336 Answered Questions for the topic microeconomics
Interest Rates US - Last FED Decision - Questions
Dear all,The last rate hike was a 75 BPS and we saw after the news came out that the dollar weaken, Gold had a pullback and US 30 has a bearish move.Usually in long term should the Dollar not... more
Suppose that the total monthly cost of manufacturing is TC = 15,000 – 50Q + 0.5Q2
Suppose that the total monthly cost of manufacturing is TC = 15,000 – 50Q + 0.5Q2 Determine the total marginal cost equation and the average cost equation. Determine the level of production... more
A firm faces demand given by the demand function 𝑃 = −4𝑄 + 220 and the firm’s total costs are modelled by 𝑇𝐶 = 4𝑄*2+ 20Q − 12 .
A firm faces demand given by the demand function 𝑃 = −4𝑄 + 220 and the firm’s total costs are modelled by 𝑇𝐶 = 4𝑄2+ 20Q − 12 . a)What is the firm’s average cost function? b)What is the firm’s total... more
The demand for wheat is price-inelastic and the income elasticity is positive but less than +1.0. Use this information to answer the following questions.
The demand for wheat is price-inelastic and the income elasticity is positive but less than +1.0. Use this information to answer the following questions. A) Holding everything else constant, if the... more
Calculate level of utility after a per unit sales (sin) tax
Given this information:F=foodB=beerU(F,B)=0.001F2B3Currently, the price of the food is 10, and the price of beer is 20. What would the level of utility be if the government adopted a per unit sales... more
As we move down along a linear demand curve (a demand curve that is a straight line with a given negative slope) what happens to |Ed|?
As we move down along a linear demand curve (a demand curve that is a straight line with a given negative slope) what happens to |Ed|? a) The price elasticity of demand increases b) The price... more
True or False? Why?
State whether the following statements is TRUE OR FALSE. The market demand schedule shows how quantity demanded will change when the price changes. An explosion which destroys a fireworks factory... more
Buyer, Seller, or Both?
For each of the following markets, say whether the person participates as a buyer, seller or both a. A family eating at a restaurant b. A person getting a haircut c. A cook... more
Draw and label a graph that depicts a downward-sloping demand curve and an upward-sloping supply curve in the market for corn...
(Read the article: Soybean Prices Surge as South American Outlook Deteriorates)Draw and label a graph that depicts a downward-sloping demand curve and an upward-sloping supply curve in the market... more
Using the model of production and costs, explain how firms that earn negative profit (net loss) are still able to maximize their profits. Is a negative profit contrary to profit maximization
If only salary increases by 20%, purchasing Power will also increase by 20%. However, if inflation increases prices by 20%, Purchasing Power does not decrease by 10%, but by 16.6…% (given that... more
game theory at a high school level, tysm to whomever helps me!!
Peter, while studying game theory, came across a game where a couple of rational agents find a machine that delivers three coins to one of them when the other deposits a coin into it. So each agent... more
please help me with this
Suppose a monopolist produces in a market with two distinct segments: market 1, which is denoted as M1 on the graph, and market 2, denoted as M2. The firm's marginal and average costs are $20.a.... more
cool question about interest rates
Rob has the opportunity to invest in two different Project Finance projects. The first project is a railroad that will pay monthly interest of $100.00 for 3 years, with a one-year grace period... more
percentages - price increase of products
A merchant sells a box of goods for $100.00. If he raises all the prices of the products in the box by 20%, what happens to the total value of the box?a) Remains the sameb) Increases 20%c)... more
Basic math question about compounded interest
Bank A provides a curious financial instrument: a savings account that yields a complex interest rate r = -1 + 2i per year (where i is the imaginary unit, satisfying i² = -1). John deposited U$1 in... more
dale likes to consume both sweatshirts and jackets. the price of a sweatshirt is $15, while the price of a jacket is $60. if dale 's marginal benefit of another sweatshirt is $60, what must be the... more
The demand and supply schedules for chewing gum are:
Price Quantity demanded Quantity supplied (dollar per pack) (millions of packs a week) (millions of packs a week) ... more
A natural monopoly arises because [….].
A natural monopoly arises because [….]. some firms are able to innovate some firms practice predatory pricing some goods are extremely expensive to produce some goods are extremely cheap to produce
A natural monopoly can be made more efficient through [....].
market intervention firm exit firm entry none of the above
Most businesses in the U.S. exist in […] markets, while most of the money Americans spend is on goods from […] markets.
monopolistic; perfectly competitive oligopolistic; monopolistically competitive perfectly competitive; monopolistic monopolistically competitive; oligopolistic
Demand and supply curve
Decrease in price of green pepper following entry of imported green pepper
You won a free ticket to see an Eric Clapton concert (which has no resale value). Bob Dylan is performing on the same night and is your most attractive alternative. Tickets to see Dylan cost $40,... more
AP microeconomics question (can someone explain the answer please? thanks!)
To maximize profit, a firm should produce the quantity at which marginal revenue equals marginal cost unless, in the long run, the firm woulda) earn positive accounting profit.b) earn positive... more