Explain five features of a good economic model

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Explain five features of a good economic model

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The monopolistic competitor faces a demand curve given by q(p)=50-5p.its cost function is c(y)=4y .what is it's optimal level of output and price
Given the demand function P = 20 – 5Q, find the price elasticity of demand when price of the commodity is 5 Birr per unit. Mention if the demand is price elastic or inelastic at this point
Suppose widgets have a price elasticiy of demand equal to -1.95 and a cross elasticity of demand equal to 2 with dundles. What are the pricing options for a firm that sells widgets? Explain. (b) If the quantity demand for apples is given by: _Q__D _= 300 − 2_._55_p__A _+ 7_._62_p__B _+ 0_._75_Y _ if _p__A _= 90 cents, _p__B _= 50_cents _and _Q__D _= 860. Calculate and interpret the income elasticity of demand for apples.
Elasticity of supply will decrease when?
Give the table below Labor total product Average Product Marginal (TP) (AP) Product(MP) 0 0 1 10 2 25 3 45 4 60 5 70 6 70 7 60 8 44 Required 1. Complete the table above by computing AP and MP. 2. Plot in one graph TP, AP and MP. Label graph completely . 3. Indicate the stage of production with its corresponding boundaries.
Mahesh wants to start his business and for that he decides that he will take loan for Rupees 7 Lakhs from the Bank of Baroda. He also decides to use his saving worth 3 lakhs in the bank account to start the business. Discuss how these two transactions will be recorded in the books of accounts by passing the relevant journal entries? How these transactions will be reflected in the Books of accounts (that’ is in the financial statements)? Lastly, conclude your answer by stating the applicability of which accounting assumption/s you did the above mentioned accounting treatment/ recognition and presentation in the books of accounts
Which of the following properly describes the interest-rate effect? a. A higher price level leads to higher money demand, higher money demand leads to higher interest rates, and a higher interest rate increases the quantity of goods and services demanded. b. A higher price level leads to higher money demand, higher money demand leads to lower interest rates, and a lower interest rate reduces the quantity of goods and services demanded. c. A lower price level leads to lower money demand, lower money demand leads to lower interest rates, and a lower interest rate reduces the quantity of goods and services demanded. d. A lower price level leads to lower money demand, lower money demand leads to lower interest rates, and a lower interest rate increases the quantity of goods and services demanded.
As long as all prices remain constant, an increase in money income results in (A) an increase in the slope of the budget line. (B) a decrease in the slope of the budget line. (C) an increase in the intercept of the budget line. (D) a decrease in the intercept of the budget line.