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Pieces of pizza total Utility marginal utility
Qx TUx MUx
0 0
2 8
4 14
6 18
8 20
10 20
12 18
Required:
A. Compute for MUx. Show your solution
B. Based on the table , how many pieces of pizza the consumer will ,consume to maximize his satisfaction
2. Given the following information
Price of burger(Pb)=P50
Price of spaghetti (Ps)= P75
MU of burger(MUb)=180 utils
MU of spaghetti(MUs)= 225 utils
Required:
A. Compute for the consumers equilibrium
B. What is the decision of the consumers ? Will he buy burger or spaghetti ? Justify your answr.
As a Production Manager of a manufacturing firm that produces both an elastic good and an inelastic good, illustrate to a new board of the organisation the relationship between price elasticity of demand and total revenue, and how the elasticity concept can be used to maximise revenues of both commodities?
- Which of the following is not a characteristic of oligopoly?
- A.There are few sellers and many buyers in the industry.
- B.To reduce uncertainty in the market, firms may collude.
- C.Imperfect information
- D.A firm in an oligopolistic market makes pricing decisions independently of the pricing
Explain the necessary conditions for price discrimination and analyse the allocation of output in two different markets by a monopolist
The equilibrium level of income is
Use the following demand schedule on pens to answer the question.
Price Quantity
19 10 000
18 15 000
17 18 000
Elas table pens What is the price elasticity of demand for pens in the price range R19 to R17?
1. What are the steps (methodology) that we need to follow in econometric analysis?
v> Combination Tablet (units) Coffee (units)
A 0 10,000
B 100 9,000
C 200 7,500
D 300 5,500
E 400 0
B) Explain how the opportunity cost changes when the production of tablets is increased
progressively from 0 units to 400 units. Give a reason for the changes in opportunity cost
observed.
(4 marks)
C) If a national lockdown reduces the supply of workers in both the tablet and coffee
markets, use a diagram to show how the production possibility curve of the economy
changes. Explain your answer briefly.
(4 marks)
D) If an improvement in technology is seen in the production of coffee, use a diagram to
show how the production possibility curve of the economy changes. Explain your answer
briefly (4 marks)
Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the result?
#340153 on Dec 2023