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A perfectly competitive firm has a cost function of C=Q2+20Q+700 and the equilibrium price is birr 100. find
A. The profit maximizing level of output
B. The maximum level of profit
Why is the firm to stop production if AVC falls below the P=MR line?
Consider a firm that uses capital and labor as inputs and sells 5,000 units of output per year at the going market price of $10. Also assume that total labor costs to the firm are $45,000 annually. Assume further that the total capital stock of the firm is currently worth $100,000, that the return available to investors with comparable risks is 10 percent annually, and that there is no depreciation. Is this a profitable firm? Explain your answer.
Suppose a consumer having a disposable income of 300 birr consumers only two commodities X and Y and his utility function is given as U(X,Y)=50X-X2+25Y given further that price of X and Y are 1 birr and 2.5 birrr respectively, determine:
A. The consumer's optimal bundles
B. His Marginal utility of income and its interpretation
The production function of a firm is given by Q=4L1/2K1/2 suppose the cost of labor is birr 40 per unit and the cost of using capital is Birr 10 per unit
A. Determine the amount of labor and capital that should be used in order to minimize the cost to produce 40 units of output?
B. Calculate the minimum cost of producing 40 units?
Suppose that government of Pakistan gives soft loans to producer.how would You expect such a change to affect output, employment and the real wages in the classical model
Describe any 4capital market financial instruments as used in financial management.
Suppose an investor is given an investment opportunity that will provide a future value of Kshs 50,000 when it matures at the end of two years. How much would an earning of Kshs 50,000 be at the end of 2 years, at a rate of 10 percent?
Suppose cost of production of a firm is given by:
What amount of the product should be produced to maximize profit of the firm if price per unit output is 74? Find the maximum profit or loss.
What quantity of the product should be produced if price per unit is 40?
Find the maximum profit. What will be the decision of the firm to stay in production or stop operation? Why?
What will be the decision of the firm if price per unit is 10?
What is the shut down price level?
Determine the supply function of the firm with domain or range of out put
Your market research unit submitted the income elasticity of demand estimate for non-fed ground beef at 1.94. The economic managers reported that due to a Pandemic the economy will slide into a deep recession and incomes on average are expected to decrease by 15 percent over the next two years. As manager of a meat processing plant, what will be the effect of your purchase of non-feed cattle beef?
Items- Selected cross-price elasticity
Transportation - 1.8
Foods - 0.08
Ground beef, non-fed - -1.94
just explain.
