Search & Filtering
: Qd = 20,000 - 3P Qs = 15,000 + 2P
Where ‘P’ is the price in rupees of a renewable energy resources, ‘Qd’ is quantity demanded for renewable energy resources, a ‘Qs’ is quantity supplied for renewable energy resources.
a) Calculate the equilibrium price and equilibrium quantity of renewable energy resources.
b) Calculate price elasticity of supply using point elasticity method when renewable energy sector is in equilibrium. Also, interpret the result
c) What will happen to the equilibrium quantity and equilibrium price of renewable energy resources if energy sector improves the technology? (Graph is not required)
a) Calculate the equilibrium price and equilibrium quantity of renewable energy
resources.
b) Calculate price elasticity of supply using point elasticity method when renewable
energy sector is in equilibrium. Also, interpret the result.
c) What will happen to the equilibrium quantity and equilibrium price of renewable
energy resources if energy sector improves the technology? (Graph is not
required)
Qd = 20,000 - 3P
Qs = 15,000 + 2P
Nesto hypermarket sells three brands (A, B, and C) of laptop computers. The monthly sales of the three brands are: Brand A = 15 units; Brand B = 9 units and Brand C = 12 units. The unit price of brand A is R.O. 300; brand B is R.O. 280 and brand C is R.O. 200. The cost to the Stores is 280 R.O. for brand A; 260 R.O. for brand B, and 180 R.O for brand C. Let
Q = ; P =; and C =
Using the above matrices, calculate the following:
(a). Calculate total revenue
(b). Calculate total cost
(c). Calculate the monthly profit.
Respond to the following question in at least three well composed paragraphs: What are the necessary conditions for a monopoly position in the market to be established?
Suppose there is a permanent increase in total factor productivity (i.e., both current productivity and future productivity rise). Determine the equilibrium effects of this on current aggregate output, current employment, current real wage and interest rate, current consumption, and current investment. Show how the impact differs from the case where total factor productivity increases only in the current period. Explain your results.
Indicate under which item of the current account each of the following transactions is recorded and whether it will increase or decrease the balance on the current account. a. Capeson, a Chadilien exporting company, exports fruit to the Middle East. (2 Marks) b. Jones and Kelly, a Chadilien engineering firm, hires German engineers to help with the construction of new stadiums. (2 Marks) c. You receive a dividend (a part of the profit) because you own some shares in Amazon which is based in the US.
Which of the following is always downward-sloping? (4 Marks)
a. The marginal cost curve when it is below the average total cost curve.
b. The marginal cost curve when it is above the average total cost curve.
c. The average total cost curve when it is below the marginal cost curve.
d. The average total cost curve when it is above the marginal cost curve
Indicate under which item of the current account each of the following transactions is
recorded and whether it will increase or decrease the balance on the current account.
a. Capeson, a Chadilien exporting company, exports fruit to the Middle East. (2 Marks)
b. Jones and Kelly, a Chadilien engineering firm, hires German engineers to help with
the construction of new stadiums. (2 Marks)
c. You receive a dividend (a part of the profit) because you own some shares in Amazon
which is based in the US. (2 Marks)
COECB1-B44 – Take-Home Assessment Paper Block 4 2021 | V1.0 Page 5 of 7
d. You inherit some money from your deceased aunt who lived in London
Monopolistically firm sells balls. What will be the profit?
Price Data quantity Data output Total cost
$11 6 6 $48
$10 7 7 $52
$9 8 8 $57
$8 9 9 $63
$7 10 10 $70
Anuradha Sharma, a start up entrepreneur from Bareilly, has invested Rs 80 lacs in an apparel retail store. Business has been good, and the store shows an accounting profit of Rs 10 lacs for the last year. This profit is after taxes and after payment of a Rs 20 lacs salary to Ms. Sharma. This salary is less than what she could make at another job, which is about equal to Rs 40 lacs. Considering the risk involved in the fashion retail business post Covid’19, she believes that a 15 percent after-tax rate of return is appropriate for this type of investment. (20 marks)
a. b. Given this information, calculate the economic profit earned by Ms Sharma. What accounting profit would the firm have to earn in order for the firm to break even in term of economic profit?
