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Maryam Inc. produces leather bound books. The market is highly competitive, with books currently selling for R600. Maryam’s total and marginal cost curves are: TC = 3 000 + 100Q2 MC = 200Q Calculate Maryam Inc.’s profit maximising quantity. Is the firm earning a profit? / Mary
Why are economic problems and issues difficult to resolve? In this time of covid-19 pandemic and its variants, what microeconomic options are available to individuals and consumers in their quest for goods and resources given the loosening of restrictions in the months to come? Cite three major options considered to be necessity for individuals and consumers alike.
Currently, Paula is maximizing utility by purchasing 5 TV dinners (T) and 4 Lean Cuisine meals (L) each week.
Graph Paula’s initial utility-maximizing choice.
Suppose that the price of T rises by $1 and the price of L falls by $1.25. Can Paula still afford
to buy her initial consumption choices? What do you know about her new budget constraint?
Use your graph to show why Paula will chooseto consume more L and less T given her new budget constraint. How do you know that her utility will increase?
Some economists define the ‘‘substitution effect’’ of a price change to be the kind of change shown in part c. That is, the effect represents the change in consumption when the budget constraint rotates about the initial consumption bundle. Precisely how does this notion of a substitution effect differ from the one defined in the text?
If the substitution effect were defined as in partd, how would you define ‘‘the income effect’’ in order to get a complete analysis of how a person responds to a price change?
public choice theory regarding public debt
Suppose the market for cookbooks is a duopoly. The chart below shows a payoff matrix for the two cookbooks producers (2 points). 35 Producer 1’s option Producer 2’s Option Low Price Low Price High Price High Price $20 $20 $80 $1 $1 $80 $100 $100 a. What is the dominant strategy for Producer 1? Producer 2? b. What is the Nash equilibrium
#340153 on Dec 2023