first Assignment for Micro Economics
Due Date: 21st May, 2012
1: a) Explain what economic profit is and what accounting profit is definitely. b) Will certainly Accounting revenue be usually greater than or perhaps equal to economical profit? Make clear why. c) Given that Value = five, Wage charge = a couple of, Labor employed = 10(per month), variety sold = 100 (per month), lease of Capital = 1 & Capital employed = 5 (per month). i) Calculate Accounting profit monthly.
ii) Assume that rather than the previous organization, you could also have taught economics classes and earned 95 $ a month. What will your economic profit be?
2) Determine: i) Cost elasticity of demand
ii) Value elasticity of Supply.
b) Suppose that lessening the price of a pen coming from 10 to five Rs. Boosts its demand from five-hundred to 750. Calculate the Price elasticity of demand. c) i) How much does perfectly elastic demand imply?
ii) What does correctly inelastic supply mean?
Explain applying diagrams.
3) i) The accompanying table offers part of the source schedule for private computers in america.
a. Determine the price suppleness of supply when the price increases from $900 to $1, 95.
ii) Amazon online. com, the web bookseller, wants to increase their total revenue. One strategy is to offer a 10% discount in each book it sells. Amazon online marketplace. com knows that its consumers can be broken into two unique groups in accordance to their probably responses towards the discount. The accompanying stand shows how the two teams respond to the discount.
n. Calculate the cost elasticities of demand for group A and group W.
4) The accompanying desk lists the cross-price elasticities of demand for several products, where the percent quantity alter is scored for the first very good of the couple, and the percent price alter is tested for the second good.
a. Clarify the sign of each from the cross-price elasticities. What does this imply regarding the relationship involving the two goods in question?
5) The accompanying table shows the purchase price and...