Economics Answers

The Organisation of Petroleum Exporting Countries (OPEC) is an example of which

form of market structure? Discuss its characteristic features.

Suppose that equilibrium price in this market were to remain at P2 while equilibrium quantity increases to Q4. Which of the following could account for such a change?

Which oligopoly model(s) has the same results as a competitive model?

A firm's demand curve is P = 1 - 2Q. The firm has a current price of R1000 and it sells 100 units per day. What is the firm's price elasticity of demand?

Mr. A and Mr. B have the following respective demands

P^a= 25- 5X

P^b= 11- X

a. Graph them on separate graphs

b. Mr A has no X's while Mr. B has 10 X's. What are the marginal and total values at this quantity? Using either method discussed in the chapter, determine how much each will have after trade? What will be their marginal values at this quantity?

What are the most well-known causes of imbalances in the balance of

payments (BoP) of a country?

What are the major features of construction industry?

Multiple Choice

• High demand risk; a price-sensitive market; required high investment; high supply risk.
• Low demand risk; not a price-sensitive market; required low investment; high supply risk.
• High demand risk; a price-sensitive market; required low investment; low supply risk.
• Low demand risk; not a price-sensitive market; required high investment; low supply risk.

Why do some firms use lots of capital and not much labour, while others use not much capital and lots of labour?

The maize grown in Mphumalanga is used primarily to feed livestock. Suppose that the current "foot and mouth disease" scare were to lead to a significant drop in the size of cattle herds nationwide. What impact would you expect in the market for maize?

Is this a good or bad time to buy a car?