Search & Filtering
Perfectly Competitive firm faces a market price of birr 40 and has the following
Cost function: STC = 5800+ 20Q+0.02Q2.
A. What quantity of output is best for this firm in the short-run? Why?
B. Should firm attempt to change some price other than the market price of 40? Why or why not?
Suppose that , firm under perfectly competition market produce two commodities X1 and X2 with corresponding prices birr 10 and birr 15 . If cost function of the firm is TC= 2x12 +x1x2+2x22 where x1 and x2 denote the level of output, then, determine the following questions.
i. Profit maximizing level of output x1 and x2
ii. The amount of maximum profit
consider an overlapping generation in which individuals live for 2 periods. Every period a constant number of N young individual are born. Each individual endowed with the y units of single consumption when young, when nothing when old. the consumption good is non-storable. the valued stock of flat money, involves each period according to Mt = zMt-1, where z > 1. the government uses the receipts from the newly printed money to make lump-sum tranfers to every young individual.
(a) write down the feasibility constraint that a central planner would face. Considering the set of stationary allocations, draw the resource constraint.
7. Define the equilibrium of a market. Describe the forces that move a market toward its equilibrium. 8. Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza? 9. Describe the role of prices in market economies.
1. What is a competitive market? Briefly describe a type of market that is not perfectly competitive. 2. What are the demand schedule and the demand curve, and how are they related? Why does the demand curve slope downward?3. Does a change in consumers’ tastes lead to a movement along the demand curve or a shift in the demand curve? Does a change in price lead to a movement along the demand curve or a shift in the demand curve? 4. Popeye’s income declines, and as a result, he buys more spinach. Is spinach an inferior or a normal good? What happens to Popeye’s demand curve for spinach? 5. What are the supply schedule and the supply curve, and how are they related? Why does the supply curve slope upward? 6. Does a change in producers’ technology lead to a movement along the supply curve or a shift in the supply curve? Does a change in price lead to a movement along the supply curve or a shift in the supply curve?
On the appropriate diagram, show what happens to the market for pizza if the price of tomatoes rises. • On a separate diagram, show what happens to the market for pizza if the price of hamburgers falls.
The total cost function of a monopolistic producer of two goods is TC = 3x + xy + 4y, where x and y denote the number of units of good 1 and good 2, respectively.
If p1 and p2 denote the corresponding prices, then the demand function of each good is p1 = 60 − x + y and p2 = 40 + 2x − y. Find the maximum profit if the firm is contracted to produce a total of 200 goods.
A) x = 198.250, y = 201.750 ; B) x = 255.500, y = 244.500;
C) x = 102.625, y = 97.375 ; D) x = 56.750, y = 43.250 [0.6 points]
Estimate the change in the optimal profit if the production quota rises by one unit.
Suppose the Market for ice cream is a monopolistic competition industry. Assume that the market is at the long term equilibrium.
draw two graphs. On the first one draw the demand and the market supply and identify the equilibrium point. On the second, draw the AVC, ATC, AFC, and MC curves as well as the marginal revenue cure for one firm.
suppose now that the demand decreases. Explain the consequences in the short run and in the long run.
25. In Year 2020, financial markets reacted to the World Health Organization (WHO) announcement that the pandemic would be long term. Holders of U.S. bonds and U.S. treasuries converted much of the securities to cash in a phenomenon called "Dash For Cash". Without any government intervention or intervention of monetary policy, what are the macroeconomic effects if the economy starts at Less Than Full Employment (LTFE). Assume that the price effect dominates income effects.
On average hours a zambian worker works 40hrs per week given that the amounts of hours dedicated to labour determines the supply of labour .
1.find the average hours a zambian worker works in a year and the amounts they would be paid annually if the average wage was k25 per hour.
Find monthly wage for a zambian?
2. Calculate the total labour supply hours for the whole nation in a year.compare working hours and time spent on leisure activities for the week for one worker only employed.
3. If labour was the only Factor of production .use the income method to calculate the national income for zambia for one week
