Economics Answers

What type of transaction do you create to enter depreciation?
A. Liability
B. Accounts payable
C. Journal entry
D. Long term liability
Explain why the answer is correct.

The total production of the mobile company last week is 195,000 items. The design capacity of the factory of this company is 900 items per hour. The effective capacity of this factory is 160,000 items. The staff of this factory operate 5days/week, 5 and 9 hour shift.
a. Find the design capacity of this factory
b. calculate the capacity utilization of this factory

A general journal entry is made for what reason?
A. Record end-of-year fixed asset depreciation
B. Adjust an inventory quantity
C. Adjust owner's equity
D. Any of these options
Explain why the answer is correct.

Identify the type of market/industry structure that is applicable to the cinema industry in South Africa. Justify your answer by referring to the main characteristics of this market structure. (

You have been appointed as an economic advisor to the principle of Bright Sparks College, a firm
operating in the market for tertiary education. Over the past 18 months the following
simultaneous changes have been noticed in the market for tertiary education:
 A decrease in consumer income;
 An increase in the cost of providing tertiary education services.

Explain, with the aid of a graph, the impact of the above changes on the equilibrium price and
equilibrium quantity in the tertiary education market.

Q.4.2 Explain the concept of non‐price competition in the context of the cinema industry using examples to illustrate your answer.

assume the maket demand is d1, themarket supply curve is s equilibrium is at e. now the market wage rate paid to truckdrivers increases fromr250 to r300. identify the type of disequilibrium that will result from such a wage increase

1) Prince can consume 2 goods X1 and X2 at a price p1 and p2 respectively .Princes preferences are represented by the following utility function U1 (X1,X2) =X1 ,X2 and has an income of M .
a ) Derive Princes Marshallian demand functions for the 2 goods .
b) What are the Marshallian demand curves for the 2 goods if Princes utility changes to U2(X1, X2)=1/8(X1,X2).
c) Derive an expression for the marginal rate of substitution (MRS) between X1 and X2 for U2(X1 ,X2)=1/8(X1 ,X2).

d) Suppose a production function is given by f(k,l) =l ² k ,the price of capital is $10 and of labour $15.What combination of labour and capital minimises the cost of producing any given output
e) The production function of a given product is given by q=50kl. If the price of capital is $120 per day and the price of labour is $30 per day, what is the minimum cost of producing 1000 units of output