Economics Answers

A. Create a table of Production Schedule for Output X with Variable Labor Input using the Marginal Product Form.

ACME Coal paid $5,000 to lease a railcar from the Reading Railroad. Under the

terms of the lease, $1,000 of this payment is refundable if the railcar is returned within

two days of signing the lease.

a. Upon signing the lease and paying $5,000, how large are ACME’s fixed costs? Its

sunk costs?

b. One day after signing the lease, ACME realizes that it has no use for the railcar. A

farmer has a bumper crop of corn and has offered to sublease the railcar from ACME at

a price of $4,500. Should ACME accept the farmer’s offer

Kaanha likes to consume only two goods – butter and flutes. He earns an income of Rs 2000 per month which he entirely spends on consumption of the two goods. Price of a unit of butter is at Rs 40 and the price of a flute is at Rs 10. Kaanha currently optimally consumes 40 units of butter and 40 units of flutes. Now, price of both the goods have become equal at Rs 25. At optimal choice, how would the level of satisfaction of Kaanha be affected by this price change? Explain with the help of a diagram.    

Explain the Law of Diminishing Marginal Utility. How does it have an implication over the Law of Demand?

 (5 marks) Diya opens a cake shop in her locality. At the time, her cake shop is the only one in the locality and she manages to maximise her profits. After six months, several new cake shops are opened in the locality, each of which specialises in a cake of a different flavour. How does the entry of new cake shops affect Diya’s cake shop if she still aims to maximise profits? Explain your answer using a graph that shows the change.

Write brief notes on the following econometric terminologies:

i. Coefficient of multiple determination (R2). 

ii. Type II error.

iii. Regressors. 

iv. Disturbance term (Ui).

v. Simple linear regression model. 

vi. BLUE properties

How to shop keeper utilize the limited resources to fulfill her needs

Create an essay demonstrating the Integration of Information and Communication technology into teaching practice. You must design the ICT strategy that has never existed before and the strategy must be implemented to advantage the 2021 Grade 12 learners during Covid-19 pandemic.

Now a government subsidy program lowers the price of X from $20 per unit to $10 per unit.

(e) Calculate and graphically show the change in good X consumption resulting from the program.

(f) Graphically show the change in consumption attributable to the separate income and substitution effects.

(g) Show (graphically) how much the program cost the government. 

Robinson's preferences between apples (a) and bananas (b) are expressed by the following:

U = (a+2)^0.5(b+1)^0.5

(a) Show that Robinson's indifference curves are negatively sloped.

(b) Are they convex to the origin? Explain