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```Maryland International College
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Course: Managerial Economics
Course Code: MBA-692
Credit hrs: 2
Individual Assignment for Managerial Economics (50%)
Instructor Name: Dr. Solomon
Name: ………………………………..
ID: …………………………
General Instruction:
1. Name and ID have to be written on the cover page
2. Try to answer all the questions as clearly as possible
3. Try to do your own (copying from others is forbidden)
4. Submission Date: February 20/2022.
5. Submit only in soft copy format using my email: [email protected]
1
Assignment-I: Answer the following questions properly
made. Was it optimal? If not, why not? How would you adjust price? Compute the profit
consequences of the change.
2. The following general supply function shows the quantity of good X that producers
offer for sale (Qs): Qs = 19 + 20Px - 10PI + 6T - 32Pr - 20Pe + 5Fwhere Px is the price of X, PI
is the price of labor, T is an index measuring the level of technology, Pr is the price of a good R
that is related in production, Pe is the expected future price of good X, and F is the number of
firms in the industry.
a. Determine the equation of the supply curve for X when PI = 8, T = 4, Pr= 4, Pe = 5,
and F = 47. Plot this supply curve on a graph.
b. Suppose the price of labor increases from 8 to 9. Find the equation of the new supply curve.
Plot the new supply curve on a graph.
c. Is the good related in production a complement or a substitute in production? Explain.
d. What is the correct way to interpret each of the coefficients in the general supply function
given above?
3. Describe the different forms of profit? What type of profit forms does your company adopt in