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If MR > MC under perfect competition, profit
A. will increase by decreasing production.
B. will decrease by expanding production.
C. will increase by expanding production.
D. is maximised.
the syejumba economy is a very simple economy producing vigayo and gallons of maize. The table below gives production points of the two commodities in the economy
Beer costs R10 per bottle and cigarettes cost R40 per packet. Suppose Vongani buys 8 bottles of beer and 3 packets of cigarettes and that his marginal utility from beer is then 20 utils and that from cigarettes 35 utils
effect for normal good. Also derive Engel curve for a commodity measured on horizontal
axis.
prices of commodities X and Y are Rs.20 and Rs.50 per unit respectively. A household has
Rs.6000 to spend per month on commodities X and Y.
Referring the information mentioned above, answer the following questions.
i. Sketch the household budget line.
ii. Assume that the household splits its income equally between X and Y. Show
where the household ends up on the budget constraint.
iii. Suppose that the household income increases to Rs.10000, sketch the new
budget line facing the household.
iv. After the increase in income, the household spends Rs.1500 on Y and Rs.8500
on X. This implies that X is a normal or inferior good? What about Y good?
Rs.20 per Kg. and price of apple (Pa) is 25 per Kg. When she draws her budget line, it
terminates X axis (where orange is plotted) at 50 units. Find Shushma’s income and slope
of her budget line.
A. Find equilibrium price and quantity
B. Determine whether there is surplus or shortage at price equal to 6
C. What is the change in equilibrium price of demand curve change to Qd= 30- 10P, show the change graphically
Sean is buying salad and pizza for a company lunch. Suppose that a bowl of salad costs $5.00, and a slice of pizza costs $3.00.
Let E
E be the amount in dollars that Sean spends on salad and pizza. If Sean buys S
S bowls of salad and P
P slices of pizza, then the total amount of money he spends (E
E) can be represented by the equation .
Now rearrange the equation you wrote above so that P
P is written in terms of E
E and S
S. The quantity of pizza he buys can be represented by the equation .
Suppose Sean has $30.00 to spend on salad and pizza; that is, E=$30.00
E=$30.00.
Given the following table
Q 1 2 3 4 5 6 7 8
TUA 30 55 75 90 100 100 90 75
TUB 100 180 240 280 300 300 280 260
a. Calculate marginal utility for good A and B
b. Draw the marginal and total utility for commodity A and show the relationship between them.
c. How many units of A and B should be consumed to maximize utility
d. Calculate the total utility at optimal choice
1. The following production function has been estimated for wheat:
where, W = Wheat yield (kg/ha), F = Fertiliser (kg/ha) and L = Labour (hours/ha)
Derive an expression for the least-cost expansion path given that fertiliser costs R12 per kg and labour costs R6 per hour.
#339914 on Dec 2023