Economics Answers

Consider a market with two dominant firms (curnot duopoly) producing a homogenous product. The inverse market demand function is given by

you assume that Coca-Cola company is the representative firm & has a total cost given by TC= 125+q2+q where q is the quantity of the output that the firm produces. You further assume that the market demand for Coca-Cola products is given by the equation P= 1250.5-2Q, where Q is the entire market quantity. In addition, you are informed that the supply curve for the market is given by P=150+Q.

d) In this market, what is the long run equilibrium price and what is the long run equilibrium quantity for Coca-Cola Company to produce? Explain your answer.
e) Given the long run equilibrium price calculated in part (d) above, how many units of the coca-cola products are produced in this market?

2. Show from national income accounting that
a. An increase in taxes(while transfers remain constant) must imply a change in net exports, government purchases, or the saving-investment balance.
b. An increase in disposable personal income must imply an increase in consumption or increase saving.
c. An increase in both consumption and saving must imply an increase in disposable income.

with the aid of a properly labelled diagram, explain the three main characteristics of the consumption function

you assume that Coca-Cola company is the representative firm & has a total cost given by TC= 125+q2+q where q is the quantity of the output that the firm produces. You further assume that the market demand for Coca-Cola products is given by the equation P= 1250.5-2Q, where Q is the entire market quantity. In addition, you are informed that the supply curve for the market is given by P=150+Q.
a) What is the equilibrium quantity and price in this market given this information?
b) Given the answer in part (a) above, obtain the profit maximizing level of output, the total revenue, total cost and profit at the market equilibrium.
Is this a short run or long run equilibrium? Explain your answer.
c) Given your answer in (b) above, what do u think will happen in this market in the long run?

contrast the price elasticity of demand for bottled water and movie ticket

With the aid of fully labelled diagram explain the general business cycle in the South African economy (5)

Why and how does increase in private saving or decrease in government spending lead to depreciation of exchange rate? Doesn't increase in savings lead to decrease in import and decrease in import leads to decrease in country for foreign currency and that leads to appreciation? Thanks

1. Describe the main instruments of fiscal policy that are available to the government
2. Drawing from the statement above, how can government finance increased expenditure?

Define and explain with an example why firms resort to product differentiation under monopolistic and oligopolistic market structures.