Other Economics Answers

3. A cloth producing firm in a perfectly competitive market has the following short-run total cost function: TC = 6000 + 400Q – 20Q2 + Q3 . If the prevailing market price is birr 250 per unit of cloth,

A) Should the firm produce at this price in the short-run?

B) If the market price is birr 300 per unit, what will be the profit (loss) of the firm at equilibrium? Should the firm continue to produce or not?

C) Calculate the shut-down price of this firm?

4. Assume a wheat producing farmer engaging in selling its product under perfect competition market faces cost functions as TC= Q3 -2Q2 +8Q and Average revenue of the farmer is given as Birr 8 . Having this information,

A) Determine the optimal level of output and price in the short run.

B) Calculate the economic profit (loss) the farmer will obtain (incur)

C) What will be the minimum price level the farmer gets to continue in wheat production?

1. Davit plans to consume two goods (good x and good y) with a limited budget. If Davit's budget line has intercepts 100 units of good x and 50 units of good y and price of good x (Px) is $100. Then, answer the next three questions.

A) What are Davit's income and Price of good y (Py)

B) What is the simplified version of Davit's budget line equation?

C) If Davit's utility function is given by U(X; Y) = X0.5Y 0.5, how many units of good X and good Y would he consume if he choose the bundle that maximizes his utility subject to his budget constraint?

2. Consider the following total cost function: TC = 2/3Q3 – 10Q2 + 200Q + 50

A) Identify the FC and VC function?

B) Calculate AVC, AFC, ATC, and MC functions

C) Determine the level of output at which AVC reaches minimum point and the minimum AVC at that level of output?

7. Assume Amanda always maximizes her total utility given her budget constraint. Every morning for breakfast she has four eggs and two sausages. If the marginal utility of the last egg is 10 units and the price of eggs is $2 each, what can we say about the marginal utility of the last sausage if the price of each sausage is $2?

A. It must be equal to 10 units.

B. It must be equal to 5 units.

C. It must be equal to 1 unit.

D. It must be equal to 20 units.

. Discuss the issues and challenges faced with regard to implementation to the Right to Education. 

A consumer spends all her income of £120 on the two goods A and B. Good A costs £10 a unit and good B costs £15. Set up a constrained optimization problem to find the combination of A and B that the consumer purchase to maximize utility where the utility function is 𝑈 = 4𝐴0.5𝐵0.5 ?

In your opinion, how can demand forecasting help cab service providers such as Uber and Ola?

In Rwanda local farmers manage small plots of land for subsistence farming. However, some have benefited by selling pineapples at an agreed fixed price to an exporter. The exporter provides finances, training, fertilizers and machinery and even building materials for the farmer’s homes. Explain the benefits which may be gained by the local community in Rwanda from the project.

If malaysia were to stop trading goods and services with other countries, which malaysia industries would be likely to see their sales decline the most? Briefly explain.

If malaysia were to stop trading goods and services with other countries, which malaysia industries would be likely to see their sales decline the most? Briefly explain.

Given the demand and supply equations,

Qdx = 150 - 20Px and Qsx=-30+50Px, Find a) Equilibrium price; b) if market price is Rs3.50, what will be amount of surplus units?

Plz i want a proper solution 🙏