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Given the demand curve for commodity as Q=60-3p where Q is the quantity demanded and P the price per unit . Determine the price elasticity of demand at P= 10
a. During 2009, incomes fell sharply due to the financial crisis of 2008-2009. This change likely led to a decrease in the prices of both normal and inferior goods.
Complete the following sentence: If marginal revenue is positive, total revenue __________; where marginal revenue is zero, total revenue reaches a ________; and when marginal revenue becomes
negative, total revenue __________.
Evaluate Eskom product in terms of
*Time
*Nature of product
*Availability of close substitutes
Analyse Eskom in terms of the characteristics of a monopoly
he makes machine. Here is the relationship between the number of workers and he ’s output during a given day:
Workers
Output
Marginal Product
Total Cost
Average Total Cost
Marginal Cost
0
0
--
--
--
1
20
2
50
3
90
4
120
5
140
6
150
7
155
1) Fill in the column of marginal product. What pattern do you see? How might you explain it?
2) A worker costs $100 a day, and the firm has fixed costs of $200. Use this information to fill in the column for TC (Total Cost).
3) Fill in the column for ATC (Average Total Cost). What pattern do you see? (cf. ATC=TC/Q)
4) Now fill in the column for marginal cost. What pattern do you see? (cf. MC=△TC/△Q)
Describe the role of prices in market economies.
f your opportunity cost of a bottle of wine is $37, which of the following prices would you have to observe in the market in order to sell a bottle of wine?
A. $37.01
B. you would sell a sweater at any of these prices.
C. $37
D. $100
E. $50
what does consumer surplus indicate
profit-maximizing firm in a competitive market is currently producing 110 units of output. It has average revenue of Rs.1000, average total cost of Rs.800, and fixed cost of Rs.20,000.
- What is its profit?
- What is its marginal cost?
- Is the efficient scale of the firm more than, less than, or exactly 100 units?
