Q1)The following total utility schedule of two goods A and B are given as follows. Price of good A is $5 and price of good B is $4 and budget is $30. Find the consumer equilibrium TUa TUb 1 400 800 2 320 640 3 260 530 4 220 | 460 5 200 396 Q2)Briefly explain the following. a) Sunk cost. b) Avoidable cost. c) Marginal cost. Q3) Draw the diagrams of total cost curves and short run average cost curves Q4) The demand function is given as follows: Qd-250000- 50ОР — 1.5M — 240Pх P= 200 TL, M= 60000 TL, Px = 100 TL. a) Find Qd b) Find price elasticity of demand. Interpret your result c) Find income elasticity of demand. Interpret your result d) Find cross price elasticity. Interpret your result

Q1)The following total utility schedule of two goods A and B are given as follows. Price of good A is $5 and price of good B is $4 and budget is $30. Find the consumer equilibrium TUa TUb 1 400 800 2 320 640 3 260 530 4 220 | 460 5 200 396 Q2)Briefly explain the following. a) Sunk cost. b) Avoidable cost. c) Marginal cost. Q3) Draw the diagrams of total cost curves and short run average cost curves Q4) The demand function is given as follows: Qd-250000- 50ОР — 1.5M — 240Pх P= 200 TL, M= 60000 TL, Px = 100 TL. a) Find Qd b) Find price elasticity of demand. Interpret your result c) Find income elasticity of demand. Interpret your result d) Find cross price elasticity. Interpret your result

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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