Microeconomics Answers

Explain why denel is regarded as a monopoly in South Africa

The Minister of Transport released its Festive season road accident statistics which shows that the probability of drivers committing an accident is 8% with utility U(H) = √H, where H stands for year income. The Minister further claims these Festive season road accidents cost the state (in terms of claims lodged) an average of R84 000 per annum. The Road Accident Fund is an insurance scheme providing compulsory indemnity cover to victims of vehicle accidents and taxi drivers. 

(a) Suppose that an average commuter earns R84 000 per annum. What is the expected utility of each commuter if the driver decides not to take insurance.

(b) What is the cost of insurance policy to the Road Accident Fund?       

Two dairy farmers produce milk for a local town with local milk demand given by Q = 100 - 1/3P (P denotes price measured in Rands, Q denotes the quantity measured in liters). Both farmers have the same cost function given by TC = 150 + 2Q (where Q denotes output).

 (a) Determine the reaction function of each farmer.  

What is the point of entering a perfectly competitive industry if it is simply to earn zero profits anyway?" Discuss this statement with reference to the long and short run, as well as to heterogeneity across firms. 

you operate balvinders best broccoli boutique in burnbay BC in a perfectly environment . You have the folleintbinformation. you want to decide how much you should produce, and what price you should charge. conplete the chart , and answer the question below. Use rwo decimals in you answers. Hint conplete you cost calculations first and review the lecture notes o the relationship of the MC curve to the AATC and AVC curves then to calculate your revenue values remember that this is a perfect copetition . hey plz snswer this question in very detail calculation so that i can understand how this answer come what os its formuls and answer with telling how you find the price i tried but i m not able to find price i know other how to gind but due to price i m not sble to solve this question

Why was agricultural sector declared as a critical industry and exempt from the hardest lockdown regulations?

       State any two uses of the study of microeconomics

Identify and explain at least three methods of stealing from the government. Give a specific example of each method.

1. Explain the various classification structures for an agency’s cost estimation and give a specific example of each.

2.Explain the five types of budget authority.    

Consumer surplus indicates that