Economics Answers

13.Assume the total cost of a producer of a commodity in the short - run is given by the equation:

TC = 30,000 + 15Q2 + 5Q Where: TC = total cost, Q = level of out put

Using the given total cost find equations for:

(A)- Variable costs (B) - Fixed costs (C) - Average variable costs

(D) - Average fixed costs (E) - Average costs (F) - Marginal costs

1. Suppose, for a perfectly competitive firm, marginal cost function is given by:

   MC = Q2– 2Q + 20

Find the quantity produced (Q) at the equilibrium level of output, if price per unit of good produced is Birr 44

Decrease in population rate, increase in the cost of fertiliser, which

used to grow vegetables, explain how the market for vegetables will be

affected by theses changes

Suppose the oil wells in Iran, Iraq and Kuwait are set alight, resulting in a dramatic and prolonged decline in the world output of oil. Use demand and supply curves to illustrate how this will affect the equilibrium price and quantity of oil.  

Due to substantial increases in prices in Country A, the real income level of the population in Country A decreases. Show on a diagram how the decrease in the income level in Country A will affect the demand for meat, which is a normal good. Also indicate how the equilibrium price and equilibrium quantity of meat will change in Country A.

Which of the following statements is correct?

A. The level of production is always equal to thr lrvrl of production

b. In the Keynesian model, income is determined by the interest rates

c. Firms receive payments for the factors of production

d. The level of income is always equal to level of spending

Economists assume that a consumer is expected to make rational decisions but not functional. As a consumer of spaghetti ( GOOD A ) and Rice food ( GOOD B ), discuss how you might apply economic reasoning in making your decisions rationally. What problems can arise when you make functional decision(s)?

The population in country C decreases, due to a lower birth rate. At the same time, there is an increase in the cost of fertilizer, which is used to grow vegetables. Explain how the market for vegetables will be affected

Decrease in population rate, increase in the cost of fertiliser, which used to grow vegetables, explain how the market for vegetables will be affected by theses changes