Other Economics Answers

Gunn&Moore manufactures cricket bats at one of its plants. The fixed cost amounts to R1 600 000 per annum. The bats are sold at R400 each and the variable cost per unit amounts to R150. The break-even point of this plant is ____________ units.

Select one:

a.

2 909

b.

2 300

c.

4 000

d.

6 400

Although parking meters in urban centres may yield little revenue because of the costs of installation and the employees who check and maintain them , most cities still regard them as essential for proper traffic flow. Explain why this is so using the concepts of demand, supply and price.

5. Using the example of your favourite soft drink, explain how your demand for it can be derived from the utility you receive from its consumption.

4. A demand curve normally slopes down from left to right. What does this indicate about consumer behaviour with regard to price and quantity demanded ? How does marginal utility help to explain this consumer behaviour and thus, the direction of the demand curve ?

A student newspaper has determined that it’s coefficient of demand is less than one at prices below $1.25 but greater than one at prices above $1.25. Considering the product, why do you think elasticity changes?

13.Assume the total cost of a producer of a commodity in the short - run is given by the equation:

TC = 30,000 + 15Q2 + 5Q Where: TC = total cost, Q = level of out put

Using the given total cost find equations for:

(A)- Variable costs (B) - Fixed costs (C) - Average variable costs

(D) - Average fixed costs (E) - Average costs (F) - Marginal costs

1. Suppose, for a perfectly competitive firm, marginal cost function is given by:

   MC = Q2– 2Q + 20

Find the quantity produced (Q) at the equilibrium level of output, if price per unit of good produced is Birr 44

The population in country C decreases, due to lower birth rate. At the same time there is an increase in the cost of fertilizer which is used to grow vegetables. Explain how the market for vegetables will be affected by these changes. Clearly indicate how the equilibrium price and equilibrium quantity will be affected by these changes. Make use of a combinations of diagrams and verbal explanations.

Due to substantial increases in prices in Country A, the real income level of the population in Country A decreases, show a diagram how the decrease in the income level in Country A will affect the demand for meat which is a normal good. Also indicate how the equilibrium quantity of meat will change in Country A

1.   Described the categorisation of the subject matter as stipulated in the CAPS Economics policy. (12) 
2. Explain with an applicable example the economic approaches in studying economics.