Economics of Enterprise Answers

What is supply curve

If a company increases its workforce from 10 to 17 workers and as a result the total output changes from 30 units to 44 units, what is the marginal product for the increased workers?

Suppose market demand is given Q_d=a-bp as and market supply is given as, Q_s=c+dp and then find the following

o  Equilibrium price

o  Equilibrium quantity

o  Price elasticity of demand at equilibrium

o  Price elasticity of supply at equilibrium 

Suppose market demand is given Qd=a-bp as and market supply is given as, Qs=c+dp and then find the following

o Equilibrium price

o Equilibrium quantity

o Price elasticity of demand at equilibrium

o Price elasticity of supply at equilibrium

Suppose market demand is given Qd=a-bp as and market supply is given as, Qs=c+dp and then find the following

o Equilibrium price

o Equilibrium quantity

o Price elasticity of demand at equilibrium

o Price elasticity of supply at equilibrium

What is Economics

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 Q^d = 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).

1.     Suppose market demand is given Q_d=a-bp as and market supply is given as, Q_s=c+dp and then find the following

o  Equilibrium price

o  Equilibrium quantity

o  Price elasticity of demand at equilibrium

o  Price elasticity of supply at equilibrium 

how do we find total cost when we have only total benefit data available