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With the help of well-labeled diagrams, compare the long run equilibrium of a firm under a
perfectly competitive market structure and a monopoly market structure. [20 ma
Explain the difference between monetary loosening and monetary tightening
Suppose that the market demand for facial mud packs are given as follows: P = 2,200 – Q. Mud packs can be produced at no cost. Determine the level of output that would be produced by each firm in a Cournot duopoly in the long run. Calculate the price charged for mud packs. Show all calculations. [9]
With the aid of diagram(s) determine how equilibrium is achieved when there is non-government
intervention in the market economy
Chapter 5 Review question on PCM
4. A Perfectly competitive firm has a domesticdemand curve is P = 100. The firm’s total cost
function is TC = 2Q2 + 20Q. Costs andprices are in ETHIOPIAN Birr. Based on thisinformation.
A. Drive the revenue function
B. Calculate the equilibrium level of output, and profit?
C. Calculate shout down level of output, and Profit?
D. Calculate the break even level of Output, and Profit?
In one year, 15 dance studios opened in Durban. During that same year, SABC started broadcasting professional dance shows on TV, which sparked more interest in the sport. What would we expect to happen to the price and quantity of attending a dance lesson in Durban during that year?
Which stage of short run production is efficient?why?
In a competitive market, supply and demand decrease simultaneously. The effect on equilibrium quantity is?
A manufacturer can produce radios at a cost of $10 apiece an estimated that if they are sold for x dollars, consumers will buy approximately80-x radios each month. Express the manufacturer’s monthly profit as a function of the price x, graph this function, and determine the price at which the manufacture’s profit will be greatest.
What is Diminishing Marginal utility (DMU)? Explain and illustrate this concept graphically using the curves of total and Marginal utility.
