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Most weeks, the demand for long-stem roses can be approximated by QD = 2400 -
50p, where QD is the total quantity demanded (in dozens) at price p (per dozen).
Currently, roses are supplied by 100 identical growers, each having total costs
C=0.25q2
+0.5q+36, where q is the number of roses (again, in dozens) supplied by
the grower. The $36 cost can be avoided on a daily basis.
(a) What is the short-run supply curve for each individual grower? Describe this
curve both algebraically and graphically.
(b) Derive the short-run market supply schedule, which gives quantity supplied as a
function of price.
(c) What is the equilibrium price for a dozen roses in this market? Sketch the market
supply and market demand schedules.
(d) How many dozens of roses will be supplied by each grower?
(e) Assuming there is free entry into and exit from this market. Will there be entry or exits from this market going into the long-run? Explain your answer.
50p, where QD is the total quantity demanded (in dozens) at price p (per dozen).
Currently, roses are supplied by 100 identical growers, each having total costs
C=0.25q2
+0.5q+36, where q is the number of roses (again, in dozens) supplied by
the grower. The $36 cost can be avoided on a daily basis.
(a) What is the short-run supply curve for each individual grower? Describe this
curve both algebraically and graphically.
(b) Derive the short-run market supply schedule, which gives quantity supplied as a
function of price.
(c) What is the equilibrium price for a dozen roses in this market? Sketch the market
supply and market demand schedules.
(d) How many dozens of roses will be supplied by each grower?
(e) Assuming there is free entry into and exit from this market. Will there be entry or exits from this market going into the long-run? Explain your answer.
Could you kindly assist with the graph and exlpanation of the below question:
In the labour market for carpenters, the current market clearing wage rate is R800 per day. With the aid of a diagram, discuss the welfare effects of government intervention in the form of legislation that sets the minimum wage rate for a carpenter at R1000 per day.
In the labour market for carpenters, the current market clearing wage rate is R800 per day. With the aid of a diagram, discuss the welfare effects of government intervention in the form of legislation that sets the minimum wage rate for a carpenter at R1000 per day.
Tom is a full-time lecturer at a private higher education institution and is considering a career in carpentry. He wishes to pursue a career in carpentry (a childhood dream) which he has studied part-time and is now equipped to take on clients. In his current position he earns a rate of R1000 per day and if he were to pursue a career in carpentry, he would earn R800 per day. Due to the flexibility of the employment conditions at the higher education institution he works for, Tom can negotiate the number of days he works at and will receive a rate of remuneration based on the number of days worked.
Question 1
1.1 Construct a production possibility frontier to illustrate Tom’s earnings potential between the two careers if initially he was not working as a carpenter, then he worked one week per month, then two, then three and finally four weeks per month (assuming only four weeks in a month). (5 marks)
Question 1
1.1 Construct a production possibility frontier to illustrate Tom’s earnings potential between the two careers if initially he was not working as a carpenter, then he worked one week per month, then two, then three and finally four weeks per month (assuming only four weeks in a month). (5 marks)
In the labour market for carpenters, the current market clearing wage rate is R800 per day. Wth the aid of a diagram, discuss the welfare effects of gover
in the labour market for carpenters,the current market clearing wage rate is R800 per day. with the aid of a diagram, discuss the welfare effects of government intervention in the form if legislation that sets the minimum wage rate for a carpenter at R1000 per day.
What is federal open market committee?
tom is a full time leacture at private higher education institution and is considering a career in carpentry. he wishes to pursue a career in carpentry ( a childhood dream) which he has studied part- time and is now equipped to take on clients. in this current position he earns a rate of R 1000 per day and if he were to pursue a career in carpentry he would earn R 800 per day . due to the flexibility of the employement conditions at the higher education institution he works for, Tom can negotiate the number of days he works at and will receive a rate of remuneration based on the number of days worked.
construct a prodctuin possibility frontie to illustrate TOM's earning potential between the two career if initially he was not working as a carpenter, then he worked one week per month, then two, then three and finally four weeks per month
construct a prodctuin possibility frontie to illustrate TOM's earning potential between the two career if initially he was not working as a carpenter, then he worked one week per month, then two, then three and finally four weeks per month
discuss a factor that would lead to an outward shift of the diagram
Economics
Consider a firm for which production depends on two normal inputs, labour and capital, with prices w and r, respectively. Initially the firm faces market prices of w = 6 and r = 4. The price of capital (r) then shifts to r = 6 while w remains the same. Use isocost-isoquant analysis to show and explain the following.
A. In which direction will the substitution effect change the firm’s employment and capital stock?
B. In which direction will the scale effect change the firm’s employment and capital stock?
C. Can we say conclusively whether the firm will use more or less labour and more or less capital?
A. In which direction will the substitution effect change the firm’s employment and capital stock?
B. In which direction will the scale effect change the firm’s employment and capital stock?
C. Can we say conclusively whether the firm will use more or less labour and more or less capital?
What could be the cause of a straight line graph in a production possibility frontier?
