Economics Answers

Assume that there are four firms supplying a homogenous product. They have identical cost functions given by C (Q) = 40 Q. If the demand curve for the industry is given by µ = 100 – Q, find the equilibrium industry output if the producers are Cournot competitors. What would be the resultant market price? What are the profits of each firm?

Use the law of diminishing returns to explain why pro golfer Rory McIlroy should not spend all of his practice time working on his putting.

Use supply and demand to show why teams that win championships typically raise their ticket prices the next season.

Is the following statement true or false? Explain your reasoning. “I am attending college on a full athletic scholarship, so the opportunity cost of attending college is zero for me.”

Use an appropriate economic theory to explain why Kobe Bryant might employ someone to answer his fan mail even if he can read the letters and type the responses more quickly than the person he employs?

Lucas’ point of view, what are the limitations of the Keynesian model? What improvements does he suggest?

1. governments often use a sales tax to raise tax revenue which is the tax per unit times the quantity sold. Will a specific tax raise more tax revenue if the demand curve is inelastic or elastic at the original price? Explain.
2. in tabular form differentiate between positive and normative economic analysis. Give an example in each case.

Lucas’ point of view, what are the limitations of the Keynesian model? What improvements does he suggest?

If the use of financial leverage magnifies the earnings per share under favorable
economic conditions, why do companies not employ very large amount of debt
in their capital structures? Justify your views in elaborate. Detailed answer i need mark of this question 15 marks

An economy with fixed exchange rate cannot maintain an independent monetary policy. Do you agree with the above statement? Substantiate your answer with appropriate diagrams.