Economics Answers

Which of the following statements is true of a command economy?


People have most of the control over available goods and services.


Production is based on consumer preferences.


Products readily available in a market economy may be rare or nonexistent.


People are allowed t work in any job or career they choose.

Examine the possible measures which the government might use to reduce the cost of rail travel in the UK including the rail union’s suggestion of re-nationalisation

Consider a production function given as Q(X_(1 ,) X_2)=x_1^0.4 x_2^0.6
Calculate the marginal rate of technical substitution of x_(1 )for x_2

Suppose there are two firms (f1and f2) producing identical product competing for market share and each of which like to dominate the other, if possible. They each faced a choice between Defending and cooperating. When either defends or both cooperate, neither is able to dominate the other. Assume these preferences are reflected in their profit pay offs. If both the player’s choice to defend, their profit will be150 each. when one firm defends and the other cooperates their profit level will be 500 and 0 respectively. similarly, when both cooperate they end up with profit level of 300 each. with this in mind:
a. Represent the above game in payoff matrix form.
b. Identify the dominant strategy for both firms and the dominant strategy equilibrium?

Assume that the market demand and the costs of the duopolists are p=100-X_(1 ,), where x = x_1 + x_2, and c_(1 )=5x_(1,)and c_(2= )0.5x_2^2 . then
Drive reaction curve for both firms, and draw reaction curves
Calculate cournot equilibrium

What does the evidence from the article suggest about the market structure operating in the rail industry? Justify your answer. (20 marks) I was wondering if it is monopoly?

https://www.theguardian.com/business/2017/aug/15/uk-commuters-brace-rail-fares-hike-uk-inflation

https://www.theguardian.com/money/datablog/2017/jan/06/tracking-the-cost-uk-and-european-commuter-rail-fares-compared-in-data

Hard Times Burt buys only rotgut whiskey and jelly donuts to sustain him. For Burt, rotgut whiskey is
an inferior good that exhibits Giffen’s paradox, although rotgut whiskey and jelly donuts are Hicksian
substitutes in the customary sense. Develop an intuitive explanation to suggest why a rise in the price of
rotgut must cause fewer jelly donuts to be bought. That is, the goods must also be gross complements.

To what extent is the concept of elasticity of demand for rail travel a helpful tool in analysing how rail companies go about setting ticket prices on various routes?

Explain how both demand and supply side factors are likely to affect the price of rail tickets in the UK. 16 mark answer, Do I talk about the equilibrium price?
An increase in population, average income, price of substitutes, people commuting to work, the demand curve for railway tickets will shift to the right, an increase in demand.Equilibrium rail ticket prices increase.A decrease in population, average income, price of substitutes, less people commuting to work, demand curve for railway tickets will shift to left, a decrease in demand. Equilibrium rail tickets prices decrease. An increase in tax, fuel prices, staff salaries, electricity costs and a lack of subsidies, the supply curve to shift to the left, the supply for railway tickets decrease due to an increase in production costs, equilibrium price increase.

can wholefoods sustain its dominant position in luxuury grocery market after merging with Amazon? (monopolistic conpetetion)
can whole foods-amazon sustain price discrimination powers associated with differences between online shopping channel (low price, low cost model ) and physical retailing channel (high price, high cost model) ?