Economics Answers

12- Your roommate’s long hours in Chem lab finally paid off—she discovered a secret formula that lets people do an hour’s worth of studying in 5 minutes. So far, she’s sold 200 doses, and faces the following average-total cost schedule:

Q Average Total Cost
199 $199
200 200
201 201





If a new customer offers to pay your roommate $300 for one dose, should she make one more? Explain.

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.

With regard to coal shortages and municipal debts, what forms of interventions Eskom can put in place in order to cover up all the debts and continue operating? Incorporate relevant graphs.

Illustrate and explain using diagrams how a single seller within a market can maintain an inefficient allocation of resources.

Illustrate and explain using diagram how a single seller within the market can maintain an inefficient allocation of resources

Discuss factors that would lead to an outward shift of the diagram

On 13 April 2017, applications had been received for 750 000 shares and it was decided to allot the shares to applicants for 625 000 shares, on the basis of four shares for every five shares for which applications had been received. The balance of the money received on application was to be applied to the amounts due on allotment. The shares were allotted on 1 May 2017, the unsuccessful applicants being repaid their cash on this date. The balance of the allotment money was received in full by 15 May 2017.
With the exception of one member who failed to pay the call on the 5 000 shares allotted to him, the remainder of the call was paid in full within two weeks of the call being made. The directors resolved to forfeit these shares on 1 September 2017, after giving the required notice. The forfeited shares were reissued on 30 September 2017 to another member at R0.90 per share.
REQUIRED:
Write up the ledger accounts necessary to record these transactions in the books of M Limited.

1. The entire managerial economics revolve around what to produce, how to produce, and for whom to produce. Mention the company where you are working (if you are not currently working consider your potential employer) and give appropriate examples and explanations to support the aforementioned statement.

The decrease in the money supply will lead to:
1. a decrease in the nominal interest rate.
2. a decrease in the real interest rate.
3.an increase in the real interest rate.
4.an increase in the nominal interest rate
5. none of the above.

in the classical model of the labor market, involuntary unemployment will increase if?