StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Midterm paper in microeconomics - Case Study Example

Comments (0) Cite this document
Summary
Name: Tutor: Course: Date: Case Study, Macro and Micro Economics Answer to Question 1 Given that your new upstart has finished its main idea, the production technology is therefore presented as: Y = F (K, L) = AK0.4L0.8, Where: A = technology factor K = Capital L = Labor (a) Returns to scale implies the amount of additional output that could be obtained given a proportionate change of all inputs…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
Midterm paper in microeconomics
Read TextPreview

Extract of sample "Midterm paper in microeconomics"

Download file to see previous pages This can be presented in a graph as follows: Figure 1: Graph Presenting the function, Y = F (K, L) = AK0.4L0.8 (b) In order to break even, one should hardly be worried about the production size since size is hardly the only factor that influences production. Again, fixed costs are not related directly to a firm’s level of production. Break-even involves the point at which both variable and fixed costs would be recovered, implying that production size is not a major factor to consider in this case. Answer to Question 2 This is a case of two firms that compete in a sequntial game, where each firm chooses prices as its strategic variable.Firm 1 make the choice of price p1, first, while firm 2 chooses p2 later. Each of the two firms has a marginal cost of 20. The assumption in this case is that a consumer is loacted at point x, x being the distance from firm 1, and obtains some utility after buying from either of the two firms. Such functions are as below: U1 = V – p1 – 16x U2 = V – p2 – 16 (1 - x) Given that V is a constant, which is so large that it could cover the entire market: (a) The best response for firm 2 would require that the firm looks ahead to its initial decision. It would then assume that given that it comes to that point, firm 1 will choose the optimal outcome of firm 2; in this case, the highest payoff in terms of price. Secondly, firm 2 would have to back up to its second all the way to the last decision. It would assume that firm 1 would opt for high prices (Peterson, 39). The firm would continue reasoning back in the same way until all its decisions are fixed. Such decision could be presented in a (p2; p1) space as follows: V = U2 + p2 + 16 (1 - x) V= U1 + p1 + 16x Thus, U2 + p2 + 16 (1 - x) = U1 + p1 + 16x U2 + p2 + 16 = U1 + p1 + 32x Since the two firms are competing sequentially, the market equilibrium price is the point where p1= p2 since all firms would ultimately have to lower their prices in order to attract as many customers as possible (Peterson, 39). (b) The equilibrium price is p1 =p2 =20. The profit for firm 1 is Yp1 – 20c while that of firm 2 is Yp2 – 20c, where Y is the total output and 20c is the total cost which is constant for the two firms. (c) Equilibrium price is 20. The market share for firm 1 and firm 2 are x and (1 – x) respectively. Answer to question 3 The following data was obtained from Rema Store. (1) The name of the store is Rema Grocery Store. The type of cheese in the store, the prices per kilogram and the brand of cheese including the unit size are as shown in the table above. (2) Based on the various brands, unit sizes, and price per kilogram for each brand, it is easy to propose price discrimination scheme. The price discrimination scheme could explain more about the stores and the brands of cheese sold. The best price discrimination scheme for the products is the first degree of price discrimination. In this case, the seller would sell various product brands of cheese at different prices. The scheme would require that the seller knows the reservation price for each of the brand sold. Once the seller identifies the reservation price for each brand, he or she is able to sell the different brands of cheese to the consumers at the maximum prices possible. Customers hardly consider quantities but their perception of quality is based ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Midterm paper in microeconomics Case Study Example | Topics and Well Written Essays - 1000 words”, n.d.)
Midterm paper in microeconomics Case Study Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/macro-microeconomics/1489754-midterm-paper-in-microeconomics
(Midterm Paper in Microeconomics Case Study Example | Topics and Well Written Essays - 1000 Words)
Midterm Paper in Microeconomics Case Study Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/macro-microeconomics/1489754-midterm-paper-in-microeconomics.
“Midterm Paper in Microeconomics Case Study Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1489754-midterm-paper-in-microeconomics.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Midterm paper in microeconomics

