Economics Answers

4.2 Explain using properly labelled diagrams, why a perfectly competitive firm will earn only normal profit in the long-run. (16)
4.3 Explain SEVEN (7) conditions necessary for a perfectly competitive market to exist.

A community in Northern Namibia produces only two goods, TVs and CDs. With the aid of properly labelled production possibilities curves illustrate each of the following (putting TVs on the vertical axis).
2.1.1 A shift in production from CDs (services) towards TVs (goods). (5)
2.1.2 An increase in the potential output of the community due to a greater availability of the factors of production. (5)
2.2 Using well labelled diagrams, explain how the equilibrium price and equilibrium quantity of apples will change as a result of the following;
2.2.1 A change in the wages of farm workers from R150 per day to R200 per day. (10)
2.2.2 A decrease in the price of fertilizers and a concurrent increase in the demand for apple juice.

3.1 Briefly explain price elasticity of demand and how it is measured. (5)
3.2 Explain with diagrams and relevant examples, THREE (3) categories of price elasticity of demand. (9)
3.3 Explain any THREE (3) determinants of price elasticity of demand.

Explain using properly labelled diagrams, why a perfectly competitive firm will earn only normal profit in the long-run.

Lonewolf Ltd is the sole manufacturer and supplier of solar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units of his product as he wants at that price. Is this correct? Motivate your answer.

Lonewolf Ltd is the sole manufacturer and supplier of solar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units of his product as he wants at that price

The Fed buys​ $5,000 of government securities. The required reserve ratio is​ 15%. Banks hold no excess reserves and there is no currency drain i.e. there are no leakages in the banking system.

​(A) As a result money supply will
A.
increase

B.
decrease


by ​$

nothing
. ​(Enter a numerical value here. Approximate your answer to a whole​ number.)

My area is a place where we only farm yam and other cash crops like cassava, rice and sugar cane, how can keynes model use to solve the economic challenges in the area to rise the economic growth

define and explain when the presence of a backstop competitive supplier leaves hotelling industry extraction largely unchanged and when such a bacckstop changes hotelling extraction considerably

In the paper 'Who's who in the network, wanted key player (2006)' the author Calvo Armengol et al. shows how the position in the network changes best response outcome. I want to know What is the intuition behind using largest eigenvalues? I mean why use eigenvalue value at all why is it special and why the largest eigenvalue? Secondly, where have the made use of global substitutability in proving the existence of Nash equilibrium and uniqueness? Also, how does incorporating global substitutability help in explaining best responses?