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Microeconomics
A firm has a monopoly in the market for match boxes. In order to produce Q match boxes, it cost a firm C(Q)=2Q^2
A) Find the marginal cost of producing a matchbox for this firm?
A) Find the marginal cost of producing a matchbox for this firm?
Microeconomics
Assume a country produces haircuts and shirts with inputs of labour. The country has 1000 hours of labour available. A haircut requires ½ hour of labour, while a shirt requires 5 hours of labour.
a. Construct country’s production- possibility frontier.
b. The country is faced with massive unemployment. How will the PPF be impacted? Explain and indicate on graph.
c. The country discovers new technology and moves towards automation. Justify how this will impact the PPF for the economy. Also, indicate the same through the graph.
a. Construct country’s production- possibility frontier.
b. The country is faced with massive unemployment. How will the PPF be impacted? Explain and indicate on graph.
c. The country discovers new technology and moves towards automation. Justify how this will impact the PPF for the economy. Also, indicate the same through the graph.
Microeconomics
Price (Rupees per Ice-cream cup) 140
120
100
80
60
40
Quantity demanded (Ice-cream cup per month) 500
750
1000
1250
1500
1750
Quantity Supplied (Ice-cream cup per month)
1500
1200
1000
750
600
300
a) Plot the demand and supply curves and show the equilibrium price and quantity. Also, briefly explain if law of demand and supply holds true in this case.
b) Is there surplus or shortage in the market at price Rs.40? At price Rs.120?
c) Suppose if the price of frozen yogurt decreases, elucidate the change it might cause on the ice-cream market given the consumption behavior and also illustrates the same through using 2-dimensional space. In your opinion what type of elasticity best describes this situation?
d) Suppose the price of milk decreases from the equilibrium price. Explain what will happen to the supply curve and also indicate the same on the graph.
120
100
80
60
40
Quantity demanded (Ice-cream cup per month) 500
750
1000
1250
1500
1750
Quantity Supplied (Ice-cream cup per month)
1500
1200
1000
750
600
300
a) Plot the demand and supply curves and show the equilibrium price and quantity. Also, briefly explain if law of demand and supply holds true in this case.
b) Is there surplus or shortage in the market at price Rs.40? At price Rs.120?
c) Suppose if the price of frozen yogurt decreases, elucidate the change it might cause on the ice-cream market given the consumption behavior and also illustrates the same through using 2-dimensional space. In your opinion what type of elasticity best describes this situation?
d) Suppose the price of milk decreases from the equilibrium price. Explain what will happen to the supply curve and also indicate the same on the graph.
Microeconomics
In past 50 years the frozen food industry in U.S has grown from $1billion to $27 billion. Discuss the role of opportunity cost in our lives with regards to this huge growth in the frozen food market in the U.S (3 marks)
Microeconomics
A firm has a monopoly in the market for match boxes. In order to produce Q match boxes, it cost a firm C(Q)=2Q^2
A) Find the marginal cost of producing a matchbox for this firm?
b) The demand for match boxes in Q=12-0.25P ,Find the level of output that maximizes the firms profit. What price is the firm charging?
C) What level of output and price would maximize total surplus in the match box market? Hint: Find tje competitive market output level and price?
D)What is the dead weight loss from monopoly power of the firm?
E) Find a price regulation the government could impose that would induce the firm to maximize total surplus, i.e produce the efficient quantity from part (C)
F) If the government gave the firm subsidy, S, for every match box produced, what output level would the firm choose? Find the choice of subsidy that maximizes total surplus, i.e, induces the firm to produce the efficient quantity from part (C) above?
A) Find the marginal cost of producing a matchbox for this firm?
b) The demand for match boxes in Q=12-0.25P ,Find the level of output that maximizes the firms profit. What price is the firm charging?
C) What level of output and price would maximize total surplus in the match box market? Hint: Find tje competitive market output level and price?
D)What is the dead weight loss from monopoly power of the firm?
E) Find a price regulation the government could impose that would induce the firm to maximize total surplus, i.e produce the efficient quantity from part (C)
F) If the government gave the firm subsidy, S, for every match box produced, what output level would the firm choose? Find the choice of subsidy that maximizes total surplus, i.e, induces the firm to produce the efficient quantity from part (C) above?
Microeconomics
A firm has a monopoly in the market for match boxes. In order to produce Q match boxes, it cost a firm C(Q)=2Q^2
a) Find the marginal cost of producing a matchbox for this firm?
a) Find the marginal cost of producing a matchbox for this firm?
Microeconomics
Rice is produced under perfectly competitive conditions. Individual farmers have U-shaped, long-run average cost curves that reach a minimum average cost of $3 per bushel when 100 bushels are produced. If the market demand curve for rice is given by Q=2600-200P, what is the long-run equilibrium price of rice? How much rice will be demanded and how many rice farms will there be? Support your answer with a relevant diagram.
Microeconomics
in past 50 years the frozen food industry in U.S has grown from $1billion to $27 billion. Discuss the role of opportunity cost in our lives with regards to this huge growth in the frozen food market in the U.S
Microeconomics
Suppose that as an part of international trade the government reduces the tariff on imported coffee will it affect the supply and demand for coffee
Microeconomics
, Malaysia, along with six other Asian and Middle Eastern countries
(China, Iran, Saudi Arabia, Vietnam, Singapore, and Indonesia). In contrast to the countries mentioned above, for example, 11 out of 50 states in the United
States of America have legalized the use of recreational and medicinal cannabis (weed).
Discuss the pros and cons of legalizing drugs such as cannabis from an economic perspective
using the concepts of supply, demand, and elasticity.
(China, Iran, Saudi Arabia, Vietnam, Singapore, and Indonesia). In contrast to the countries mentioned above, for example, 11 out of 50 states in the United
States of America have legalized the use of recreational and medicinal cannabis (weed).
Discuss the pros and cons of legalizing drugs such as cannabis from an economic perspective
using the concepts of supply, demand, and elasticity.
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#251105 on Mar 2020
#251105 on Mar 2020