What economic factor explain the marginal product and average product of labour curve
What economic factor explain the marginal product and average product of labour curve
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Consider a market for energy drinks consisting of only one firm. The firm has a linear cost function: C(q)=4q, where q represents quantity produced by the firm. The market inverse demand function is given byr P(Q)=24-2Q, where Q represents total industry output. Based on the given information answer the following. 1. What price will the firm charge? What quantity of energy drinks will the firm sell? 2. Now suppose a second firm enters the market. The second firm has an identical cost function. What will be the Cournot equilibrium output for each firm? 3. Whay is the Stackelberg equilibrium output for each firm of firm 2 enters second? 4. How much profit will each firm make in yhe Cournot game? How much in Stackelberg? 5. Which type of market do consumers prefer: monopoly, Cournot duopoly or Stackelberg duopoly?
Consider a market for energy drinks consisting of only one firm. The
firm has a linear cost function: C(q)=4q, where q represents quantity
produced by the firm. The market inverse demand function is given byr
P(Q)=24-2Q, where Q represents total industry output. Based on the
given information answer the following.
1. What price will the firm charge? What quantity of energy drinks
will the firm sell?
2. Now suppose a second firm enters the market. The second firm has an
identical cost function. What will be the Cournot equilibrium output
for each firm?
3. Whay is the Stackelberg equilibrium output for each firm of firm 2
enters second?
4. How much profit will each firm make in yhe Cournot game? How much
in Stackelberg?
5. Which type of market do consumers prefer: monopoly, Cournot duopoly
or Stackelberg duopoly?
Suppose that the quantity of corn supplied depends on the price of corn (_P_) and the amount of rainfall (_R_). The demand for corn depends on the price of corn and the level of disposable income (_I_). The equations describing the supply and demand relationships are _Q__s__ _= 20_R _+ 100_P _and _Q__d__ _= 4000 − 100_P _+ 10_I_. a) Sketch a graph of demand and supply curves. b) Sketch a graph that shows the effect of an _increase _in rainfall on the equilibrium price and quantity of corn. c) Sketch a graph of demand and supply curves that shows the effect of a _decrease _in disposable income on the equilibrium price and quantity of corn.
Suppose that the quantity of corn supplied depends on the price of
corn (_P_) and the amount of rainfall (_R_). The demand for corn
depends on the price of corn and the level of disposable income (_I_).
The equations describing the supply and demand relationships are
_Q__s__ _= 20_R _+ 100_P _and _Q__d__ _= 4000 − 100_P _+ 10_I_.
a) Sketch a graph of demand and supply curves.
b) Sketch a graph that shows the effect of an _increase _in
rainfall on the equilibrium price and quantity of corn.
c) Sketch a graph of demand and supply curves that shows the effect of
a _decrease _in disposable income on the equilibrium price and
quantity of corn.
Justin has the utility function _U _= _xy_, with the marginal utilities _MUx _= _y _and _MUy _= _x_. The price of _x _is $2, the price of _y _is _p__y_, and his income is 40. When he maximizes utility subject to his budget constraint, he purchases 5 units of _y_. (a) What must be the price of _y _and the amount of _x _consumed? (b) Prove that this allocation follows the equi-marginal principle. (c) What would be the new bundles of x, y if Px was $3
Justin has the utility function _U _= _xy_, with the marginal
utilities _MUx _= _y _and _MUy _= _x_. The price of _x _is $2, the
price of _y _is _p__y_, and his income is 40. When he maximizes
utility subject to his budget constraint, he purchases 5 units of _y_.
(a) What must be the price of _y _and the amount of _x _consumed?
(b) Prove that this allocation follows the equi-marginal principle.
(c) What would be the new bundles of x, y if Px was $3
Terry’s utility function over leisure (_L_) and other goods (_Y)_ is _U_ (_L_, _Y)_ = _Y _+ _LY_. The associated marginal utilities are _MU__Y__ _= 1 + _L _and _MU__L__ _= _Y_. He purchases other goods at a price of $1, out of the income he earns from working. Show that, no matter what Terry’s wage rate, the optimal number of hours of leisure that he consumes is always the same. (a) What is the number of hours he would like to have for leisure? (b) Determine the MRS of leisure for labour (c) Draw a leisure-influenced labor curve
Terry’s utility function over leisure (_L_) and other goods (_Y)_ is
_U_ (_L_, _Y)_ = _Y _+ _LY_. The associated marginal utilities are
_MU__Y__ _= 1 + _L _and _MU__L__ _= _Y_. He purchases other goods at a
price of $1, out of the income he earns from working. Show that, no
matter what Terry’s wage rate, the optimal number of hours of
leisure that he consumes is always the same.
(a) What is the number of hours he would like to have for leisure?
(b) Determine the MRS of leisure for labour
(c) Draw a leisure-influenced labor curve
State whether the Statement is TRUE or FALSE. Also write the reason (Without reason your answer will not accepted) a) If value of cross price elasticity is positive then it means there are less close substitutes are available of that product. b) In case of luxury products, the own price elasticity of demand is greater than one. c) If salaries of journalist go up then demand curve of newspaper will shift upward. d) When price elasticity of supply is greater than one it means supply curve is flatter.
State whether the Statement is TRUE or FALSE. Also write the reason
(Without reason your answer will not accepted)
a) If value of cross price elasticity is positive then it
means there are less close substitutes are available of that product.
b) In case of luxury products, the own price elasticity of
demand is greater than one.
c) If salaries of journalist go up then demand curve of
newspaper will shift upward.
d) When price elasticity of supply is greater than one it means
supply curve is flatter.
Consumer buys 10 units of Good A when the price of Good B is $5. When the price of Good B rises to $6 (the price of Good A remaining unchanged) the consumer buys 14 units of Good A. PART A Using an appropriate formula, calculate this Consumer’s cross Elasticity of demand for Good A. Show your working.
Consumer buys 10 units of Good A when the price of Good B is $5. When
the price of Good B rises to $6 (the price of Good A remaining
unchanged) the consumer buys 14 units of Good A.
PART
A
Using an appropriate formula, calculate this Consumer’s cross
Elasticity of demand for Good A. Show your working.
Consumer buys 10 units of Good A when the price of Good B is $5. When the price of Good B rises to $6 (the price of Good A remaining unchanged) the consumer buys 14 units of Good A. Part A (6 MARKS) Using an appropriate formula, calculate this Consumer’s cross Elasticity of demand for Good A. Show your working. Part B (4 MARKS) Is Good A, a substitute for, or a complement to, Good B? Explain your reasoning
Consumer buys 10 units of Good A when the price of Good B is $5. When the price of Good B rises to $6 (the price of Good A remaining unchanged) the consumer buys 14 units of Good A.
Part A (6 MARKS)
Using an appropriate formula, calculate this Consumer’s cross Elasticity of demand for Good A. Show your working.
Part B (4 MARKS)
Is Good A, a substitute for, or a complement to, Good B? Explain your reasoning
There is a market of computer i.e. there is some demand and supply of computer. Shown in a diagram the effect on the demand and supply curve, the equilibrium price and the equilibrium quantity if “THE SALARIES OF ELECTRONIC TECHNICIAN GO UP”.
There is a market of computer i.e. there is some demand and supply of computer. Shown in a diagram the effect on the demand and supply curve, the equilibrium price and the equilibrium quantity if “THE SALARIES OF ELECTRONIC TECHNICIAN GO UP”.
If value of cross price elasticity is positive then it means there are less close substitutes are available of that product
If value of cross price elasticity is positive then it means there are
less close substitutes are available of that product
WE ACCEPT
