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compute the maximum revenue combinations of products using the maximum revenue criterion (, )
The following production function has been estimated for wheat:
W = 4 F^(0.5). L^(0.25)
where, W = Wheat yield (kg/ha), F = Fertiliser (kg/ha) and L = Labour (hours/ha)
A) If the wheat producer has a budget of R9 000 to spend on fertiliser and labour, how much of each input should he use and what is the quantity of wheat he will produce? [4]
B) Derive expressions for the value of marginal product (VMP) of fertiliser and labour given that wheat sells at R72 per kg.
Namibia’s small population of about 2.3 million is a curse rather than a blessing”. Use the
arguments of the neoclassical economic theory to discuss this statement.
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
#339914 on Dec 2023