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A farmer has a capital of P2,500 for his crop production. Labor cost P240.00 per day and fertilizer cost P360.00 per bag. What would be the combination of the two resources to minimize costs? If the money will be spend on labor, how many days will his budget last to pay labor? How many bags of fertilizer can he produce? Determine the total no. of laborers can the farmer employ. Show your solution. Illustrate the isoquant curve and the isocost line of the mentioned items.
The terms microeconomic means what
Suppose an economy is described by following aggregate expenditure (AE) model: C = 10 + 0.8YD I = 30
where C is consumption (0.8 is the marginal propensity to consume) YD is disposable income, and I is investment spending.
- (a) Derive an expression for AE as a function of Y. Calculate the equilibrium level of Y and illustrate in a diagram with AE on the vertical and Y on the horizontal axis.
In 2010, President Barack Obama and Congress enacted a healthcare reform bill in the United States. Two goals of the bill were to provide more Americans with health insurance (via subsidies for lower-income households financed by taxes on higher-income households) and to reduce the cost of healthcare (via various reforms in how healthcare is provided). a. How do these goals relate to equality and efficiency? b. How might healthcare reform increase productivity in the United States? c. How might healthcare reform decrease productivity in the United States?
Supply and demand conditions can be expresses in quadratic form. Find the price and quantity given;
The demand function; p+q²+3q-20=0
The supply function; 3q²+10q= 5.
From your answer a above determine what happen when government decides to fix price;
a. Above the equilibrium price
b. Below the equilibrium price
[Hint; hypothetical diagram is essential]
Suppose a firm faces a cost function of c= 8+4q+q².
a. What is the firm's fixed cost
b. Drive an expression for the firm's average variable fixed cost
1. Develop the circular flow diagram and illustrate the interdependence between sectors. Add the government and again show how it relates with other sectors and markets?
to what extent do you agree on the statement " low economic growth and consumer spending are the biggest factors effecting wage on the UK
. Assume that the demand and supply functions for a commodity is given as P = 80 - Q and P = 20 + 2Q , respectively. If the seller must pay a tax of $6 per unit. Calculate the new supply function, equilibrium price (with tax and without tax) and the equilibrium quantity.
Peter consumes only chocolate ice cream and vanilla ice cream. He is spending all of his income. His marginal utility of chocolate is 200 and his marginal utility of vanilla is 200, and the price of chocolate is $1.00 per scoop and the price of vanilla is $2.00 per scoop. To maximize his utility, Peter should
