We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Micro economic - Assignment Example

Comments (0) Cite this document
Micro economic assignment
Part A Your first task is to use models and concepts relating to producer behavior to analyze the effects of increased demand for bio-fuels on the inputs to its production (including crops, such as corn)…
Download full paper
Micro economic assignment
Read TextPreview

Extract of sample
Micro economic

Download file to see previous pages... From the Isocost Isoquant analysis graph above, we assume that corn (C) and Oil (O) are utilized in the production of biofuels (B). Therefore, the production function for biofuels will be represented by B= f(C, O). In the graph, the prices of oil and corn have been represented by PO and PC respectively. Figure 2: Equilibrium Price and Quantity in the Market for Corn .High Isocost and Isoquant curves results when the demand of biofuels increases which results in an increase in production levels of biofuels. For the production of biofuels to be effected, corn has to be used. Since, increased biofuels demands imply increased production of biofuels, it is right to say that the demand for corn will also increase significantly. Consequently, the demand that arises from the production of biofuels and that of food consumption would be compromised as depicted in figure 2 with D2 and D1 respectively. The result ripple effect will, therefore, mean that the price of corn will increase thereby leading to a reduction in the consumption of corn as food. Many people will, therefore, opt for alternatives or substitutes since there will be reduced food availability. An isoquant is a curve that combines factors that are employed in production to arrive at the same output level. The isoquant has no effects in the changes of input prices. Every isoquant shows an output level. Isoquants of Higher levels show high output level (Baumol and Blinder 2011). An isocost line on the other line combines various factors, which are same in cost (Baumol and Blinder 2011). That why it is a straight line. The intercepts represent the amount of units of input which can be employed when it is the only purchased factor in a budget. The slope gives the price. The higher the line means that a higher cost is incurred. Therefore, the increase in prices of corns leads to a movement of the isocost line along the x axis towards the origin. Given a constant budget the quantity of corn can only be reduced. This will lead to a change in the isocost lines. This will further lead to a rise of isocost line along conventional axis. ii. Analyze how developments in agricultural and conversion technology might influence the impacts identified in Part A (i). To counter the effects caused by increased demand for biofuels, increased conversion technology and agricultural productivity as well as use of Agricultural biotechnology and second generation biofuels would suffice (Zilberman, et al. 2008). Changes in technology are internal or depend on the economic conditions. An economy that opts to move away from inputs that cost much can always adopt technology changes. It is a mechanism that solves the increased cost of input problems. In the situation of increased costs of corn, there can be an adoption of technology to deal with the problem. Changes in technology will lead to reduction of quantity of input that is needed and, therefore, reduce the costs that are involved. The output level will increase with the same cost constraint. Therefore, the supply will increase hence the demand will fall (Rubinstein 2006). iii. Analyze the effects of increased competition between participants in the oil market on the impacts identified in Part A (i). In case, there is increased competition in the market of oil ceteris paribus; the prices of oil are bound to fall. If the prices of oil fall, it means that the prices of inputs will drop as oil is the input used in production of biofuels. Therefore, using the same cost allocated for production the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Micro economic assignment Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1398189-micro-economic-assignment
(Micro Economic Assignment Example | Topics and Well Written Essays - 1500 Words)
“Micro Economic Assignment Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/macro-microeconomics/1398189-micro-economic-assignment.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Economic Assignment (Keynesian Economics)
John Maynard Keynes proved as to how an economy can sustain its adverse position of unemployment along with high inflation without intervention of the government. The reason for which government uses this theory for improving economic performance is the power of controlling supply of money within an economy.
3 Pages(750 words)Assignment
Economic Concepts Assignment
The other alternative is to do a combination of both activities. The aim of this exercise is to determine who has the comparative advantage, meaning the one who has a lower opportunity cost of producing potatoes or raising chickens. In the end, one can see the relevance of specializing in an activity where one has the lower opportunity cost.
4 Pages(1000 words)Assignment
Micro Economic Principles
10 hours/unit 15 hours/unit INDIA 12 hours/unit 12 hours/unit Here, it can be seen that if U.S. concentrates only on the production of clothing and India produces only food (i.e. both the nations follow specialization), and then exchange their commodities, both the nations will be able to gain from this set up.
6 Pages(1500 words)Assignment
MIcro and Macro Economic Analysis
It is also a company that is listed in the stock exchange and has been performing quite well in recent years. The demand for petroleum products is mainly influenced by their prices and the growth rates being witnessed around the world. Many countries have achieved tremendous population growths and require to support their manufacturing industries that mainly depend on petroleum products.
5 Pages(1250 words)Assignment
Micro Economics Assignment
The cost of one forklift is 2/6= .33 automobiles. The concave shape of the production possibilities curve shows the increasing opportunity costs. The shape of the curve depicts that the economy must give up larger units of rockets to gain added units of automobiles.
5 Pages(1250 words)Assignment
Important Assignment about Micro economics
Absolute advantage: Absolute advantage refers to the advantage of producing more good per unit of production as compared to the production of others. Application The article talks about international business while maintaining proper markets. The comparative advantage of the United States as compared to China, Germany and France remains debatable.
8 Pages(2000 words)Assignment
Economic concepts assignment
Explicit costs result in the creation of opportunities and tangible assets for the business. Some examples of explicit costs are: rent payments, wages and salaries of employees and labor, raw materials, maintenance, company bills, services from other businesses and other expenses.
4 Pages(1000 words)Assignment
Cardiovascular Endurance and Spatial Orientation
As noted: 'Nutrition and fitness guru Dr. Phillip Maffatone considers endurance to be "a steady state level of activity where one can develop and sustain relatively high speeds at a sub maximum effort over time; the ability to develop higher speeds while remaining predominately aerobic; increasing the percent fat burning and decreasing the dependence on carbohydrate utilization with training."' (qtd.
8 Pages(2000 words)Essay
Poorer countries that do not have access to higher education and technological input are more likely to focus on labor-intensive goods such as textiles and agriculture. If a country wants to expand its economy, then it needs to
2 Pages(500 words)Assignment
Micro Economic
The graph shows the income effect of fall in price of good X on the consumer’s utility curve. Observable in the above figure, U1 and U2 are the two utility
6 Pages(1500 words)Assignment
Let us find you another Assignment on topic Micro economic assignment for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us