Economics of Enterprise Answers

Public economics is the study of the nature, principles and economic consequences of expenditure, taxation and financing, and regulatory action undertaken by the non‐profit‐making government sector of the economy” (Black, Calitz, & Steenekamp, 2017).
What is it that the government tries to achieve through its expenditure, taxation and financing, and regulatory action in the economy?
(5)
Q.2.2
Provide any FIVE examples where the government uses its regulatory power to manage the South African economy.
(5)

Suppose we have the consumption function C=10+ tha marginal prospensity to consume is

Why we need development indicators

Which one of the following statements is INCORRECT? (2) (1) Trade unions act as monopolistic suppliers of labour. (2) Labour markets are sometimes monopolistic, meaning there is only one major employer. (3) Employers and employees usually have perfect knowledge about the labour market conditions in which they operate.

-Explain the Gross Domestic Product (GDP):

- Explain the Consumer Price Index (CPI):

Discuss and motivate whether the following market structures can engage in price discrimination.
1 Perfect competition
2 Monopoly

Explain the kinked demand curve theory of an oligopoly. Include in your answer a discussion of a contemporary oligopoly.

1)For a monopolistic firm demand and total cost (TC) functions are as follows:
q = 230 – (1/2) P and TC = 20 + (1/2) q^2
What is the equilibrium level of P (P*) that maximizes the profit of firm?

2)) If the total cost function (TC) of a competitive firm is TC = 20 + 0.2 Q^2 and the price is (P) = 400 what is the equilibrium level of quantity (Q*) that maximizes profit?