Microeconomics Answers

1.How eskom as a monopoly has impacted on the South African economy, since 2009 (50)

Discuss some other products that sustains product differentiation through substantial advertising and promotion expenditures

Diogo has a utility function U(B, Z) = AB^αZ^β, where A, α, and β are constants, B is burritos, and Z is pizzas. If the price of burritos, p_B, is $2 and the price of pizzas, p_Z, is $1, and Y is $100, what is Diogo’s optimal bundle?

1. Critically discuss the positive and the negative effects of COVID-19 on 

the South African economy. 

2. In your opinion, should local industries in South be protected 

against world competition? Discuss fully. 

Discuss the current state of affairs of the south african banking industry

https://www.google.com/amp/s/slate.com/human-interest/2014/03/meat-racket-excerpt-how-tyson-keeps-chicken-prices-high.amp

Questions on Case Study 2 (10 marks) 

1. Describe the type of market structure mentioned in the above article and discuss its features. (5 marks) 

2. Elaborate on how consumers are affected by the actions undertaken by these firms in the industry as described in the case study. Provide a local example if applicable to this scenario. (5 marks)  

The link which I provided is the case study. Please answer the questions by reading the case study through the link. Access case study from the link please. Thank you!

https://www.washingtonpost.com/news/wonk/wp/2014/11/05/the-shaving-industry-is-in-a-rough-patch-even-before-no-shave-november/

Questions on Case Study 1 

1. Does this article discuss the demand or supply side of the market? Elaborate on the factor affecting demand/supply as mentioned in the above case study. (5 marks) 

2. Discuss strategies developed by some of the firms to attract more customers to their product. (5 marks) 

The case study is from the link above which I have pasted. Please and these questions by reading the case study through the link.

4. The total cost (TC) and demand equations for a monopolist is

TC=100+5Q²

P=200-5Q

a)     What is the profit-maximizing quantity?

b)     What is the profit-maximizing price?

You are provided with the following demand and cost information for a monopolist.

P=60-0.25 Q and TC=Q2+40Q+50 Where P is price, Q is quantity of the product and TC is total cost. Determine the profit maximizing level of output and prices. (10Marks)

Exports

A) bring foreign exchange, and thus they are registered as credit in the balance of payments.

B) bring foreign exchange, and thus they are registered as debit in the balance of payments.

C) cause foreign exchange to leave the country, and thus they are registered as credit in the balance of payments.

D) cause foreign exchange to leave the country, and thus they are registered as debit in the balance of payments.