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What is the law of diminishing returns? Use the following data to demonstrate the three stage production function :
Inputs of variable resource 1 2 3 4 5 6 7 8 9 Total Output 10 25 37 47 55 60 63 63 62
a. Calculate Average Product and Marginal Product. b. Using above information draw a two panel diagram to illustrate the stages of production. c. Which stage would represent optimum production?
L Q AP MP
0 0 - -
1 8 8 8
2 22 11 14
3 60 20 38
4 96 24 36
5 132 26.4 26.4
6 132 22 0
The variable cost (VC) of the business consists of labor costs and raw material costs. The wage of labor is w = 3.000 monetary units and is fixed for each worker.
The cost of raw materials (c) is fixed and equal for each unit of product produced.
Find the fixed cost (FC) of the business if at the level of production of the 5th worker the marginal cost (MC) is 525 monetary units and the average total cost (ATC) is 700 monetary units.
The variable cost (VC) of the business consists of labor costs and raw material costs. The wage of labor is w = 3.000 monetary units and is fixed for each worker.
The cost of raw materials (c) is fixed and equal for each unit of product produced.
Find the fixed cost (FC) of the business if at the level of production of the 5th worker the marginal cost (MC) is 525 monetary units and the average total cost (ATC) is 700 monetary units.
how does the government use concepts of elasticity while deciding which goods to tax and how those decisions impact the government revenue
Demand is described by the equation: Qd = 200-5P, and supply: Qs = 35P-200. The government introduced a per-product tax on the producer in the amount of t per unit of goods. As a result, the equilibrium quantity (q) decreased by 17,5%. Find the amount of tax (t)
Let the PPFs of the factories look like this:
1 plant: y = 40-x
2 plant: y = 100 - 4x
3 plant: y = 60 -2x
Find the maximum number of x if you want it to be exactly the same as y.
Let assume, Ann and Bob plan a common activity during lock down. Their alternatives:
- А - watch a movie;
- B - read a book;
- C - attend a lecture online;
- D - create a TikTok video;
- E - cook a special dish.
Ann’s preferences are designed in such way that utility from alternative A is 22, B - 16, C - 18, D - 25, E - 30.
Bob’s preferences are designed in such way that utility from alternative A is 21, B - 16, C - 4, D - 3, E - 7.
Choose all Pareto-efficient alternatives.
Question 2
a. Mention any 5 concepts used interchangeably with:
i. Lending rate. (5)
ii. Strict monetary policy (5)
iii. Accommodative monetary policy (5)
b. Mention the types of inequality that were seen most during the period of hard lockdown in South Africa.
a. Discuss South Africa as:
i. An upper middle income economy.
ii. A commodity-based economy.
iii. Small open economy.
iv. Dualistic economy. vs. safe-haven economy.
a.Clearly explain any 3 characteristics of a developing economy. (9)
b. Mention any five challenges to the South African economic growth. (5)
c. Which challenge is at the top list of South Africa’s priorities and why? (3)
d. Mention the three main rating agencies. (3)
