Search & Filtering
Use the production possibility frontier (PPF) to illustrate and explain the scarcity, choice
and opportunity cost of a farmer who is producing maize and sorghum. Use your own
values.
In Goa, India the multiplier effect of iron ore export is calculated to be 1.62. Vidyut kumar ta, iron ore mining gives impetys to Goa's economy Times of India, April 30 2003. Calculate the impact of an additional 1000 rupees of iron ore exports on the economy of Goa
what is a perfectly competitive market
Assume the market for fertilizer is perfectly competitive. Firms in the market are producing output, but they are currently making economic losses.
a.How does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal cost of producing fertilizer?
b.Draw the two graphs, side by side, illustrating the present situation for the typical firm
and for the market.
c.Assuming there is no change in demand or the firms’ cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and the total quantity supplied in the market.
Bob’s lawn mowing service is a profit maximizing firm operating in a perfectly competitive
market. Bob mows lawns for $27 each. His total cost each day is $280, or which $30 is a fixed cost. He mows 10 lawns a day. What are Bob’s decision rules about when to shut down and when to exit the market? Answer using numbers! Refer to the shut down and exit rules from the lectures on perfect competition.
Output. TotalCost Price. AveageVariableCost. AverageTotalCost. MargianlCost. Profit.
0 $1,000 $500 ? ? ? ?
1 $1,200 $500 ? ? ? ?
2 $1,350 $500 ? ? ? ?
3 $1,550 $500 ? ? ? ?
4 $1,900 $500 ? ? ? ?
5 $2,300 $500 ? ? ? ?
6 $2,750 $500 ? ? ? ?
7 $3,250 $500 ? ? ? ?
8 $3,800 $500 ? ? ? ?
9 $4,400 $500 ? ? ? ?
10 $5,150 $500 ? ? ? ?
a. Complete the above table. What is the firm’s fixed cost? How can you tell? Hint: if the firm is not producing output, it still must pay its fixed cost but incurs no variable cost.
Write short note on demand-pull and cost-push inflation. Explain solution graphically
Explain the effect of deflation and suggests measures of controlling it
How does Phillips curve explain the relationship between inflation and unemployment along with it graph explanation
[6:28 pm, 17/02/2022] Anshuman✌️: Suppose that business travelers and vacationers have
the following demand for airline tickets from New York
to Boston:
QUANTITY DEMANDED QUANTITY DEMANDED
PRICE (BUSINESS TRAVELERS) (VACATIONERS)
$150 2,100 1,000
200 2,000 800
250 1,900 600
300 1,800 400
a. As the price of tickets rises from $200 to $250, what
is the price elasticity of demand for (i) business
travelers and (ii) vacationers? (Use the midpoint
method in your calculations.)
b. Why might vacationers have a different elasticity
than business travelers?
