2. Consider the cost function 3 e (w), wa, q) = šu w The firm uses two inputs z1 and z2 with input prices wi and w2 respectively. Find the conditional factor demand functions, z (w1, w2, q).
Q: When evaluating the viability of a project, the test of economic efficiency requires that:
A: There ware various ways, techniques and methods to evaluate any projects. It involves but is not…
Q: X17. Figure: Monopoly Profits 1 $16.50 Marginal cost Average cost 6. ND 40 80 100 Marginal revenue…
A: Answer: A monopolist maximizes its profit where the MR and MC curves intersect each other. The…
Q: D Question 27 Your grandmother says that things are lot better now for the average worker compared…
A: To find the best and the worst decades we find the a ratio which indicates percentage change in CPI…
Q: 1. Suppose a worker can survive by daily consumption of $40 value of commodities as determined by…
A: Karl Marx, like other classical economists, had a belief that in the labor theory of value can…
Q: During the economic crisis of the 1970s, the economy was suffering from high levels of inflation.…
A: Monetary policy the Government or central bank used to settle down the Inflation and Recession in…
Q: Using the numbers representing short run costs in the chart below, calculate the number that belongs…
A: We have blank for MC at q=5.
Q: An adverse weather condition can change the supply of a product.” It can be represented as a: a.…
A: Supply curve shows different combinations of quantity supplied and prices
Q: The law of diminishing returns happens when each additional unit of a variable input results in a…
A: The law of diminishing returns is also known as law of variable proportion. It is applicable on…
Q: Which of the following is consistent with the law of demand? A. A decrease in the price of…
A: In general, people buy more of goods and services when price is low and when price is high then…
Q: A bulldozer was bought for ₱ 0.50M and have an estimated useful life of 10 years after which it will…
A: A capitalized cost is an price delivered to the value foundation of a set asset on a company's…
Q: Pop's Com Popcorn shop normally sells 100 bags a day when the price is S6 per bag. On half-price…
A: Given: The quantity one for bags per day is = 100 bags The price is = $6 per bag The price now…
Q: 4. 1. What has Government spending done to help the GDP during the covid Pandemic era? 2. What…
A: Answer 1. Automatic stabilisers and pandemic-related tax and expenditure measures, as well as fiscal…
Q: a) State and explain Arrow’s Impossibility Theorem and its implications for social choice.
A:
Q: Explain the international stage in four stages of globalization and give some examples.
A: international Stage-These type of business crosses the restricted limit of the nation and increments…
Q: A local baker owns a small shop in a very busy downtown section that the baker uses to bake loaves…
A: In economics, operating cost is the expenditure incurred on daily basis as it is the ongoing cost of…
Q: 1. Given the following information: U= (1/3)X^Y*; Px= 6; Py= 6; I = 2,430, a. calculate the effect…
A: Utility function : U = (1/3) X1/2 Y4 Px = 6 , Py = 6 Income = 2430 Budget Constraint : 6X + 6Y =…
Q: If the Federal Reserve decides to sell bonds, what effect with it have? It will cause the…
A: Individual fear and greed are common causes of volatility in open markets when left to their own…
Q: In the standard AS-AD framework, after a positive one-period O for all times T > t), the inflation…
A: Inflation refers as a rise in the overall level of prices.It occurs when the value of money falls.In…
Q: 1. Suppose a worker can survive by daily consumption of $40 value of commodities as determined by…
A: Dear learner you have posted multiple questions, as per our policy we have solved only first…
Q: State the implications of the weak axiom of revealed preference (WARP) for consumer choice. The…
A: Given information Weak axiom of reveled preference theory state that when consumer give preference…
Q: year for repairs, adjustments, and shutdowns. A new mac omplish the functions desired and has an…
A: *Answer: Solution : Old Machine New Machine Cost 2,000…
Q: lon. On the day that both franchises opened for business, each owner was observed changing the price…
A: Q=120-5P Or, P=1/5(120-Q) Marginal cost =$3
Q: 7. Fill in the blanks below: Initial Initial Маximum MPC Change Amount Change DYoulube OPEN ENDED…
A: Income has an impact on the marginal propensity to consume, or MPC. The MPC may vary based on income…
Q: State the implications of the weak axiom of revealed preference (WARP) for consumer choice. The…
A: This axiom states that given incomes and prices, if one product or service is purchased instead of…
Q: 1. Assume a neo-classical aggregate supply model with both long run and short run aggregate supply…
A: * SOLUTION :- Aggregate demand is defined as the total demand of all final commodities and…
Q: Your company is competing in a sealed-bid auction for a package of items your company values at…
A: Uniform distribution is defined as the type of probability distribution where all the outcomes are…
Q: Identify four major crude oil traders in the world and the percentage of the market share.
