Microeconomics Answers

Using the Structure Conduct Performance (SCP) paradigm, discuss the current ‘state of affairs’ o of the following South African industries.

- Banking Industry

- Telecommunication Industry

- Electrical Power Industry

- Fast Foods Industry 

 Malita has K150 of disposable income to spend each week and cannot borrow money. She buys Milk balls and a composite good. Suppose that Milk balls cost K2.50 per bag and the composite good costs K1 per unit.Sketch Malita’s budget constraint.What is the opportunity cost, in terms of bags of Milk balls, of an additional unit of the composite good?Suppose that in an inflationary period the cost of the composite good increases to K1.50 per unit, but the cost of Milk balls remains the same. Sketch the new budget constraint.What is the opportunity cost of van additional unit of the composite good?Suppose now Malita demands a pay raise to figjht the inflation. Her boss submits and raises her salary so that her disposable income is now K225 per week. Sketch the new budget constraint. Is Malita better off?What is the opportunity cost of an additional unit of the composite good?

Definition of rationing and signaling.

Ashima has rs 88 with her. She intends to purchase chocolate and ice cream with this money.The market price of chocolate and ice cream per unit is rs 8. The total utility schedule for her is given below. Find out how many chocolates and ice cream should Ashima purchased that she will get maximum satisfaction

Assume perfectly competitive CNG market if government intervention in market mechanism and set the price below the market clearing level what will be the resulting outcome of this policy?

If demand increases and supply declines the equilibrium price and quantity will both increases. Explain true or false?

5. A company in a purely competitive market has a short run total cost function given by

TC = 50 + 4Q + 1.5 Q². The unit price of the company’s product is Br. 13. A economist working on the efficiency of the company suggested that it has better shut down the business. Do you agree? Explain.

Why was agricultural sector declared as a critical industry and exempt from the hardest lock down regulations

how did South Africa overcome the public wage bill crises

1. What will be the elasticity of resource demand in the following cases? Describe each case. (6 marks)
2. unit wages rise by 10 percent and the number of employed workers falls by 5 percent.
3. unit wages rise by 4 percent andthe number of employed workers falls by 6 percent.
4. unit wages rise by 3 percent and thenumber of employed workers falls by 3 percent.