Midterm Paper

...? Midterm Paper LIST A: Question 3 Political community could refer to a group of individuals with shared interest, shared goals and interest in their government. This could refer to how they conduct themselves, how they make the decision; how they identify common issues that affect their rights, life and duties. The most obvious expression of a political community could be the state. It has a one way of the many different ways of organizing a government; this could be due to the different levels and varying degrees of unity of the community. For example, a citizen of Berne population belongs to commune which could be the most important political community. This concept of state could have led the division of the whole world into states...
8 Pages(2000 words)Term Paper

Midterm paper

...? Issue 10: Is It Ethical to Use Steroids and Surgery to Stunt Disabled Children’s Growth? Issue 10: Is It Ethical to Use Steroids and Surgery to Stunt Disabled Children’s Growth? This paper will provide an argument based on ISSUE 10 as stipulated in Taking Sides textbook. Thus, the paper shall first provide an outline of the chosen issue. With reference to the book, issue 10 provides a platform for an argument with regard to the ethics involved in the process of using steroids and surgery to stunt disabled children’s growth (Slife, 2012). While some people view this process as ethical, others totally disagree with the practice on moral and other ethical considerations. Therefore, this necessitates for an outline of both perspectives...
9 Pages(2250 words)Essay

Midterm paper

... relief from either pain and often from the conscious knowledge of their physical state. Palliative care offers a solution to the problem of how the end of life comes to a patient in a great deal of pain and living in an undignified set of circumstances. The American Medical Association The American Medical Association (AMA) released a paper entitled “Sedation to Unconsciousness in End-of-Life Care” in which the argument for palliative care is presented. The purpose of palliative care is presented as a way to manage the end of life so that suffering is relieved and the patient is given a less unpleasant end to their life. The paper questions the idea of using palliative care to fully sedate a patient, fearing that it is another method...
9 Pages(2250 words)Essay

Midterm paper

... Midterm Paper Question Mark Twain argued that the civil war destroyed s that had taken centuries to establish. The civil war also changed the social life of the Americans (Roderick 34). According to Mark Twain, the roots of a civil war are found on a country’s political fabric, in the fundamental law, in complex organisms and the constitution itself. Twain, in his books, also stated that civil wars occur due to the conflicting constructions that a country adapts, as well as in the organization of slavery, which a country recognizes and plans to protect. For instance, according to Mark Twain, the American Civil War evolved from the unparalleled conflicts between “The Negro" people and the average American. According to Twain... Midterm Paper...
5 Pages(1250 words)Essay

Midterm Paper

... perspective is portrayed as a way of offering the migrants a better life; not suffer the constant migration due to the power of the business owners or work for almost nothing due to high number of supply of available labor from the migrants. In a scene where Timothy was talking to Thomas about wage reduction: “Do you know who runs the Farmers’ Association? I’ll tell you. The Bank of the West. That bank owns most of this valley, and it’s got paper on everything it don’t own. So last night the member from the bank told me, he said, ‘You’re paying thirty cents an hour. You’d better cut it down to twenty-five.’ I said, ‘I’ve got good men. They’re worth thirty.’ And he says, ‘It isn’t that,’ he says. ‘The wage is twenty-five now’” (Bloom 106...
5 Pages(1250 words)Book Report/Review

Midterm Paper

...?Midterm Paper BACKGROUND & CONTEXT This thesis aims at reflecting upon my learning and understanding of leadership from the article d “Crucibles of Leadership” by Bennis & Thomas that reflects the transformation of people’s mindset in accordance with transformative events. It has often been argued that leaders are not born with extra ordinaries qualities within them, they find meanings and learn from the most negative events. This particular notion acts beneath the explanations given by Bennis & Thomas in their article titled “Crucibles of Leadership”. Theoretically, leadership is explained as a process of influencing the society in which one can procure the assistance and the support of others in the procedure of accomplishing... Paper...
10 Pages(2500 words)Essay

Midterm paper

...Pan Lin Prof. Lindamood Music 261 Nov. 2, Midterm Paper Music sooths the psyche since it elicits passion, commitment, and determination. It is paramount to acknowledge the crucial nature of music in enhancing the communal wellbeing since the commencement of livelihood in diverse societies. As such, one of the most distinguished statements is “Music, the greatest good that mortals know, and all of heaven we have below” said by Joseph Addison. It is fundamental to acknowledge that since birth our life is filled with music, the greatest gift ever created. This gift had always played a colossal role in my existence. Around me, I have an adoring music family; my father is a big fan of opera while my mother enjoys all classical and country music...
2 Pages(500 words)Essay

Midterm Paper

...Add (Add (Add Information) (Add Competitive Forces Question 1a. Television manufacturing industry has undergone tremendous changes for the last few decades. As Gage opines, rapid changes with regard to technology and market structure raise potential challenges to all players in the value chain of the industry. Degree of competitive rivalry is very high in this industry since majority of the market players follows a competitive pricing strategy. In addition, buyer has increased bargaining power in the television industry as they have a range of product choices and good market information. In contrast, supplier power is less in the industry as television manufacturers can easily switch their suppliers. Modern computers... (Add (Add Information) ...
2 Pages(500 words)Essay

Midterm paper

... Section/# MB301 Midterm Ultimately, there are two distinct issues at hand from an ethical standpoint with relation to this specific case. The first ethical issue is the request, arguably the demand, by the manager of the fireworks company for the employee to “market the hell” out of the fireworks. Essentially, the manager expects to see impressive sales figures and an extraordinary growth and profitability over the next several months; otherwise the employee could potentially lose their job. Naturally, this is both an innate and tacit threat to job security of the newly hired college graduate. Complicating this issue even further is the request that the manager makes based upon reflecting the fireworks as the award-winning. Naturally...
5 Pages(1250 words)Term Paper

Midterm paper

...Protecting the Youth Affiliation Protecting the Youth Prevention is most promising when it is directed to perusable youngsters. We advise the youth and our children to stay away from drugs, but of course we know that they will test substance no matter what they are told. The issue that I took upon to write about is protecting the youth. The reason I chose this topic is because it is a very sensitive topic for me. Growing up as a youth I was very lost. My mom was a single mother who worked eighty hours a week just to make ends meet for my brother and I. I had esteem issues I was not focused in school my grades were beyond poor. My classmates made fun of me being African, they said my hair was short, I thought I was very dumb...
1 Pages(250 words)Essay

Observation Paper on Stress at a Local High School Football Game

...Observation Paper on STRESS at a Local High School Football Game Football is a high quality game which necessitates a lot of potentiality and management of various kinds of stress associated with the game. Stress can be defined as the organism’s total response to a particular environmental demand or pressure. Physical, and psychological( emotional and mental) pressures play vital roles in a high school football game as the players, the parents, other spectators, officials, coaches, and referees have to undergo a great amount of stress as the game is in progress. This large amount of stress can affect the normal behavior pattern of all the people involved in the game and people tend to be aggressive and pressure ridden, depending upon...
10 Pages(2500 words)Assignment

James Madison's 51st Federalist Paper

If this theory was seriously followed, it would suggest that the citizens must opt for the president, the legislators, as well as the judges. However, the framers identified certain realistic problems in making all the offices elective. Especially, the judicial branch would face problems because the typical person does not have knowledge about what qualifications judges ought to have. Judges must have great capability, but also not have any political pressures. While federal judges are selected for life, their philosophy will not be inclined via the president who appoints them or the senators whose permission the president will take.

All the arguments were generated due to his past life as he was in an aristocratic fami...
6 Pages(1500 words)Term Paper

Reflective Paper

To social psychologists, human behaviour is because of the interaction of immediate social situations and mental states. Social Psychology is an interdisciplinary domain that combines the concepts of Sociology and Psychology and bridges the gap between them. It is focused on both the intrapersonal phenomena such as persuasion and attitudes, and interpersonal phenomena such as group dynamics and relations with others. Social Psychology is an essential tool for the improvement of our lives not only as a means of interacting and understanding others but also as a means of understanding ourselves in order to make a more relevant impact on the world around us. This reflective paper will provide insights on major principles of Social Ps...
8 Pages(2000 words)Research Paper

