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Which one of the following is incorrect under perfect competition
A.Marginal revenue is always equal to the price of the product.
B. Average revenue is always equal to marginal revenue.
C.Average revenue is always equal to the price of the product.
D.Marginal revenue is always equal to marginal cost
Suppose the short run market price a competitive firm faces is birr 9 and the total costof the firm is TC=200+Q+0.02Q2.
a) calculate the short run equilibrium output and profit of the firm
B)drive the MC, ATC,and AVC and calculate the values at the short run equilibrium output
C) calculate the producers surplus at the equilibrium output
D) find the output level that will make the profit of the firm zero
a) calculate the short run equilibrium output and profit of the firm
B)drive the MC, ATC,and AVC and calculate the values at the short run equilibrium output
C) calculate the producers surplus at the equilibrium output
D) find the output level that will make the profit of the firm zero
If a firm producing in long run using capital and labour inputs,how the least cost combination of the input will be determined? show it mathematically and graphically
Describe how firms determine variable input and stage of production in matimatically and graphically
Do monopoly firms always make profit and when should a monopoly firm shut down ?
What is the law of diminishing marginal product?(3 marks)
a. In which stages of production it manifest.
b. What is the logical justification for the law of diminishing marginal
Based on the given information, answer the following questions.
a. Compute the marginal utility of the two goods
b. At what amounts of consumption does diminishing marginal utility starts to occur for the two goods?
a. What do you think is the market structure for meter taxi transportation in Addis? Give your justificationsa.
Wage inequality and globalisation: Has the move towards a more integrated South
African economy brought with it greater demand and supply mismatches
▪ How does globalisations affect the demand for high and low skilled workers across the
globe?
▪ Given that much of South Africa’s economic activity is based on the natural resources, do
you think the country is ready to make the shift to a more technologically driven production
process?
▪ As South Africa has a large contingent of unemployed and low skilled workers how do you
see the integration process affecting the mismatch between the demand and supply
▪ Apart from the mismatches of supply and demand in the labour market, what other factors
are largely contributing to inequality levels within the country?
