individual firm is

Why are municipalities taxing sodas?

In a particular town there are 100 cars and 50 motorcycles. Each car owner has a demand curve for petrol given by: Qdc = 20 – 5p for p ≤ 4 and Qdc = 0 for p > 4. Each motorcycle owner has the following demand function for petrol: Qdm = 15 – 3p for p ≤ 5 and Qdm = 0 for p > 5. Prices are expressed as SR per gallon, and quantities as gallons per week. b) Sketch the market demand curve for petrol (that is, the combined demand from car and motorcycle owners)
c) Write an algebraic expression for the market demand function.

give two examples of events that could shift the demand for labor and explain why they do so

. The demand for good X is given by this equation:
Q x= 1.0–2.0Px +0.8I +1.5P –3P z+ 1.0A
where PX, PY, and PZ represent the prices of goods X, Y, and Z; I measures income per capita; and A is advertising. Currently:
P x = 2.00, P y =2.50, P z= 1.00, I= 4, and A= 3.05.
a. Is good X a necessity or a luxury good? How do you know? (4 marks)
b. Calculate the cross elasticity of demand for X with respect to the price of
good Z. Are goods X and Z substitutes or complements? (4 marks)
c. Calculate the advertising elasticity of demand for X. Interpret your answer. (4
marks)
d. What kind of change in the price of X would you recommend if the firm is interested in maximizing revenue? (8 marks)