Economics Answers

a) If a competitive firm is making a short-run loss, would it be better to produce nothing at all or to continue operating at a loss? Elucidate.


You recently noted that a national beverage company generously assisted in renovations of the basketball arena and library at a large state university, and university officials agreed to an exclusive beverage contract with the company. Was this most likely a benevolent charitable act by the beverage company?

Provide an intuitive explanation for why “buy one, get one free” deal
is not the same as a “half-price” sale. Use demand curve Q=12-2P,
and original price P∗ = 5 to calculate consumer surplus under each
deal.

b) Suppose you decide to produce a beverage and you discover it has a demand function given by

How will the successful application of robotic technology in Australian higher education impact: a. Supply of education (2.5 marks) b. Demand for education (2.5 marks) c. Marginal cost of education (2.5 marks) d. Fixed costs of education (2.5 marks) Explain using diagrams.

1) What is the shape of marginal cost curve for Netflix in Australia?
2) The latest electric car is expected to be released in Australia shortly. What impact might this have on the market for battery powered bicycles?

Initially, suppose Bellissima uses 1 million hours of labor per month to produce corn and 3 million hours per month to produce jeans, while Dolorium uses 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Dolorium produces 15 million bushels of corn and 20 million pairs of jeans, and Bellissima produces 8 million bushels of corn and 48 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of corn and jeans it produces.

Discuss the circular flow diagram with four markets players (household, Firms, the Government and the rest of the world)

1) What is the shape of marginal cost curve for Netflix in Australia?
2) The latest electric car is expected to be released in Australia shortly. What impact might this have on the market for battery powered bicycles?

1.In S.A, the largest single component of aggregate expenditure is?
If Namibia's GDP is greater than its GNI, then the income earned by foreign owners of companies 2.and foreign worker in Namibia is________the income earned by Namibians who have invested, or who are working , abroad

a) Assuming you are a manager of a beverage manufacturing company and you are operating in a non-competitive market were your firms total cost of production is zero. Indicate what you as the manager must do (cut or raise production) to raise revenue when ;
I. Price elasticity of demand is elastic
II. Price elasticity of demand is inelastic
III. Price elasticity of demand is unit elastic
b) Suppose you decide to produce a drink and you discover it has a demand function given by