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A small open economy can be described as follows: Y=C+ I + G + NX, Y = 5 000,
G = 1 000, T = 1 000, C = 250 + 0.75(Y - T), I = 1 000 - 50*r, NX = 500 - 500*β¬, r
=r* = 5 %.
a) Estimate the total national saving, investment, the trade balance and the
equilibrium exchange rate.
b) Estimate the impact on national saving, investment, trade balance and
equilibrium exchange rate, if government increases the purchases of goods
and services by 250?
c) Estimate the change in national saving, investment, trade balance and
equilibrium exchange rate, if the world interest rate increases up to 10 %. (G
= 1 000)
From the point of view of the firm, what decision criteria have been found relevant in the analysis of production and profit.
A firm has the following demand function π· = ππ β π. ππΈ and its total cost are defined by π»πͺ = ππ + πΈ.
a. Find the maximum revenue.
b. Find the production to optimize the profit.
c. Verify if the marginal revenue and marginal cost are the same at the profit-maximizing production level.Β
A firm has the following average cost π¨πͺ = πππ πΈ + ππΈ β ππ.
a. Find the stationary point and determine if it is a maximum or a minimum.
b. Find the marginal cost function.
A Firm has the following production function πΈ = πππ³ β π. ππ³ π.
a.Using differential calculus find the unit of labor that maximizes the production.
b. Estimate function of Marginal product of labor.
c. Obtain the Average product of labor.
d. Find the point at which the marginal product of labor is equal to the average cost.Β
Although parking meters in urban centres may yield little revenue because of the costs of installation and the employees who check and maintain them , most cities still regard them as essential for proper traffic flow. Explain why this is so using the concepts of demand, supply and price.
1. Assess the following functions:
a. Find the stationary points.
b. Determine whether the stationary point is a maximum or minimum.
c. Draw the corresponding curves, they can be in the same graph.
1. π β²(π₯) = π₯ 2 + 6π₯ + 2
2. π β²(π₯) = 10π₯ β 2π₯ 2 + 5Β
5. Using the example of your favourite soft drink, explain how your demand for it can be derived from the utility you receive from its consumption.
4. A demand curve normally slopes down from left to right. What does this indicate about consumer behaviour with regard to price and quantity demanded ? How does marginal utility help to explain this consumer behaviour and thus, the direction of the demand curve ?
A student newspaper has determined that itβs coefficient of demand is less than one at prices below $1.25 but greater than one at prices above $1.25. Considering the product, why do you think elasticity changes?
#340153 on Dec 2023