Write short notes on : Importance of Micro Economics

Q: 12. Which one of the following statements is correct concerning the relationships among the firm's…

A: According to the given question Cost functions relationship in simple words we can say that is the…

Q: Average Fixed Average Average Total Total Product Cost Variable Cost Cost Marginal Cost $ 25.00 1 $…

A: There are many firms in purely competitive market. All the firms produce identical goods so buyers…

Q: If tax is imposed on the buyers, ODemand shift left O Demand shift right O Supply shift left OSupply…

A: At the point when the tax is forced, the value that the purchaser addresses should surpass the cost…

Q: Calculate the resulting change in GDP for each of the following MPCS when the government decreases…

A: reduction in taxes may increases the consumption , and MPC refers the part of income which consumed…

Q: 10 100 200 300 400 500 600 Quantity demanded (per day) (Figure: The Demand for Shirts) Use Figure:…

A: Total revenue is the income received by seller by selling total number of product at level of price…

Q: Marginal product curve, mathematically is the slope of which curve?

A: # Marginal product is referred to be as the change in total inputs used divided by the change in…

Q: Suppose the market shares of Cola-Cola, Pepsi, Anheuser-Busch, Coors, and Miller were 40 percent, 25…

A: # Concentration ratio in a market can be computed by emphasizing on the top 4 big firm's.  We just…

Q: Point A is: (a) Attainable E 13 (b) Not attainable 12 (c) Desirable and attainable Qx (d) Desirable…

A: A production possibilities frontier is the locus of all most extreme yield blends, considering there…

Q: What are the firm's average total costs at an output of 10 pizzas? $12 O $100 $10 $120

A: Average total cost is the per cost of the goods and services so here we can choose the correct…

Q: Year CPI 2017 175 2018 180 Table 1 8. Suppose that the data in the Table 1 above reflect price…

A: here we can choose the correct option by calculating the inflation which are as follow-

Q: In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe.…

A: Here we calculate the future amount by using the formula which are as follow-

Q: 12) A price-taking firm A) cannot influence the price of the product it sells. B) talks to rival…

A: # In a market there can be two possibilities when we talk about firms. Either they can be price…

Q: If the inverse demand function for toasters is p=70-Q. what is the consumer surplus if price is $25?…

A: Consumer surplus occurs when the price consumer pay for the goods and services is less than they…

Q: US imports 260 Personal Taxes 45 Transfer Payments 247 US Exports Personal Consumption Expendi tures…

A: we can calculate the national income by using the above figures as follow-

Q: ncome elasticity of demand is expressed as- Percentage Change in Quantity Demanded Percentage Change…

A: According to the given question Income elasticity of the demand in simple words may be defined as…

Q: The amount collected by the government in the form of interest, fees and dividends is known as a)…

A: The amount collected by the government in the form of the interest, fees and the dividends is known…

Q: Which of the following is correct regarding the shape of total fixed cost curve (TFC) ? (A)…

A: According to the given question Total fixed cost curve in simple words relatively refers to the…

Q: Draw graph well explain 4. Inaneconomy C=50 and MPS 0.5. Draw a diagram showing behaviour of…

A: we can draw the graph and solve the equation as follow-

Q: Write a short note on monopoly market structure

A: A market structure which is characterized by a single seller is known as monopoly market structure.

Q: When a Central Bank takes action to decrease the money supply and increase the interest rate, it is…

A: The central bank is responsible for controlling and regulating the supply of money in an economy by…

Q: Q.11 A producer achieves equilibrium at that level of output where: (a) MC curve intersects MR curve…

A: # With the production of an additional unit, the cost we come across is the marginal cost and…

Q: 20. Contraction of demand is shown by: (a) Upward movement on the demand curve (b) Downward movement…

A: # Demand curve is downward sloping showing the negative relationship between price and demand.

Q: What is the price elasticity of supply, when: (a) Supply curve passes through the origin; (b) Supply…

A: According to the given question a) The price elasticity of supply when the supply curve passes…

Q: 18. Which of the following are most likely to be helped by inflation? People living on a fixed…

A: Inflation is usually defined as an increase in the total price level or the cost of living in a…

Q: True/False When Total revenue is maximum then Marginal revenue is 0

A: The total quantity of goods and services sold is referred to as total revenue.  It's calculated by…

Q: ation below to calculate the following. (Assume that income receipts and unilateral current and…

A: here we can find the answers by using the the table which are as follow-

Q: 5 Why Does the Demand Curve Slope Downwards to the Right?

A: Demand curve is downward sloping because of generally reasons 1) First because of the income effect…

Q: When supply curve is upward sloping, its slope is (a) Positive b) Negative (c) First positive then…

A: Any curve, whether supply or demand, has a slope with value more than 0 (positive) if it is upward…

Q: . Deflation is- (A) A situation of falling prices (B) A situation of rising prices o (C) A situation…

A: According to the given question in simple word we can say that deflation is a generally decrease in…

Q: Question 9: Consider the market for hamburgers in Dallas, where there are over a thousand burger…

A: A change in demand refers to change in the desire of consumers for a good or a service. This may…

Q: When MRS is constant, then this means that Good X and Y are Substitutes. True / False

A: Marginal rate of substitution denotes the slope of the indifference curve and is defined as the rate…

Q: Question 2 Which of the following statements is correct in the case of a four-sector economy? a) G…

A: According to the given question A four sector model is an model which actually includes the…

Q: Find the concentration ratio of the market whereby the top 4 firms share percentage is as :- 30, 28…

A: The measure which in turn depicts the total sales share in the industry and is being accounted for…

Q: Movement along the supply curve is also called: (a) Change in supply (b) Change in quantity supplied…

A: # we can observe two changes in the supply curve. Either there can be a movement it along the supply…

Q: QUESTION 15 and the aggregate When the Federal Reserve reduces the money supply, at a given price…

A: Here we can choose the correct option and discuss the change of fed policy how affect the economy..…

Q: Suppose a firm can sell one unit of product for $50, two units for $45 each, three units for $40…

A: Total revenue is revenue earned by seller by selling the quantity at particular price , so TR=P x Q…

Q: If the marginal propensity to consume (MPC) equals 0.25 and the government increases spending by…

A: government spending increases the consumption and consumption increases the GDP so we can calculate…