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a) Explain the relationship between marginal cost, wage and marginal product of labour (9).
b) Derive the relationship between marginal cost, wage and marginal product of labour (16)
a) Use a diagram discuss and explain why marginal cost above its minimum average variable cost is called supply curve. (6)
b) Explain competitive firm short –run shutdown decision rule. (4)
a) Use a diagram discuss and explain why marginal cost above its minimum average variable cost is called supply curve. (6)
b) Explain competitive firm short –run shutdown decision rule. (4)
Suppose a consumer has income of $120 per period, and faces prices, price of X=2 and Price of Z =3. Her goal is to maximize her utility, described by the function U = 10X0.5Z0.5.
i. What is the consumer’s budget constraint? (3)
ii. State the formula for finding marginal utilities for goods X and Z (2)
iii. Calculate the marginal utilities for goods X and Z (4)
iv. State the utility maximizing condition for this consumer (4).
v. Calculate the utility maximizing bundle (X*, Z*) (13)
Mr. Wong is a retired secondary teacher. Recently, he has become a volunteer tutor in
a community centre teaching a free guitar course.
(a) ‘Since Mr. Wong does not have any income from work, working as a volunteer
tutor does not involve an opportunity cost.’ Do you agree with this statement?
Explain.
(b) Explain whether the free tuition service provided by Mr. Wong is a free good.
Explain why two indifference curves cannot intersect each other.
How the impact of inelastic and elastic demand curve will differ if environmental policies are enforced
The locus of the consumer equilibrium points, when income of the consumer changes and prices of the
good remain constant, is known as
Question - Risk and Risk Avoidance
Prompt: In investments, a higher risk may provide higher returns. It is interesting how people have different comfort levels taking risks. Please consider your own comfort with taking risks; are you a person who is willing to take a risk in order to earn a higher level of return on investment?
Instructions: Answer this prompt with a comprehensive response that includes reasons for the yes or no prompt.
Context Link: https://saylordotorg.github.io/text_personal-finance/s08-evaluating-choices-time-risk-a.html
Extra Directions: Respond to this prompt as if you were a sixteen-year-old in high school as a sophomore.
Planning to Buy a Home
For this discussion discuss the pros and cons of buying a home. Compare the costs and benefits. Include your alternatives.
Create a list:
- Pros/Cons
- Costs/Benefits
- Alternatives
Use this list as an original post and explain how this list might influence your overall decision to buy or not buy a home.
Context Link: https://saylordotorg.github.io/text_personal-finance/s13-buying-a-home.html
