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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
a. What is the basic reason for such behavior? Describe in detail with example
a. What is the basic reason for such behavior? Describe in detail with example
“Since there are no close substitutes for the monopoly's product, the monopoly can charge
any price it wishes”.Is it a true or false statement? Give your reasons
Give at least 6 examples of comparative advantage and 6 examples of absolute advantage here in the Philippines using your own words.
Factors to consider before increasing priçe of commodities
a) An auto-parts company of Australia wants to establish a plant outside Australia. The alternatives are Fiji, PNG, Samoa and NZ. Given its financial situation, the company is constrained to set up only one plant outside Australia. Assume that the setting-up costs and the operating costs of a plant in any of these four countries are the same. The marketing research department offers a projection that if the plant is set up in Fiji, PNG, Samoa or NZ, it will fetch a turnover (revenue) of $2.5 million, $2 million, $2.3 million and $2.8 million respectively. Of course, given these choices the company will opt to set up a plant in NZ. What is then its opportunity cost?
a) John is an economist working for Ministry of Tourism in Suva, earning $30,000 per year. There are, say, three alternative careers available for John. He can work for Reserve Bank or Ministry of Economy in Suva for $25,000 and $28,000 per year respectively. Still another alternative is that he can set up his own economic consultancy firm, expecting to make a profit of $27,500 a year for himself. What is John’s opportunity cost of working in Ministry of Tourism?
Briefly, discuss how economist test theoretical economic models?
