1. A company has employed two workers A and B whose productivities are 20 units and 15 units respectively. The wage for A is K12 whilst B’s is K8. Are these two employees optimally employed?                                                                                              [5 Marks]
2. The average total cost of producing a tomato unit and the average variable cost are K2 and K1 respectively. Further, price is K10 and the firm operates in a competitive market.

1. Calculate the fixed and total costs of producing 1000 units of tomatoes. [4 Marks]
2. Calculate the profit the firm makes from selling 1000 tomatoes.              [2 Marks]
3. What is will happen in the market as a result of your answer in (ii)?           [5 Marks]

3. Briefly describe the condition associated with optimization of utility of an individual. [4 Marks]
4. Show (Derive) the mathematical relationship between marginal revenue and elasticity. [5 Marks]
5. A firm operating under a monopoly faces the following demand and cost functions: P=170 - 5Q and TC = 40 + 50Q + 5Q².

1. What’s the profit maximizing quantity and price?                                       [4 Marks]
2. What is the price elasticity of demand at the profit maximizing level?      [3 Marks]
3. Explain the strategy must the firm adopt to increase its revenue.                 [3 Marks]

6. Graphically show the relationship that exists between total revenue and elasticity for a price decrease along the demand curve.                                                                         [5 Marks]
7. Explain what determines who bears the most burden of a tax.                                 [5 Marks]

Describe the types of policies the federal government may have implemented to restore aggregate demand and the potential obstacles policymakers may have encountered.

If a clothing store customer takes a pair of pants from the rack, removes all of the external sales tags, and then approaches the sales clerk for a refund, what crime may be charged?

Theft
Criminal mischief
Embezzlement
None of the above

Consider two mutually exclusive investment projects, each with MARR = 8% as shown in figure

A.On the basis of the IRR criterion, which alternative would be selected?

B. Determine the discounted payback period for each project.

It is possible to have diminishing marginal returns to a single factor of production and constant returns to scale at the same time. Discuss.

A.

The statement is true. As long as only one input has diminishing marginal​ returns, it is possible to have constant returns to scale.

B.

The statement is false. If an input exhibits diminishing marginal​ returns, then doubling that input will result in less than double the output.

C.

The statement is false. The terms​ 'marginal returns' and​ 'returns to​ scale' are interchangeable.​ Therefore, if the factors of production have diminishing marginal​ returns, then there are decreasing returns to scale.

D.

The statement is true. Diminishing marginal returns to a single factor applies to the short run when all other inputs are held fixed. On the other​ hand, returns to scales applies to the long run when all inputs can be increased.

European Organisations

What was the legal uncertainty with regard to legal personality of the European Union?

What are the pros and cons of developing countries' economic policies on free trade and openness during the process of "catch-up"?

QUESTION 19

1. Let X and Y be consumption goods and let K be a capital good, and assume that these are the only three goods produced in the economy. True or false: To produce today more X requires that less Y or K today be produced, but to produce more K today does not require that less X or less Y be produced.

   	A.	True
   	B.	False
   	C.	DO NOT CHOOSE THIS ANSWER.
   	D.	DO NOT CHOOSE THIS ANSWER.

1 points   

QUESTION 20

1. Which of the following circumstances is most likely to decrease the elasticity of demand for Cory’s Checker Taxicab Service in New York City?

   	A.	New Yorkers' incomes fall.
   	B.	The number of Uber and Lyft drivers in Manhattan increases.
   	C.	A sudden and unexpected heavy rainfall starts in New York City.
   	D.	New Yorkers come to get greater enjoyment from driving their own cars and motorcycles to their destinations within New York City. QUESTION 17 Which of the following is best explained by the fact that people make decisions at the margin? A. If Molly has a comparative advantage over Jacob at producing bananas, then Jacob has a comparative advantage over Molly at producing fish. B. A mother who would, if she had to, sacrifice her life to save that of her child will not donate a kidney to a stranger. C. Each individual has preferences that are transitive. D. Rachel, who is seated in a park on a beautiful day in Fairfax, refuses to buy a bottle of fresh air from Ricky, who - having realized that everyone in constant need of air - has decided to try to earn his fortune by selling bottles of this necessary commodity.

1) Does social media truly represent who we are or is all just one big marketing experiment? Do the positives outweigh the negatives or vice versa?

Look up the definitions of these types of unemployment. Use two sources. Evaluate each type and determine how it impacts the worker and how it impacts the economy.'Types of Unemployment; *Frictional Unemployment *Structural Unemployment *Cyclical Unemployment

Graphic Tees is a design company that sells custom printed t-shirts. The firm sells printed t-shirts under a block pricing scheme that charges $16 per t-shirt if the customer buys up to 10 t-shirts and $13 if they buy 11 to 20 t-shirts. The demand curve is Q = 1200 - 50P, and the marginal cost of a t-shirt is $7. What are the profits for Graphic Tees under this block pricing scheme?

Tailoring experts Frieda Oglesby, Rena Fitts, and Will Bertrand decide to go into business together. Their business, FitzWellby, is a business that provides in-home measuring and fittings and even on-site stitching to busy executives who don't have time to take their clothing to tailor shops.

Since all three have the same skills, they plan to share the profits of the business equally. At first, Oglesby believes that their business is unlikely to be sued for any reason—after all, they're just providing in-home services. Fitts points out that one of the three could accidentally damage a client's personal property or, more likely, an expensive piece of clothing. Oglesby is quickly convinced.

Which type of partnership would be right for FitzWellby: general, limited, limited liability, or joint venture? Explain your response

Industry Level Analysis/ Porters Five Forces of Etsy

Kate has a monthly income of $500. She spends her income on cell phone calls (measured in minutes on the horizontal axis) and other goods (measured in units on the vertical axis). The price of a unit of other goods is P_Y=1. Kate’s mobile phone company offers her the choice of two cell phone plans:

      Plan A: Pay a $40 monthly fee and make calls for $0.20 per minute.

            Plan B: Pay no monthly fee and make calls for $0.40 per minute.

27. Suppose Kate has a utility function of the form U=min(0.1X,Y). Kate’s utility at her utility maximizing bundle is ______166.67_______ utils.

28. Suppose instead that Kate has well-behaved preferences and is currently buying minutes under Plan A. Now suppose that Plan B becomes available, and by coincidence her budget lines under Plan A and Plan B happen to intersect at the number of minutes she is currently buying under Plan A. Kate will be (better off, worse off, just as well off) _____________ buying minutes under Plan B.

8. Meet Lobo. He is an alien bounty hunter and as such is a monopolistic competitor, given his brand of bounty hunting and has “requested” your help. He has a fixed cost of $5,000 and a constant marginal cost of $500 per job. If he faces a demand curve described by this equation: P = 1,000 – 10Q. (where P is the price he charges and Q is the number of jobs he takes)

a. At what price will Lobo break even and how many jobs will he have to take at that price?

b. Find Lobo's price and quantity where he maximizes profit

c. Calculate Lobo’s Monopoly profits from part b above

d. From your answers a through c above, convince Lobo that to make profit, he should not take on as many jobs as he can get his hands on. e. Suppose Lobo’s planet opens up and he is able to take jobs all over the galaxy, not just his planet, what would happen to Lobo’s price, number of jobs, and monopoly profits in the short run after opening up. (Assume that as the main man, Lobo charges different prices compared to all other bounty hunters and that before opening up, the bounty hunting market had reached its long run equilibrium without trade)