1.How do you find out how many products a firm should produce if it sells its products in a perfectly competitive market structure and the market price is $50? You are given the following information: If you produce 0 units total costs (TC) are $25, 1 unit TC is $65, 2 units $95, 3 units $140, 4 units $195 and 5 units $255.

2.You are the owner of an ice cream shop that earns a profit most of the year except during the cold winter months. During the month of December, your rent and other fixed costs amount to a total of $200. If you remain open, your total variable costs (workers, ice cream cones, etc.) will amount to $300. If you would be able to sell 100 ice cream cones at $4 each during December, what should this firm do?

3.What is the main difference between command/planned economy and free market economy?

If the US is capitalist leaning then the US use free market?

Is UK capitalist leaning too?

4.By intent, education increases the productivity of labor. Suppose a country institutes effective public education so that the literacy and numerous rates within the country increase dramatically.

a.Thinking only in terms of a single firm's situation, discuss the consequences for the firm's hiring decisions.

5.A man bought a car in installment basis. If he pays P10,000 per month at a rate of 15% compounded monthly for 3 years, find the cash price and the accumulated amount of money for the car.

6.Agent B's preferences are given by:

U (x,y) = y - ((x)^(-2))/2

Which are quasi-linear preferences

Budget constraint is -> x*p +y = 10

(Since p= price of good x, and Price of good y is normalized to 1, agent has an endowment of 10 units of y).

How do I solve for the Demand of each good?

7.Consider the following hypothetical market. The equilibrium price is $10 and the equilibrium quantity is 20 units. The own-price elasticity of demand is -0.5 and the own-price elasticity of supply is 0.75. If price increases from $10 to $12, what will be the new level of quantity demanded?

8.The following schedule of funds is available to form a sinking fund. Current year

(n). $50,000

n+ 1 $40,000

n+2. $30,000

n+3 $20,000

At the end of the fourth year, equipment costing $250,000. 00 will have to be purchased as a replacement for old equipment. Money is valued at 20% by the company. At the time of purchase, how much money will be needed to supplement the sinking fund?

9.P^S=10+Q^S

P^D=100-2Q^D

If the government imposes a per-unit (excise) tax in this market, what is the maximum tax revenue that the government can collect?

10.If we have a labor market characterized by the following equations Ld=-1+115 Ls=2W+16. What is the equilibrium wage and quantity of workers?