Write a 1,400- to 1,750-word paper in which you analyze an ethical dilemma that has been addressed by a professional journalist. 1.Go to the Indiana University School of Journalism website, at http://journalism.indiana.edu/resources/ethics/ and select o

...Ethical Dilemma Addressed by a Professional Journalist The paper aims to analyze an ethical dilemma thathas been addressed by a professional journalist. A report to be analyzed should be selected from the Indiana University School of Journalism website. The following points are to be addressed: a. What is the ethical issue or dilemma? What choices did the journalist have when reporting on the issue, and why did he or she decide the way he or she did? b. Do you agree or disagree with the journalist’s decision? Why? c. What was the effect of the decision on the individuals involved and on the community in general? What would have been the effect of a different choice in addressing this ethical decision? d. Are there any relevant laws...
7 Pages(1750 words)Essay

Literature and the Individual in Early Modern Masterpieces Paper

...Virtue is Power in “The Prince” 6 September Virtue is Power in “The Prince” “The Prince,” since it was published in 1532,has been the product of numerous political and philosophical analyses and debates. As a political treatise, it both enjoyed respect and received condemnation. The term “Machiavellian,” in particular, has since been marred with negativity because it asserted the argument that Machiavelli strongly believed that the ends will always justify the means. Several writers, such as Ledeen (2010) and Cave (2002), however, stressed that Machiavelli did not directly espouse such an ends-justify-all-means directive, without clarifying the ability of leaders to remain virtuous at all times. This essay explores how Machiavelli...
7 Pages(1750 words)Essay

Watson's Theory of Caring Paper

...Watson’s Theory of Caring of the Nursing Name of the Concerned Professor October8, 2011 Watson’s Theory of Caring Introduction There is no denying the fact that the healthcare systems around the world are going through a process of restructuring. In that context there is a great risk that the nursing and caring services in these systems may get dehumanized. It goes without saying that the profession and discipline of nursing is primarily about human care. So, if nursing is essentially about caring than it is imperative that the nurses ought to make a conscious effort to inculcate the element of care... Theory of ...
8 Pages(2000 words)Term Paper

Macro and Microeconomics Factors in the UK Housing Market

The housing industry is divided into residential, commercial and industrial segments. Economists define supply in terms of service units, that is, a physical unit can be deconstructed into the services that it helps provide. These housing unit services are considered as an unobservable theoretical construct. Housing stock depreciates making it qualitatively different from a brand new constructed building.
The owner, user/owner and renter comprise the demand side of the housing market while the renovators and developers comprise the supply side of the market. In order to implement the simple demand and supply analysis to the housing markets, several modifications have to be made to the standard microeconomic procedures and ass...
8 Pages(2000 words)Research Paper

Body and Conclusion of the Paper about Biodisel

... in air pollution. b. Null Hypothesis In justifying the alternate hypothesis, this research paper contains a contradicting null hypothesis which claims that biodiesel cannot reduce air pollution. Undeniably, biodiesel produces approximately 70% less carbon dioxide compared to conventional fossil fuels. However, biodiesel generates approximately 2% more NO2 compared to fossil fuels (Lewis 89). NO2 is a harmful pollutant which poses serious health impact to humans. Unlike CO2 and its global warming effects which are future oriented, increase in NO2 cause immediate danger to persons in form of respiratory complications. In addition, NO2 is a precursor for depletion of ozone layer; hence responsible for the increase of carcinogenic radiations...
7 Pages(1750 words)Research Paper

Paper Cups versus Foam Cups

...Paper Cups versus Foam Cups, which is better Paper Cups versus Foam Cups, which is better There have been increases in environmental consciousness in the consumers in the choice of the products for their daily use. This understanding has led to a change in product development and packaging, as a measure of ensuring the needs of the consumers are met (Stevens, April 10, 2014). The debate on form and paper cups has been ongoing for some time without a clear demonstration on the better cup for environmental conservation efforts. Paper Cups are cups made of thin cardboard that are disposed after use and are mostly lined with wax or plastic for leakage prevention while foam Cups are a molded construction that offers more insulation...
15 Pages(3750 words)Term Paper
sponsored ads
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.

Let us find you another Case Study on topic Midterm paper in microeconomics for FREE!

Contact Us