The following table provides cost and price information for an individual firm. The first
two columns represent the demand curve that the firm faces. The firm has a fixed amount
of capital equipment, but can change the level of other inputs such as labour and materials.
Calculate the missing values in the table, and use the table to answer.
(Make sure you answer each question using the production level specified.)
When production equals 6 units, the firm’s marginal revenue is:
The following table provides cost and price information for an individual firm. The first
two columns represent the demand curve that the firm faces. The firm has a fixed amount
of capital equipment, but can change the level of other inputs such as labour and materials.
Calculate the missing values in the table, and use the table to answer.
(Make sure you answer each question using the production level specified.)
When production equals 5 units, the firm’s total revenue is:
The following table provides cost and price information for an individual firm. The first
two columns represent the demand curve that the firm faces. The firm has a fixed amount
of capital equipment, but can change the level of other inputs such as labour and materials.
Calculate the missing values in the table, and use the table to answer.
(Make sure you answer each question using the production level specified.)
When production equals 4 units, the firm’s:
Question is based on the demand and supply diagrams in Figure 1. D1 and S1 are the original demand and supply curves. D2,D3,S2 and S3 are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is
most likely to result from each change?
An increase in demand and an increase in supply will:
Question is based on the demand and supply diagrams in Figure 1. D1 and S1 are the original demand and supply curves. D2,D3,S2 and S3 are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is
most likely to result from each change?
A government research agency has published outcome of studies which say that the
consumption of good X could cause cancer. In addition, assume that a powerful lobby has
persuaded the government to give subsidy to the manufacturers of good X. What point
in Figure is most likely to be the new equilibrium price and quantity?
Question is based on the demand and supply diagrams in Figure 1. D1 and S1 are the original demand and supply curves. D2,D3,S2 and S3 are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is
most likely to result from each change?
Assume that the government has just removed the 10% excise duty on good X. What point
in Figure 1 is most likely to be the new equilibrium price and quantity?
Question is based on the demand and supply diagrams in Figure 1. D1 and S1 are the original demand and supply curves. D2,D3,S2 and S3 are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is
most likely to result from each change?
Assume that consumer income has increased. Given that Y is an inferior good, which point
in Figure is most likely to be the new equilibrium price and quantity?
Question is based on the demand and supply diagrams in Figure 1. D1 and S1 are the original demand and supply curves. D2,D3,S2 and S3 are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is
most likely to result from each change?
Suppose wage rate of coal miners increases and price of natural gas decreases. (Coal
and natural gas are substitutes).What point in Figure 1 is most likely to be the new
equilibrium price and quantity?