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Diagram to explain why all giffen goods are inferior but not all inferior goods are giffen good
i. Suppose that a unit of sugar is priced at R5 and the price of a unit of salt is R10.
Compute the weighted marginal-utility for sugar and salt and enter these values in
the table.
[04]
ii. Given Kagiso’s R30 budget, how many units of sugar and salt will be purchased?
Explain how you arrived at this answer.
[02]
iii. Suppose the price of salt stays constant at R10 and the price of sugar falls to R3.
How many units of sugar will be demanded at this price? Carefully explain your
reasoning.
[03]
Sonja Cc is a small firm that makes outfits for customers tailored for their functions, in May 2021 she has ordered for a bridal party (BP)
The details for the job (BP) are as follow:
Direct materials: 10 units at N$108.
Direct labour: 16 hours for department A
10 hours for department B
14 hours for department C
The labour hours are budgeted at 40, 25 and 30 in departments A, B and C respectively.
The firm expect a profit of 40% on the total cost of BP.
Required:
a)Calculate the predetermined overhead allocation rate (OAR) for each department using labour hours as a base for such allocation.
b)Calculate the cost of a bridal party (BP)
c)Calculate the selling price of the bridal party (BP).
I’m economic theory, a clear distinction is made between a movement along the demand curve and a movement of the demand curve. I’m light of this statement, provide the correct graph to illustrate and explain an increase in the price of the product
Name and describe 3 economic costs that a city can encounter when they have a Sinkhole?
Name and describe three tax methods used by government to regulate unfair monopoly practices
Explain why any firm maximizes profit or minimizes losses when the marginal cost is equal to marginal revenue?
Use a diagram to explain what would happen to the R/$ exchange rate, ceteris paribus, if the demand for dollars increases.
Do u agree that for a monopoly firm,price is equal to its marginal revenue. Explain why or why not.
given the demand function p=1000-Q express TR as a function of Q and hence sketch a graph of TR against Q. What values of Q maximizes total revenue, and what is the corresponding price?
