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Economics of Enterprise
A government reduces tax on carrot. This causes the price of carrots to fall by 50%. Demand then rises by 50% . The price elasticity of demand for carrots in this case is?
Economics of Enterprise
5.1. Complete the table. (24)
Quantity Price Marginal revenue Fixed cost Total variable cost Total cost Average cost Average variable cost Marginal cost
1 4800 200 3000
2 4500 300 4 100
3 4100 400 1200
4 3600 500 500
5 3000 600 9800
6 2350 650 5700
7 1650 700 12100
8 900 750 2200
9 100 800 5000 2000
10 0 100 5000 1600
Quantity Price Marginal revenue Fixed cost Total variable cost Total cost Average cost Average variable cost Marginal cost
1 4800 200 3000
2 4500 300 4 100
3 4100 400 1200
4 3600 500 500
5 3000 600 9800
6 2350 650 5700
7 1650 700 12100
8 900 750 2200
9 100 800 5000 2000
10 0 100 5000 1600
Economics of Enterprise
Capacity level Total product Long-run total cost Long-run average cost
A 15 000 56 500 3.77
B 25 000 80 600 3.22
C 40 000 120 000 3.00
D 55 000 140 000 2.55
E 70 000 168 650 2.41
F 95 000 210 000 2.21
G 120 000 265 200 2.21
H 145 000 320 450 2.21
I 160 000 390 750 2.44
J 185 000 490 340 2.65
K 210 000 590 640 2.81
Use the data provided in the table together with any other calculations you deem
necessary in order to help Thabo to classify the capacity levels into the categories
where Tech World will experience economies of scale, constant returns to scale and
diseconomies of scale. Provide reasons for each of the classifications.
A 15 000 56 500 3.77
B 25 000 80 600 3.22
C 40 000 120 000 3.00
D 55 000 140 000 2.55
E 70 000 168 650 2.41
F 95 000 210 000 2.21
G 120 000 265 200 2.21
H 145 000 320 450 2.21
I 160 000 390 750 2.44
J 185 000 490 340 2.65
K 210 000 590 640 2.81
Use the data provided in the table together with any other calculations you deem
necessary in order to help Thabo to classify the capacity levels into the categories
where Tech World will experience economies of scale, constant returns to scale and
diseconomies of scale. Provide reasons for each of the classifications.
Economics of Enterprise
Why does an indifference curve slope towards the right?
Economics of Enterprise
Assume the aggregate demand of an economy is rising at 3% but its productive capacity is only rising at 2%. Discuss the type of inflation this would lead to? Use a diagram to motivate your answer.
Economics of Enterprise
Explain how fiscal policy can be implemented if an economy is in the downswing of a business cycle
Economics of Enterprise
Explain the meaning of a LAC curve
Economics of Enterprise
Discuss and motivate whether the following market structures can engage in price discrimination? 1) Perfect competition. 2) Monopoly
Economics of Enterprise
Explain the kinked demand curve theory of oligomony. Include in your answer a discussion of a contemporary oligomony
Economics of Enterprise
A production A production possibilities frontier can:
shift outward but not inward.
You Answered
none of the above
shift inward but not outward.
Correct Answer
shift inward or outward.
shift neither inward nor outward.
possibilities frontier can:
shift outward but not inward.
You Answered
none of the above
shift inward but not outward.
Correct Answer
shift inward or outward.
shift neither inward nor outward.
possibilities frontier can:
