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    Micro Economics II Assignment 2023 Regular

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    feyisasori54
    This document provides instructions and questions for an individual assignment in Microeconomics II for Oromia State University's College of Development Studies Department of Economics. It outlines the main reference materials to use, warns against copying, and sets a deadline of April 30, 2016. The 5 questions address topics like the differences between factor and product markets, derived demand, health insurance behavior, monopolistic competition, and duopoly market structures. Students are asked to answer the questions clearly and neatly, as handwriting quality will be considered in grading.

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    Micro Economics II Assignment 2023 Regular

    Uploaded by

    feyisasori54
    58 views2 pages
    This document provides instructions and questions for an individual assignment in Microeconomics II for Oromia State University's College of Development Studies Department of Economics. It outlines the main reference materials to use, warns against copying, and sets a deadline of April 30, 2016. The 5 questions address topics like the differences between factor and product markets, derived demand, health insurance behavior, monopolistic competition, and duopoly market structures. Students are asked to answer the questions clearly and neatly, as handwriting quality will be considered in grading.

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    This document provides instructions and questions for an individual assignment in Microeconomics II for Oromia State University's College of Development Studies Department of Economics. It outlines the main reference materials to use, warns against copying, and sets a deadline of April 30, 2016. The 5 questions address topics like the differences between factor and product markets, derived demand, health insurance behavior, monopolistic competition, and duopoly market structures. Students are asked to answer the questions clearly and neatly, as handwriting quality will be considered in grading.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    58 views2 pages

    Micro Economics II Assignment 2023 Regular

    Uploaded by

    feyisasori54
    This document provides instructions and questions for an individual assignment in Microeconomics II for Oromia State University's College of Development Studies Department of Economics. It outlines the main reference materials to use, warns against copying, and sets a deadline of April 30, 2016. The 5 questions address topics like the differences between factor and product markets, derived demand, health insurance behavior, monopolistic competition, and duopoly market structures. Students are asked to answer the questions clearly and neatly, as handwriting quality will be considered in grading.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Oromia State University

    College of Development Studies


    Department of Economics
    2014 Entry, 2016 A.Y 2nd year 1st Semester Micro Economics II
    Individual Assignment for Regular program
    Read and refer the main reference materials indicated for this course.
    Copying directly from other group will result zero point
    Last submission date will be 30/04/2016 E.C (09/01/2024)
    The assignment will be weighted from 20%
    Write your answers clearly and neatly, because, Neat hand writing has a value!!

    Questions
    1. How do factor markets differ from the product market?
    2. It has been argued that the demand for factor is derived demand. Explain this concept with the
    help of the demand for labor by Fincaa’aa (Fincha) Sugar Factory assuming the factory is
    privately owned?
    3. Suppose there are two individuals Monet with high level health problem and Lense with low
    level of health problem and each person knows himself but the others do not.
    Furthermore, they have access to health insurances at the same rate payments. How does
    each of these behave? What type of problems may arise?
    4. Assume a firm engaging in selling its product and promotional activities in monopolistic competition
    face short run demand and cost functions as Qd=20-0.5P and TC= 4Q2-8Q+15, respectively. Having
    this information
    a) Determine the optimal level of output and price in the short run.
    b) Calculate the economic profit (loss) the firm will obtain (incur).
    c) Show the economic profit (loss) of the firm. Note that the total shaded area must be equal to the
    profit (loss) obtained in B above.
    5. Assume that the market demand and cost functions of the duopolies are

    P =100 - 0.5Q, where Q = q1+q2, TC1= 5q1. TC2 = 0.5q22.


    Given these answer the questions that follow
    a) Determine the short run equilibrium output of each duopoly ignoring their interdependence
    (with naive assumption)
    b) What is the short run market price?
    c) Find the demand functions of the duopolies (the reaction curves or graphic solution of
    Cournot’ model and draw) and show the short run output levels.
    d) Calculate the short run profits of each duopoly and the industry profit.
    e) Verify the economic profit of each duopoly graphically
    f) Explain the relationship between output and MR in the short run.
    g) Calculate the long run equilibrium output of each duopoly, market price, and economic
    profits of each firm and the industry profit as a whole

    With regards!!
    Tekiyu Adem (MSc)
    Course Instructor!!

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