A: Oil corporations deliver billions of barrels of oil products daily to fuel transportation and…
Q: A] Measurement error in the dependent variable leads to biased OLS estimates? a-Yes, always b No,…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: When population growth and depreciation are non-zero, what is the Solow equation: a. Δk = sf(k) -…
A: According to the Solow model, saving and investment are the key components of economic growth. A…
Q: Refusing to pay taxes because you disapprove of how the money is being used by the government is an…
A: Taxes are described as a legal payment made by citizens of a country to the government that is…
Q: How the 3'S of opportunity spotting applied or useful to you? How is the focus group discussion…
A: In the simplest terms, business development is also summarized because the concepts, initiatives,…
Q: Explain why perfect competition is not compatible with firms having increasing returns to scale…
A: In perfect competition there ate large numbers of buyers and sellers in the market and exchange…
Q: Which of the following statements is TRUE?
A: The value of spending multiplier is dependent on MPC and as well as MPS
Q: According to the IMF, what are the economic growth projections for 2017 and 2018?
A: IMF is a world-renowned financial institution which has a total of 190 countries as its members. It…
Q: Explain the effects of an increase in G using IS-LM and AS-AD curves. Explain the crowding out…
A: When there is an increment in government expenditure then IS curve shifts in the rightward…
Q: - ā - 6(R – F), where b = 2, ī = 1/5, and R4 - 7 = 0.01. 1-a Consider the IS curve Yt = If there is…
A:
Q: ) Using IS-LM, AS-AD and labor market curves, explain a recession caused by a decrease in investment…
A: The IS curve is the curve that shows the negative relationship between the interest rate and…
Q: Hi, I need help solving this Macroeconomics question. For the graph (demand line) adjustment…
A: The labor demand curve shows the inverse relationship between the wage rate and the quantity…
Q: À minimum wage set abc A. increases both en O B. increases unemp O C. decreases unem O D. raises the…
A: Labor supply is positively related to the wage rate. An increase in the wage rate will increase the…
Q: 2) A firm has a project with no investment requirement, but it must raze existing buildings over a…
A: An investment's return on investment (RoI) is computed as a percentage of the investment's initial…
Q: 7. What is the cost in real dollars today of spending $25,000 four years from now if your effective…
A: Total Spending = 25,000 n = 4 inflation = 7% MARR = 3%
Q: QUESTION 10 According to OECD data (see the link below), the income inequality as measured by the…
A: In a given year, income is defined as household disposable income. It is made up of earnings,…
Q: Consider the following hypothetical firm that is normally producing 200 units of the product per…
A: Variable costs are costs that extrade because the extent changes. Examples of variable costs are…
Q: Price Level Prices for plastic, a key input in many industries, have decreased due to new technology…
A: Aggregate demand is a macroeconomic term that refers to the total demand for goods and services over…
Q: 2. Consider a competitive price system (p-3, pz-4) in a two-good economy. The preferences of…
A: We have given price of goods and endowments of both the goods.
Q: 8. For a certain potential investment project, we have the following estimates: Capital investment I…
A: Given information Initial capital=$100000 Annual revenue=$30000 Annual expenses=$9000 Market…
Q: When interest rates increase in the United States O there is a tendency for the value of the dollar…
A: Interest rate is.the rate at which monetary instruments are exchanged in the market.
Q: State whether each of the statements is TRUE or FALSE, and with one or more sentences and (if…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Use the following information about a perfectly competitive (PC) firm to determine which quantity…
A: There are large number of firms selling identical goods in perfectly competitive market. This makes…
Q: 50 II 40 30 IV 20 10 10 20 30 40 50 Number of Turkeys Number of Chickens
A: Opportunity cost refers to the cost associated with the trade-off between two goods or services when…
Step by step
Solved in 2 steps with 1 images
- A firm has a linear demand function for its product. When the price of the product isSh.220, the quantity demanded is 40 units. When the price increases to Sh.240, thequantity demanded becomes 30 units. In addition, the firm’s marginal cost function isgiven by:MC = 40q – 2q2 + 2Fixed cost = Sh.5 millionWhere q = quantity demanded, MC = marginal cost (Sh. million)Evaluate the level of output that maximizes profits.1. Suppose that the production function for a firm is given by the CES function q = f (z1, z2) = (z + z)/Y. Where z1 and z2 are the two inputs used by the firm. The inputs prices are respectively wi and w2 a. Set up the cost minimizing problem of the firm and derive the first order conditions for cost minimization b. Derive the conditional inputs demand functions for inputs 1 and 2 c. Derive the associated cost function for the firm1 A smartphone repair firm in Boston has a production function for producing phone repairs, q, defined as, — 4 -L1/2K 1/2, where L is labor measured in hours worked, and K is the number of useful tools used in the repair process. The market wage for a phone repairperson, w, is $25 per hour. The tools could be sold at a secondhand market for $4 (r). Find the (variable) cost function:. Submit your answers as a single PDF. Please try and keep solutions tidy.
- (a) Find the conditional input demand function for inputs 1 and 2, as well as the cost function for this firm. (b) What is the firm's marginal cost when it is producing y units of output?If a firm has the production function f(k, I) = (2k1/4 + 14)" what is the firm's elasticity of substitution? O a. G = O b. o = O c. o = 1 O d. a = 2 O e. o = 4 114 -/21. Find the cost minimizing input demand functions (x¿(w,q)) and the cost function (c(w,q)) for the following production functions: 1/3 21382 a. f(x) = x₁
- b Now suppose Q = 2L +3K. Let the market price of L be w = 5 and the price of K be r = 4. Let both L and K can vary with production. Compute the input demand functions as a function of Q. (4 Points) c Calculate the marginal cost and average cost of the above function in subpart (b). Show them graphically. At what prices of textile will the producer shut down production. (3 Points) d Now suppose Q = 10LK. The market prices of inputs are as in subpart (b) above. Compute the input demand functions as a function of Q. Find the optimal production when the price of textile is $10 per yarn. (5 Points)A competitive, profit-maximizing firm uses two inputs labor (L) and capital (K). Its production function is given by f (L, K) = 3L2 + 7K 2. Its output sells for $4 per unit. The price of labor is $6 per hour. The price of output rises to $8 per unit but factor prices do not change. (a) It will increase its hiring of labor by 4 hours. (b) It will increase its hiring of labor by 2 hours. (c) We need to know the price of capital to be able to determine the change in demand for labor. (d) It will increase its hiring of labor by 3 hours. (e) None of the above.The manager of Don Teeta Company Limited hires labour (L) and rents capital equipment (K) ina very competitive market. Currently, the wage rate of labour is GH¢2 per hour and capital isrented at GH¢5 per hour, the unit price of the product is GH¢0.75 and total cost of production isGH¢1,000. Suppose the firm’s production function (Q) is as follows:? = 14?0.5?0.5 + 10Determine the optimal input usage and the maximum profit.
- 1. Let input prices be (wK, WL) and output price be p. The production function is given by f (K, L) = min [√K, L]. (b) Derive the cost function. Use the cost function to derive the output supply function.1. A firm’s production function is , where Ldenotes the size of the workforce. Find the value of MPLin the case when: (a) L=1, (b) L=10, (c) L=100, (d) L=1000 Does the law of diminishing marginal productivity apply to this particular function? 2. Show that the price elasticity of demand is constant for demand functions of the form where A and n are positive constants. 3. The demand and total cost functions of a good arerespectively and a) Find expressions for TR, (profit) , MR, and MC in terms of Q. b) Solve the equation and hence determine the value of Q which maximizes profit. c) Verify that, at the point of maximum profit, MR=MC. 4. The cost of building an office complex, x floors high, in a prime location in Accra is made up of three components: (a) GH¢10 million for the land (b) GH¢1/4 million per floor (c) Specialized costs of GH¢10000x per floor. How many floors should the office complex contain if the average cost per floor is to be minimized? 5. The supply…1. Let a firm’s cost function be c(y1, y2) = F + αy1y2 + y21 + y22, where α is some constant.a) What restriction on α is required to guarantee that this cost function exhibits economies ofscope?b) What restriction on α is required to guarantee that this cost function exhibits cost complementarities in both goods? Note that you’ll need to verify cost complementarities for y1 andy2.2. Given the industry demand function X(p) = 100 − 2p, consider the following scenarios:• The market is a perfectly competitive market. Assume there are identical firms with marginalcost of 12 in this perfectly competitive market.• The market is dominated by one monopolist with a marginal cost of 12. This monopolist isable to achieve 1st degree pricing.• The market is dominated by one monopolist with a marginal cost of 12, but the monopolistis able to achieve only 2nd degree pricing. Assume the menu offers only 2 choices:(Q∗1 = 30, p∗1 = 35), and (Q∗2 = 60, p∗2 = 20).• The market is dominated by one monopolist…