Economics Answers

Given fix cost is RM 15 and variable cost is RM 2 per unit.
1. State the function of TC, AC and MC
2. State the quantity if AC is minimum
3. Prove it if AC = MC

Given demand function; P=570-0.3Q
a) Find total revenue
b) Revenue function
c) Marginal revenue at the output of 30units
d) quantity that maximise the total revenue
e) maximum total revenue

Bank ABC has rented a space from zebra trader to open up their branch. Following
transactions took place between the two parties: -
– On January 1st 2013, Bank ABC and Zebra Traders signed an agreement under which the
bank would rent the space at a charge of Rs.240, 000 per annum.
– On January 3rd, the bank issued a cheque of Rs.240, 000 in favor of Zebra traders.
– Assume that both parties adjust their accounts on a monthly basis.
A. Record the above transactions in books of Bank ABC and Zebra Traders.
B. What entry will be recorded in the books of Bank on March 31, 2013?
C. What entry will be recorded in the books of Zebra on March 31, 2013?

Hi there, I am a second year university economics students. Generally, I am quite good with economics, but my latest assignment on game theory has been making me pull my hair out. Please help. I can't make heads or tails of any of it!

https://drive.google.com/file/d/0Bz7khTo1Tp0RRkQ3UjhoVWRHUDg/view?usp=sharing

You are asked to solve a public good problem with
2 agents. Agent i has utility function a, log (g1 + g2) + x, where g, is the amount of the public good contributed by agent i and xi = amount of private consumption of agent i. The budget constraint of agent i is x, + gi = wi where w, is the initial endowment of agent i. Assuming wi > ai for each agent,
(a)compute the Pareto — optimal level of public good provision for this economy.
(b)Describe the voluntary contribution equilibria for different values of a1 and a2.

If we are at the natural rate of unemployment, an increase in aggregate demand will lower unemployment in the short run

( )if workers perfectly anticipate inflation
( )regardless of workers' inflation estimates
( )if workers overestimate the consequent inflation
( )if workers underestimate the consequent inflation

If rapid inflation occurs in a relatively full employment economy, well-coordinated monetary and fiscal policies would involve a budget
( )deficit and central bank increase in annual bond purchases
( )surplus and central bank increase in annual bond purchases
( )deficit and central bank reduction in annual bond purchases
( )surplus and central bank reduction in annual bond purchases

Rubber Co manufactures tennis balls. On 1 January 2010, Rubber Co purchased a

new machine for $1.1m (inclusive of GST) which it used to produce the tin cans in

which its tennis balls were placed for sale to retailers. At the time of acquiring the

machine , Rubber Co estimated that the machine would have an effective life of 10

years before it needed to be replaced. Subsequently, on 1 January 2014, as a result

of new technology, a better quality machine became available and Rubber Co

decided to sell the original machine for $330,000 (inclusive of GST) and purchase a

new machine for $2.2m (inclusive of GST).

Requirement:

What are the tax consequences of these arrangements under Div 40ITAA97?

1/ What category of budgets are the governance board most likely to be interested in?
2/ With a long term view which specific two budgets are the most relevant to the governing board and for what reason?

. Suppose the Fed’s target for the federal funds rate moves from 0.5% (current value) to
2%. Using the appropriate graphs carefully explain:
(a) How can the Fed attain such increase in the FFR? HINT: you have to use the graph for the
(interbank) market of reserves
(b) What is the impact of such change on total spending in the economy? HINT: you have to use the
graph with the total expenditure and the 45 degree line.
(c) What is the impact on equilibrium output Y and the price P? HINT: you have to use the AD-AS
graph.