Economics of Enterprise Answers

Abby purchased 100 shares of her dad's favorite stock for $25.80 per share exactly 1 year ago, commission free. She sold it today for a total amount of $2865. She plans to invest the enrire amount

Sector of the market covid directly impact on

Use the following demand-and-cost information vis-à-vis three firms: Firm A, Firm B, and Firm C operating in three different market structures in the short run, to answer the questions that follow.

Firm A Firm B Firm C

Price where output is equal to zero 2000 1500 60

Profit maximizing price (R) 1000 ? 60

Profit maximizing output level (units) 30 50 2500

MC at profit maximizing output level (R) ? 275 60

ATC at profit-maximizing output level (R) 1300 ? 36

AVC at profit-maximizing output level (R) 900 300 ?

Minimum ATC (R) 1200 320 30

Minimum AVC (R) 800 280 3

Price at allocative efficient output level 160 580 ?

The allocative efficient level of output (units) 150 200 2500

Learner Index 0.8 ? 0

Total Fixed Cost (R) ? 2000 75000

Total Variable Cost at profit-maximizing output level 27000 15000 ?

Mark up ? 4 ?

4.1. Does Firm A, Firm B or Firm C operate in a perfectly competitive market?

Firm (A/B/C)______________

4.2. Calculate each of the following for Firm A:

MC = R______

Profit/loss = R_____

TFC = R_____

Consider the following total cost function: TC = 2/3Q3 – 10Q2 + 200Q + 50 A) Identify the FC and VC function? B) Calculate AVC, AFC, ATC, and MC functions C) Determine the level of output at which AVC reaches minimum point and the minimum AVC at that level of output?

Which of the following does not cause an increase in supply? A. An increase in the commodity’s price. B. An improvement in technology. C. A reduction in factor prices. D. A decrease in the cost of materials.

Which one of the following is not a true statement? A. Nominal GDP is a measured by removing the effect of price change on GDP. B. Real GDP is the value of currently produced goods and services measured at constant price C. Nominal GDP does not compare a country’s economic performance over time. D. Unproductive activities should be excluded from National Income Accounting.

MC curve and AC curve are the mirror reflections of A. AVC and AFC B. AVC and TVC. C. MP and AP. D. TP and AP.

Which of the following does not cause an increase in demand? A. An increase in consumer’s incomes. B. An increase in consumers’ preferences for the commodity. C. A reduction in the commodity’s price. D. A reduction in the price of a complementary good. A supply schedule shows the relationship between the quantity supplied over a given period of time and A. Factor prices. B. The price of the commodity. C. Technology. D. The prices of other commodities related in production.

Which of the following statements explains Peak in Business Cycle? A. Total output declines, national income falls, and business generally decline. B. There is an excessive amount of idle productive capacity. C. The economy marks the end of economic expansion and the beginning of recession. D. When expansion of the economy reaches maximum, and the economy once again come to another peak.