Economics Answers

SRTC = 8 + 1⁄2q2 and therefore MC = q.

If the minimum point of the short-run ATC curve for all firms(existing and potential)is also the minimum point of the long-run average cost curve (LRAC), calculate the long-run equilibrium price, market quantity, and firm quantity. What is the long-run equilibrium number of firms in the industry? [4]

1. Suppose that an economy is composed of three classes. Labourers, traders and capital owners. The size of each of the classes are 60%, 30% and 10% respectively. Laborers produce all the output in this economy by using capital borrowed from the capitalists and then use the services of traders to market their produce. For this, the labourers have to pay 40% and 20% of their produce to the capitalists and traders respectively.
2. Draw the Lorenz curve for the income distribution of this economy. Calculate the Gini Coefficient.
3. Suppose that the capitalist are taxed 10% of their income and this is distributed as transfers to the labourers. Draw the new Lorenz curve and compare income inequality between the market income distribution and the disposable income distribution.

Uncle Akeju is 65 years of age and has a life expectancy of 12 years. He wishes to invest N20,000 in an annuity that will make a level payment at the end of each year until his death. If the Interest rate is 8 percent, what income can uncle Akeju expect to receive each year

Mr. Agunton is planning for her retirement. He is 30 years old today and would like to have N500,000 when he turns 55, he estimates that he will be able to earn 8 percent rate of return on her retirements over time; he wants to set aside a constant amount of money every year (at the end of the year to help achieve his objective. How much money did Agunfon invest at the end of each of the next 25 years to realize his goal of N500,000 at the end

Consider a monopolistic competitor who has the following demand function p=140-4Q.In additionsuppose that his total cost function is given Tc=10+5Q² . Find his equilibrium price and quantity

A government conducts a cost-benefit analysis into the construction of a new high-speed railway network. The analysis reveals the following information. If it is to build the railway network, the government requires that the net social benefit is more than US$20 billion. What must the external costs be to satisfy the government?

14.6

Suppose a monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is given by

Q₁ = 55-P₁,

and the demand curve in the second market is given by

Q₂=70-2P₂.

a. If the monopolist can maintain the separation between the two markets, what level of output should be produced in each market, and what price will prevail in each market? What are total profits in this situation?

b. How would your answer change if it costs demanders only $5 to transport goods between the two markets? What would be

the monopolist's new profit level in this situation?

If CRR in the economy is 5% and initial deposit in the commercial banks is ₹50,000, what will be the money multiplier and what will be the money supply in the economy.

do we need cashless transaction what are the modes of cashless transaction

1. Calculate the NNY if investment is 400, consumption change from 250 to 310 and NY from 7500 to 8500.
2. Calculate the NNY if export is 4550, consumption was 350 and is now 475, taxes changed from 50 to 125 and NY was 5000 and is now 7000.
3. Calculate NNY, if the investment is 375 consumption was 700 and is now 900, taxes changed from 70 to 175, imports changed from  100 to 175 and NY from 7500 to 9000.
4. Income increase from O to 100 and consumption 60 to 130. What is the consumption function?
5. Calculate the consumption if the income is O, 1500, 3000, and 4500, saving is -1000 and the savings change from 1000 to 1450.
6. Calculate NNY, if the government spending is 300, consumption change from 150 to 275 and NY from 500-6000.