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day of marketing in 2020, in August 2020, the demand for peach is now given
as QD = 200 -3P. From the statement above tell in one sentence the change in
demand; what did you consider as the indicator? Write down any five factors
responsible for the change in demand. Support your answers by sketching the
equations above on the same graph. CR,10 Marks
b)
Describe the equilibrium condition of a consumer who consumes Kenkey
and fish when faced with a given income and relative prices of the goods.
Starting from equilibrium, how would the consumer respond to:
i. A rise in the price of kenkey?
ii. A fall in the price of fish?
Explain the Law of diminishing return and why is it applicable especially in agriculture sector? with the help of graph
- In a perfectly competitive market, A. there can be few or many buyers and sellers.
- B. government intervention is needed to ensure that prices are fair for consumers.
- C. the price can be driven upward by suppliers holding back on goods and services.
- D. each participant is too small to affect the market price.
- Which one of the following statements is incorrect? Under perfect competition A. average revenue is always equal to marginal revenue.
- B. marginal revenue is always equal to the price of the product.
- C. average revenue is always equal to the price of the product.
- D. marginal revenue is always equal to marginal cost.
Nimbus, Inc., makes brooms and then sells them to customers. Here is the relationship between the number of workers and Nimbus's output in a given day:
Workers:
- 0 worker
- 1 worker
- 2 workers
- 3 workers
- 4 workers
- 5 workers
- 6 workers
- 7 workers
Output:
- 0 broom
- 20 brooms
- 50 brooms
- 90 brooms
- 120 brooms
- 140 brooms
- 150 brooms
- 155 brooms
a.)Marginal product / b.)Total cost / c.)Average Total cost / d.)Marginal cost:
- ?
- ?
- ?
- ?
- ？
- ？
- ？
- ？
a.) Construct the marginal-cost and average-total-cost curves for Nimbus. Explain diminishing marginal product and explain when does Nimbus experience diminishing marginal product using the cost curves below.
Suppose that Jane spends his entire income on good X and Y. The marginal
utilities of both good X and Y are independent of the amount consumed of other
good. The price of X is $2 per unit of X and the price of Y is $3 per unit of Y.
A distribution of the total utilities of goods X and Y consumed is given below.
Distribution of Total Utilities for Good X and Y for Jane.
Number
of Units
Consumed
Total Utility for X Total Utility for Y
1 20 24
2 38 45
3 54 63
4 68 78
5 80 87
6 90 90
Provided Mr. Jane has a monthly income of $ 24. How many units of
Good X and Good Y should Mr. Jane buy?
National dental clinic specializes in root canal operation without administration of pain-killing drugs. If the output (Q) is measured as number of root canals performed on daily basis, define the short run measures of costs: FC, VC,TC,MC,AFC,AVC,ATC Do the necessary calculations and fill the spaces in the table given below:(Copy & Complete the table below in your answer sheet only) [5]
Q FC VC TC MC AFC AVC ATC
1 $13 $38
2 $28
3 $70
4 $64
5 $22
6 $108
7 $133
8 $20
Question # 2 Answer the following questions. (Explain graphically and assume all necessary figures to support your answer where necessary) [05]
I. Explain graphically how indifference curve analysis can be used to derive a demand curve?
II. Explain the Law of diminishing return and why is it applicable especially in agriculture sector?
A monopolist firm has the following total cost function and demand function and show your calculation.
Quantity demand price total cost
5 8 20
6 7 22
7 6 25
8 5 29
9 4 34
10 3 40
Explain what price will be charged and what output will be produced.
