Ask Question, Ask an Expert


Ask Microeconomics Expert

problem 1:

a) State the advantages and drawbacks of economic growth

b) In Zambia, is the demand for fuel elastic or inelastic? describe why? State an illustration to support your answer.

c) Describe the benefits and drawbacks of i) sole proprietor, ii) partnership and Incorporating.

problem 2: The XYZ drug company is considering investing in research that would lead to a cost-saving innovation in its production of a special rabies vaccine. Supposing the firm can keep this innovation solely for its own use, will the raised profits from the lower marginal costs be bigger if the firm is in a competitive market or if it is a monopoly?

Describe your answer in a graph (avoid AC curves) and with words.

problem 3: Mulenga and Kasanga are rival bakers. The table shown below illustrates how many brownies and toffee bars each can bake in 1 hour.

A)  If each baker works a typical 40 hour work week, draw the production possibility frontier for each baker. Put ‘Brownies’ on the horizontal (x-axis) and ‘Toffee bars’ on the vertical (y-axis). Be sure to recognize the intercept values on your graphs.

B) Assume that each baker decides to split their workweek evenly between baking brownies and baking toffee bars. That is each worker will spend 20 hours baking brownies and 20 hours baking toffee bars. Fill the table below to show each baker’s output of the two products and the total output between them.

C) Assume that the two bakers decide to specialize (by spending every hour of the work week baking either brownies or toffee bars). Who must bake only brownies and who must bake only toffee bars? To receive credit, you should show your work justifying your answer.

problem 4: The market demand and supply curves for Tulenwa Beer are given by the following equations:

Qd = 60 - 3P (market demand curve)
Qs = 3P (market supply curve)

a) Graph the demand and supply curves altogether in one graph. In your graph be sure to label the axes and the curves. Clearly point out where the demand curve crosses the axes (find out the X and Y intercepts).

b) Compute the equilibrium price and quantity algebraically.

c) Compute the consumer surplus, producer surplus and total surplus for Tulenwa Beer.

d) Assume that the equation for the supply curve changes to Qs = 3P - 30. Does this new supply curve point out an increase or decrease in the supply curve? Recommend two possible descriptions for the indicated change in the supply curve.

problem 5: One firm has the whole market for Halloween masks that look like Richard Nixon.  It generates at average and marginal costs of AC = MC = 10. Originally, the firm faces a market demand curve of Q = 60 - P.

a) Compute the profit-maximizing price and quantity combination for the firm. What are the firm’s profits?

b) Suppose that the market demand curve becomes steeper and is given by Q = 45 - 0.5 P. Determine the firm’s profit-maximizing price and quantity now? Determine the firm’s profits?

c) State the market demand curve becomes flatter and is given by Q =100 - 2P. Determine the firm’s profit-maximizing price-quantity now?

d) Graph the three different situations and describe why there is no supply curve for a monopoly.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M96642

Have any Question? 

Related Questions in Microeconomics

1 a explain in clear language the economic inefficiency

1. a) Explain in clear language the economic inefficiency associated with adverse selection. b) The ACA (aka Obamacare) included an insurance mandate, which forces everyone to purchase insurance or face a penalty. Under ...

The economy is full employment now the government wants to

The economy is full employment. Now the government wants to change the composition of demand toward investment and away from consumption without, however, allowing aggregate demand to beyond full employment. What is requ ...

Assignmentyou will submit your second comprehensive summary

Assignment You will submit your second comprehensive summary (4-5 pages) regarding your final progress report. If you are still in your original business, what lessons did you learn? If not, what went wrong? What improve ...

Assignmentwrite a 5-6 page paper on one of the following

Assignment Write a 5-6 page paper on ONE of the following topics. Advice: Read the question you choose very carefully, and make sure you are answering it. What you write must be clearly relevant to answering the question ...

Desserts by jb case studyjay brown jb to his friends is a

Desserts by J.B Case Study Jay Brown (J.B. to his friends) is a student at the North-west Culinary Institute and specializes in preparing elab-orate desserts. After graduation. J.B. wants to open up a bakery. The bakery. ...

Discussion questionplease read thoroughly and provide

Discussion Question Please read thoroughly and provide references • Manufactures of smartphones design products to be interactive with consumers. To remain competitive, designers are focused on getting a new product to m ...

Question 1the document that lists and details the contents

Question 1 The document that lists and details the contents and conditions of a shipment is called: A. The Tariff B. Proof of Delivery C. The Invoice D. The Bill of Lading Question 2 Declining transport rates as the quan ...

Assignmentxyz company enters into a contract with mary to

Assignment XYZ Company enters into a contract with Mary to landscape Ben's yard, using None Nursery to supply trees and buses. Kate owns the lot next to Ben's property. The landscaping is a gift from Mary to Ben, who is ...

Economics and quantitative analysis assignmenttopic -

ECONOMICS AND QUANTITATIVE ANALYSIS ASSIGNMENT TOPIC - REGRESSION ANALYSIS Instructions - Background One of the biggest challenges in the higher education sector has been the recent growth of online universities. The Onl ...

Assignment maximizing profits and minimizing lossesconsider

Assignment: Maximizing Profits and Minimizing Losses Consider a supplier of agricultural equipment who is deciding how much of two products should be produced by his firm. You determine what the two products are. Now cre ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen