Economics Answers

Discuss the role of fiscal policy in maintaining macro economic stability, rapid economic growth and a large market for insurance?

The demand function for a particular good in competitive market is given by y = a + bP. What are the associated direct and indirect utility functions?

You are a manager of the firm that produces and markets a generic type of soft drink in a competitive market.In addition to the large number of generic products in your market,you also compete against major brands such as coca cola and pepsi.Suppose that due to successful lobbying efforts of sugar producers in kilombero,parliament is going to levy a $0.50 per pound tarrif on all imported raw sugar-the primary input for your product.In addition,Coke and Pepsi plan to launch aggressive advertising campaign designed to persuade customer that their branded products are superior to generic soft drinks.How will these events impact the equilibrium price and quantity of generic soft drinks? (10 points)

Keynesian approach to the demand for money

given the data solve the following asked to maximize profit in a monopoly market

(1) Q = 100 - p; (demand curve for firm output)

(2) TC(Q) = 100 + 20Q +Q2; (cost curve)

a. Compute the MR and MC curves

b. Compute the profit maximizing output

c. Compute the price of that output that maximizes profit

d. Compute the profit to be realized for that output

In your own words, explain how you will use the Core Adjacency framework to identify the growth strategy for a business. Choose any business and identify 3 growth strategies for it using the core adjacency framework.

When does an economy experiences stagflation

Suppose you are the CEO of an online apartment rental platform. While the industry is extremely competitive, you have managed to attract a lot of customers, and have been successful in helping more than 5 thousand tenants find and book an apartment.

You have been able to this by targeting students as a market segment, and by making the platform absolutely free. There is no cost for tenants or landlord to use the platform. 

However, the company’s investors now need to see the company generating revenues and profits.

How will you transition the company from its current business model of providing the platform for free, to making revenues? 

Helen has been selling designer clothing and accessories for pets through her online ecommerce store, primarily to Canadian pet owners. She wants to now expand to the United States and is considering a variety of Digital marketing strategies. Since she has been operating the business profitably for a few years, she has allocated a high budget towards marketing for her US expansion plans and believes she first needs to increase the brand awareness for her business.

Identify at least 3 digital marketing strategies that Helen should use, given her goals and the budget allocated. Provide the reasoning behind your decision.

Also identify at least 1 important metric that he should track, associated with each of the strategies identified.

Given the following Cobb-Douglas consumption function: 

𝑈 = 𝑋1 0.5 𝑋2 0.4;     𝑠𝑢𝑏𝑗𝑒𝑐𝑡 to: 2𝑋1 + 5𝑋2 = 250 i) Mathematically find the optimum values (the quantities which maximize the Utility function) of X1 and X2 ii) Find the marginal unities of X1 and X2 and interpret iii) Find the Lagrangian multiplier and interpret iv) Show the optimum consumption combination using graph