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How will an increase in the unemployment rate affect bargaining power and nominal wages in the country-South Africa?
Find out the total product (TP), average product (AP), marginal product (MP) and draw a graph of TP, AP, MP and also explain the stage of production. if the fixed price of land is 1000 and firm pay 750 to each worker then calculate, Fixed cost, variable Cost, Marginal Cost, Average variable Cost (AVC), Average Fixed Cost(AFC), and Average total cost(ATC).
Imagine that the banking system received additional deposits of $100 million and that all the individual banks wish to retain their current liquidity ratio of 20%. If one-half of any additional liquidity is held outside the banking sector, by how much less will deposits have risen compared with (d) above?
Imagine that the banking system received additional deposits of $100 million and that all the individual banks wish to retain their current liquidity ratio of 20%.What is the size of the bank multiplier?
Imagine that the banking system received additional deposits of $100 million and that all the individual banks wish to retain their current liquidity ratio of 20%. How much of these extra total deposits are matched by (i) liquid assets; (ii) illiquid assets?
A cement factory is located near a river which is also used for training sessions by a team of swimmers. When the factory dumps chemicals in the water, the river cannot be used for swimming. Experts estimate that it would cost $100,000 to install a purifying equipment that would completely eliminate the chemicals from the river. Moving the swimming team to train at a different location would cost $90,000 and thus the purifying equipment would not be necessary.
2.1. Identify the 2 externalities. (1 point)
2.2. What result (theorem) can be applied to fix these externalities? Why might this theorem work in this case? (1 point)
2.3. What solution would the two parties choose if the right to a clean river is granted to the swimming team and who would bear the costs of fixing the externality problem? Briefly explain. (1 point)
Imagine that the banking system received additional deposits of $100 million and that all the individual banks wish to retain their current liquidity ratio of 20%.By how much will total deposits eventually have risen, assuming that none of the additional liquidity is held outside the banking sector?
Describe possible unintended consequence to your policy actions.
How Keynes theory of employment is a special case of classical one??
(1)(a) What is 3 rd degree price discrimination? Briefly identify the conditions necessary for a successful
implementation of this profit maximizing strategy.
(b) A seller produces output and sells in two distinct markets with the following demand curves:
Q1 = 16 – P1 , Q2 = 20 – 2P2. If the total cost for the firm is 10 + 2Q, determine the quantities of
output the firm would produce and sell in each market. What prices would the firm charge in each of
the two markets?
(c) Find the price elasticity of demand in each submarket and briefly comment on how the results relate
to the relative prices charged in each market.
