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Step-by-Step explanation

According to the question,


 
Ans - 2(A) for maximum profit no. of journalist will be  7or 8
 
No. of articles per month will be producing 84(if 7 journlist) ,92(if 8 journlist ) for
maximum profit
 
maximum earning per month  will be = ad revenue per article * No. of articles per
month = 375*92 = 34500 €
 
total profit = maximum earning -( wage for 7 journalists + office building and utilities
cost )
 
= 34500 -(3000*8+8000) = 2500 €
 
how i reach profit maximum level - by plotting graph graph between No. of Journalists
and No. of articles per month where the slope was maximum the profit will be maximum
and the slope was maximum at 7,8
 
Ans -2(B)  now the number of maximum employees will be = 3 or 4 and other were got
fired
 
now new maximum earning to maximum profit
 
= ad revenue per article * No. of articles per month =250*54= 13500 €
 
total profit= new maximum earning- wage of journalists*4 =13500-12000 = 1500 €
 
if the number of journalist was same as before and the ad revenue was less than before
than maximum earning was less or equal to the total salary of journalists so the website
owner has to pay the salary from his own pocket and the profit was zero or in negative
and that is why the journalists were got fired

Answer:
2A
Fixed costs = € 8000
Variable cost = Number of journalists* €3000
Total cost = fixed costs + variable costs
Marginal costs = Change in total costs/ Change in articles per month
Step-by-Step explanation
2A
Fixed costs = € 8000
Variable cost = Number of journalists* €3000
Total cost = fixed costs + variable costs
Marginal costs = Change in total costs/ Change in articles per month
The marginal revenue is €375. The profit-maximizing and hence equilibrium is where MR
= MC
Thus, business was producing 92 articles.
Total cost = €32000
Total revenue = 92*375 = €34500
Profit = Total revenue - Total cost
Profit = €34500 - €32000
Profit = €2500
 
2B 
After lockdown, the new cost structure becomes:

Marginal Revenue = €250


If the firm care for profit maximization, it will produce where MR = MC, thus,
It will produce 54 articles per month and will hire 4 journalists.
Prior to lockdown it was producing 92 articles and was hiring 8 workers.
Thus, the firm will fire 4 journalists.
Total costs = €12000
Total revenue = 54*€250 = €13500
New Profit = €13500 - €12000
New Profit = €1500
Journalists were hired because the addition to total revenue was less than the
addition to total costs if they were not hired. This reduced profits. Profits are
maximized when the addition to total revenue equals additional to the total cost.
Thus profit-maximizing condition is the firm should operate where MR = MC. If MC
>MR firm should lower its production. If MR >MC then the firm should increase
production.

It is true that the COVID-9 Situation has severely impacted the People lives affected
economies across the globe whether developed country or undeveloped. India has also
been untouched with the COVID-9 negative effects. In India Sectors like entertainment,
Tourism, Travels, Cinemas have been hit the worst the most.
Since in this situation whole India was in lockdown in major country for a long period for
the sectors like cinema, Travels where airplane companies i.e., Indigo, jet airways, Go
air India effected, Tourism was also effected since everyone restrained them from
travels. Although Digital devices were seen in India with less impacted since COVID-9
gave rise to digitalization and increase the demand of the digital products in India.
Step-by-Step explanation
It is true that the COVID-9 Situation has severely impacted the People lives affected
economies across the globe whether developed country or undeveloped. India has also
been untouched with the COVID-9 negative effects. In India Sectors like entertainment,
Tourism, Travels, Cinemas have been hit the worst the most.
Since in this situation whole India was in lockdown in major country for a long period for
the sectors like cinema, Travels where airplane companies i.e., Indigo, jet airways, Go
air India effected, Tourism was also effected since everyone restrained them from
travels. Although Digital devices were seen in India with less impacted since COVID-9
gave rise to digitalization and increase the demand of the digital products in India.
 
3A
India experienced a unemployment sector specific unemployment in the COVID-9
times .Sectors like cinema , Entertainment , Tour and travels , Tourism , Hit hard and
people related to these sectors employed were deprived of their employment as either
they were lay off by the companies or pay cut was also seen if no lay off in any company
.Medical sectors seen a growth in employment , digital devices manufacturing
companies were seen having a growth since the demand suddenly raised a lot for those
devices .Work from home gave rise to buy digital product for everyone at home .
 
3B
The recession is sector specific as tour travels, entertainment sector, cinema had big
supply and less demand. No one was ready to pay for these industry recessions was
sectoral specific while surge in the equipment digital grew as everything was work from
home.
 
3C
The aggregate demand increased since there was unemployment but money supply by
getting loan on less interest on easy terms grow and aggregate supply was on down
side since there was infusion of the capital by the government money supply increase
but due to social distancing norms everywhere in the factory, workers immigration there
were lockdown and hence no production of the goods. this created the supply shock.
 
3D
Aggregate demand will Increase and aggregate supply will Decrease and hence AD
Curve will be shift to Right side and AS Curve will be on Left.

Increased unemployment will decrease the Aggregate Supply and recessions will
decrease the Aggregate Demand. Overall causing the real GDP to decrease and price to
level to be indeterminate, depending on which change is greater (change in AD or in AS)
Step-by-Step explanation
If unemployment increases, there will be less production of goods and services, thus will
decrease the AS. It will also decrease AD because it will cause disposable incomes of
individuals to decrease and thus Consumption (a component of AD) to decrease. As
these continues, firms will earn less, decrease AS more, lesser income for individuals
again, and decrease AD more.
 
I hope this helps. If you have follow-up questions regarding this, don't hesitate to ask!

Answer:
The pandemic like Corona have put the Indian economy in recessionary gap where
actual level of GDP in the economy is below the full employment level of GDP in the
economy. 
Step-by-Step explanation
The pandemic like Corona have put the Indian economy in recessionary gap where
actual level of GDP in the economy is below the full employment level of GDP in the
economy. 
In order to eliminate the recessionary gap, the government should follow expansionary
fiscal policy which involves increase in the level of government expenditure along with
decrease in the tax rate. This will increase government sending and also increase
disposable income of the consumers which in turn increases consumption expenditure. 
This will increase the level of aggregate demand in the economy eliminating
recessionary gap in the economy and moving the economy closer to full employment
level of output.

As part of its expansionary monetary policy, the Reserve Bank should aim to lower the
level of interest rates in the economy, which will in turn raise investment spending and
therefore raise the level of GDP. It can lower the interest rate through lowering reserve
requirements, selling government assets on the open market, lowering the discount rate,
and other measures, among others. Increased investment spending will raise the level of
aggregate demand in the economy, pushing the AD curve to the right and so closing the
level of the recessionary gap in the economy
Step-by-Step explanation
.
The central bank should pursue monetary policies that are expansionary in nature. The
Federal Reserve's monetary policy is intended to address the recession. 
1. Decrease in the reserve ratio provides banks with a greater incentive to lend more
widely, leading to an increase in the money supply and the rate of inflation, as well as a
reduction in the level of unemployment.
2. When the Federal Reserve purchases open market securities from the market, it
injects money into the economy, resulting in an increase in the money supply and,
consequently, an increase in the inflation rate. Increases in wages and unemployment
Falls
When the Federal Reserve system borrows funds from a central bank at a lower interest
rate, the commercial banks lend those funds to the general public at lower interest rates,
increasing the money supply and, as a result, lowering the unemployment rate.

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