Search & Filtering
A company wants to select a sample of 1200 customers for a marketing survey in four
districts. The following data are availableMarketing
region
Population
Frequency
Variability
(standard
deviation)
Cost per unit
(Zambian
kwacha)
District 1 18000 4.3 18
District 2 600 6.4 10
District 3 12000 9.4 39
District 4 24000 7.1 24
a) How many persons should be selected from each district;
i) In proportion to the population frequency in each district;
ii) In proportion to the population frequency and variability in each district;
iii) In proportion to the population frequency, variability and cost per unit in each
district?
A firm producing hockey sticks has a production function given by
q=2√kl
The price of labor is “w”, the price of capital is “v”. For any given level of output “q”:
1. Calculate the firm’s long-run total, average and marginal cost function.
2. Please show the cost function is homogeneous of degree 1 in input prices.
3. Please show the cost function is concave in v.
Suppose now that capital used for producing hockey sticks is fixed at “k1” in the short run.
4. Calculate the firm’s short-run total costs as a function of q, w, v, and k1.
What is Economics
. This has been caused mainly by rising prices of domestically- produced goods and services. The government is considering a change in its economic policy to deal with this problem. The proposed policy change would provide a monthly cash transfer of $500 to all individuals in employment who are making $3000 or less each month. The government estimates that 35% of the working population. The government intends to pay for this cash transfer to low-income individuals by imposing a 2% tax on all imported goods and services. does not intend to change its sales tax, which applies to all goods and services consumed, whether domestically-produced or imported. the government recognizes that many firms use both domestic goods and services as inputs into their production processes. The government is concerned that there might be an increase in unemployment due to rising prices. The central bank is considering whether it should raise or lower interest rates, which affects the cost of capital as a factor of production
L Q AP MP
0 0 - -
1 8 8 8
2 22 11 14
3 60 20 38
4 96 ? 36
5 ? ? ?
6 132 22 ?
B1. If in the 5th worker the Average Product (AP) gets its maximum value, fill in the blanks of the table, where there is a question mark, presenting the appropriate calculations.
B2. Formulate the law of decreasing or disproportionate returns. In what quantity of the variable coefficient "labor" does the law of decreasing or disproportionate returns appear? Justify your answer.
B3. The variable cost (VC) of the business consists of labor costs and raw material costs. The wage of labor is w = 3.000 monetary units and is fixed for each worker.
The cost of raw materials (c) is fixed and equal for each unit of product produced.
Find the fixed cost (FC) of the business if at level of production of the 5th worker the marginal cost (MC) is 525 monetary units and the average total cost (ATC) is 700 monetary units.
A. Assume that in a product market, the demand function for the product is Qd = 500-0.5P and the cost function of a company operating in this market is TC = 50 + 3Q2. The company selects the amount of Q produced to maximize its profits.
(a) Solve for the equilibrium price and quantity when the business operates in conditions of full competition.
(b) Solve for the equilibrium price and quantity when the business is a monopoly.
(c) Compare and evaluate your solutions in (a) and (b).
3.1 Use a graph to explain the effect of an imposition by the government of a maximum price in the face mask market. (7)
3.2 Briefly describe any four (4) factors that could result in a product having an inelastic demand.
Given a cobb – Douglas production functionQ = L0.5 K0.4And the prices of capital and labour are ksh3 and ksh 4 respectively while the firm outlay is Kshs.108, calculate the optimal combination of factors inputs.
A farm grows wheat and produces pork. The marginal cost of producing each of these products increases as more of it is produced. Is the farm more efficient with the new technology than ot was with the old one? Why?
Explain, with the aid of a graph, the demand-pull inflation as a cause of inflation
