Economics Answers

Suppose you have the following production function: Q = f (L, K) = 10L ^½ K^½. In addition, the price of labor is $1 and the price of capital is $4

a. What is the optimal amount of labor and capital if you want to produce 20 units?

b. What is the level of minimum cost ?( Ans L=4 and K=1,Min C=$8)

Suppose the perfectly competitive price is given as $46 and the total cost of the firm is given by TC=14X+2X², find

a. The profit maximizing level of output for the firm?

b. The profit of the firm?

Imagine a perfectly competitive firm producing good A with cost function

TC=400+20Q-2Q²+2/3Q³, where Q is quantity produced

a. determine the firm’s short run supply curve

b. What is the profit maximizing level of output when price of A is birr 180?

Suppose you are given RM500 each month to spend on meals and sports. Each meal will cost you RM5 and each sport will cost you RM2 per time you spend. Explain with a diagram to show that you have achieve an optimum consumption. Carefully derive the bundle of meals and sports at the optimum consumption point and the intercept points in your diagram. Could you able to obtain a higher optimum consumption point if your budget remains at RM500? Explain.

1.

Given the following demand and supply function of milk in a market.

Q_{d} = 28 - 4P

+ P respectively.

Q_{s} = 18

i.

and

Determine the equilibrium price and quantity of milk?

ii.

If government fixes price at GHC 1.00, find the quantity demanded and supplied of milk and comment on the situation market. in the

What is the full economic price that consumers would end up paying as a result of (ii) above?

At the market supply of and demand for some goods are described by formula

Qd=3800-15p

Qs=10p+1300

A producer, in order to maximize his level of production must consider 2 major factors. Given a 2 resources: labor and capital, what must he take into account to attain a certain level of production. How is producer's equilibrium obtained? Explain.

Using the internet, find a newspaper article that focuses on recent economic events in China or Russia. What was the main point of the article? What facts or data did the article present? Did you agree or disagree with the author? Why?

Identify using examples the three types of economic systems

Suppose the economy is experiencing inflation. What would be the

interpretation of how a restrictive monetary policy would address this problem?