User Account

All Pages

BUS 201 Microeconomics Assignment

Assignment Help Microeconomics
Reference no: EM132572668

BUS 201 Microeconomics - Emirates College of Technology

Learning outcome 1: Describe the production possibilities frontier and relate its importance to utilizing firms' economic resources efficiently.

Learning outcome 2: Analyze and coordinate the activities of a firm by using the theory of the firm.

Learning outcome 3: Employ the costs, output concepts and revenue curves and their relationships in order to maximize the economic profits of firms.

Learning outcome 4: Use the characteristics of market structures to formulate market economic activities of the firm.Question 1: In the context of production possibilities frontier (PPF), explain production efficiency, including its definition and the meaning of unused resources and misallocated resources

1. Definition ofProduction Efficiency
2. Unused Resources and Misallocated Resources
a. Meaning of Unused Resources
b. Meaning of Misallocated Resources

Question 2: Answer the following questions:
1. Define the principal-agent problem and give examples
2. Explain the three solutions that companies use to solve the principal-agent problem:

Question 3: Answer the following questions:
A. In a perfectly competitive market, explain why each firm in this market is a Price Taker and define this concept; and explain what kind of a demand curve faces each firm in this market
1. Define and explain the concept of Price Taker
2. Demand curve for a perfectly competitive firm
B. Explain the two kinds of barriers to entry that exist in a monopoly.

Question 4: A firm has the following short-run production functions. The total fixed cost of the firm is AED 1,800. The firm pays a wage rate of AED 300 per day for each worker. The firm's only variable cost is the wages of workers. Calculate the following:

A. Calculate the Average Product of Labor and the Marginal Product of Labor by filling the empty cells in the following table

Number of Workers

Total Output (Product)     

(per day)

Average Product of Labor

APL

Marginal Product of Labor

MPL

0

0

-

-

1

40

 

 

2

75

 

 

3

105

 

 

4

130

 

 

5

150

 

 

B. Calculate the following:

1. The Average Fixed Cost (AFC) when the total output is 75 units.

2. The Average Variable Cost (AVC) when the total output is 75 units.

3. The Average Total Cost (ATC) when the total output is 75 units.

4. Calculate the Total Cost (TC) when the total output is 105 units.

Question 5: The Eastern Company pays each worker it employs a wage of AED 800. Each unit of output is sold at a price of AED 10. Answer the following questions:

Number of workers

Total Output

Marginal Product of Labor (MPL)

Value of Marginal Product of Labor VMPL = P x MPL

Wage per Worker W

Profit Margin (PM)PM=VMPL-Wage

0

0

-

-

-

-

1

140

140

 

800

 

2

260

120

 

800

 

3

360

100

 

800

 

4

440

80

 

800

 

5

500

60

 

800

 

6

540

40

 

800

 

A. Fill in the empty cells in the table.

B. State the condition that the firm should meet to maximize his profit.

C. How many workers should this firm employ to maximize his profits?

Verified Expert

The paper that I solved as my sample work was to emphasize on how can an entity ensure maximum utilization of its resources by being inside the production possibility curve. Solution for solving the agent-principal problem was discussed which will lead to a better relation between performance and output. The barriers for any new entrant in a monopoly market was also stated along with many practical problems solved for different ratios of cost and total output.The answers were written in Microsoft Office Word Document as asked for and well within the prescribed time limit.

Reference no: EM132572668

Questions Cloud

What sort of organizations are likely to use the periodic : What sort of organizations are likely to use the periodic inventory system? What kind of organizations will prefer to use perpetual inventory system?
Make the journal entry to record the interest received : Make the journal entry to record the interest received for 2017. Prepare the journal entry to record the redemption of the bond at maturity.
How alignment to relevant regulations influenced : Explain how alignment to relevant regulations and ethical reporting influenced your accounting practices and notes, providing examples to support
Prepare the journal entries to record the purchase by thomas : Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021
BUS 201 Microeconomics Assignment : BUS 201 Microeconomics Assignment Help and Solution, Emirates College of Technology - Assessment Writing Service - Analyze and coordinate the activities
Recovering from large product liability suit : Suppose you have just begun a position as an upper-level manager at a local business that is recovering from a large product liability suit
How to prepare the journal entries required at december : Prepare the journal entries required at December 31, 2016 and 2017, assuming that the inventory is recorded directly at the lower of cost
What the base amount is : When performing vertical analysis of an income statement, the base amount is? Total expenses./Sales revenue./Gross profit./ Net sales
Think of marketing strategy : What do you all think of this marketing strategy as it pertains to targeting different markets? Are you aware of other examples of this strategy in place?

Reviews

len2572668

7/14/2020 5:24:47 AM

need to solve each question separately using the handouts attached and for the calculation question need to write the equation used then the steps how to got the answers. need to be delivery tomorrow morning urgently

Write a Review

Microeconomics Questions & Answers

  What are the nash equilibrium prices

Write down the expressions for how much a consumer at location d would value the products sold by firms A and B, if they set prices Pa and Pb? Based on your expressions in (a), how much will be demanded from each firm if prices Pa and Pb are set?

  Which will not cause a decrease in the demand for apples

Suppose we observe that as a firm decreases its price its total revenue decreases. Which of the following is a possible value of its price elasticity of demand. Which of the following will not cause a decrease in the demand for apples.

  What is the constant beginning-of-month payment

Suppose you graduate with a debt of $42,000 that you or someone must repay. One option is to pay off the debt in constant amounts at the beginning of each month

  What is welform reform and official poverty level

How does the U.S. department of agriculture calculate the official poverty level? What government assistance programs does the census bureau consider when calculating household income? What programs are ignored?

  Compute the marginal and average tax rates at the given

a calculate the marginal and average tax rates at the following income

  How much does this family save in question

A family purchased a house in March 15, 2005 with a 25-year, $250,000, 6.35 % mortgage. In June 15, 2012, when the mortgage rates were substantially lower, they refinanced the balance of the loan with a 15-year, 4.0 % mortgage. How much does this ..

  What are ethical principles based on according to kant

What are ethical principles based on according to Kant? Did Kant believe ethical principles are universal and absolute? What is a ‘categorical imperative'? What, according to Mill, is the highest aim for human beings, our telos?

  Paralegals working in southeastern wisconsin

Last year there were 5,000 paralegals working in Southeastern Wisconsin, and they earned an average wage of $15.50/hour. This year, there are 4,800 paralegals in the area with an average wage of $13.95/hour.

  How does offshoring affect manufacturing and logistics

What is offshoring? How does it affect manufacturing and logistics? There are four assembly processes. Name all four, and pick two to discuss in detail.

  Identify key facts about short-run economic fluctuations

Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run.

  What combinations of ?nancing allow no change in investment

Suppose that the government wants to increase its expenditure g and has the options of ?nancing it by higher taxes, bond issues or increases in the monetary base. Further, when g is increased through bond or monetary ?nancing, the central bank can..

  Explain what exactly is missing

The Heckscher-Ohlin model is famous for being elegant and mathematically sophisticated, yet failing to describe reality. One manifestation of this fact is Trefler's Case of Missing Trade. Explain what exactly is missing. In what sense is it missin..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd