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Distinguish between the following market structures by examining three (3) characteristics each of firms in these market structures:
➢ Perfect competition
➢ Monopolistic competition
➢ Monopoly
Explain the long run average curve and how it relates to returns to scale.
Define the following economic terms according to costs and production of a firm:
3.1.1 Total product
3.1.2 Average product
3.1.3 Marginal product
If the government wishes to make its population pursue a healthier lifestyle by creating a reduction in the demand for packets of cigarettes, examine and discuss how this can be implemented without government having to directly increase the price of a packet of cigarettes. Motivate your answer with a diagram.
Assume the equilibrium price in a free market for an office table is R320,00. If the price of the table moves up to R400,00, explain how the market for this piece of furniture moves from disequilibrium to equilibrium.
Distinguish between a movement along the demand curve and a shift of the demand curve.
Explain the meaning of the following concepts in terms of the production possibility frontier.
1.2.1 Attainable points of production
1.2.2 Unattainable points of production
1.2.3 Inefficiency
List the four main factors of production. For each of the factors of production, evaluate its use in your country.
List the properties of homothetic and linearly homogeneous production function in details?
What effect will a reduction in commodity price have on the input demand curve of the firm give in detail ?
