Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

1) ‘Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.’

a) Draw the production possibility curve and list the underlying assumptions.

b) describe the above statement by referring to your graph for problem (a).

c) describe three fundamental economic problems which reflect the reality of scarce resources.

2) On April 20, 2010, an oil-drilling platform owned by British Petroleum exploded in the Gulf of Mexico, causing oil to leak into the gulf at estimates of 1.5 to 2.5 million gallons per day for well over two months. Due to the oil spill, the government closed over 25 percent of federal waters, which has devastated the commercial fishing industry in the area.

a) Define consumer surplus and producer surplus.

b) Draw a standard supply and demand diagram which relates to the above situation.

c) Using the diagram in (b), describe how the reduction in supply from the reduced fishing waters will either increase or decrease consumer surplus and producer surplus.

3) Suppose the demand and supply curves for eggs in the Malaysia are given by the following equations:

Qd = 100 – 20P, and Qs = 10 + 40P

Where the Qd = millions of dozens of eggs Malaysian would like to buy each year; Qs = millions of dozens Malaysia farms would like to sell each year; and P = price per dozen of eggs.

a) Fill the missing data in the table. Show your workings.

1596_demand supply table.jpg

b) Use the information in the table to find the equilibrium price and quantity.

c) Graph the demand and supply curves and identify the equilibrium price and quantity.

4) Fill in the missing amounts in the following table:

a) Fill the missing data in the table. Show your workings.

2148_Elasticity table.jpg

b) Would you recommend that Ben & Jerry’s move forward with a plan to raise prices if the company’s only goal is to increase revenues? describe.

c) Would you recommend that beer stands cut prices to increase revenues at 49ers football games next year? describe.

d) Briefly describe TWO (2) determinants of elasticity other than price of its own.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M980

Have any Question? 


Related Questions in Business Economics

Some farm land is more productive than other land in the

Some farm land is more productive than other land in the sense that it can grow more food per hectare. Farmers also use fertilizer to grow food (i.e. adding fertilizer increases crop yield by 10 percent) earn more revenu ...

In 15 experiments studying the electrical behavior of

In 15 experiments studying the electrical behavior of single cells, 11 use microelectrodes made of metal and the other 4 use microelectrodes made from glass tubing. If two of the experiments are to be terminated for fina ...

A survey of 455 citizens found 304 of them favor a new bill

A survey of 455 citizens found 304 of them favor a new bill introduced to the city. We want to find a 95% confidence interval for the true proportion of the population who will favor the bill. What is the lower limit of ...

A soda vendor at aloha stadium noticed that during rainbow

A soda vendor at Aloha Stadium noticed that during Rainbow Warrior football games that more soda is being served the warmer the temperature during game time. Based on 40 home games covering the past 5 years, the vendor e ...

The table below shows the results of a survey that asked

The table below shows the results of a survey that asked 2873 people whether they are involved in any type of charity work.  A person is selected random from the sample.  Frequently Occasionally Not at All Total Male 225 ...

Bullwhy hasnt health care in australia been entirely

• Why hasn't health care in Australia been entirely privatised, according to Boxall and Gillespie? • Should health care (in Australia) be wholly privatised? Do you think it will be in the future?

Suppose after collecting data on an existing firms actual

Suppose, after collecting data on an existing firm's actual short-run ouput, the following production function is found to match the data:  TP = Q = 5*L + 0.6*L2 - 0.01*L3  1. Using the equation above, find the following ...

When we look at the ease to enter the different market

When we look at the ease to enter the different market structure, there is no doubt that 'monopoly' is the hardest. Why? -- There is only ONE firm that has established 'economies of scale' with the production of their go ...

Consider a french-owned cheese factory located in paris

Consider a French-owned cheese factory located in Paris, France. Are the goods made by the cheese factory part of the U.S. Gross Domestic Product (GDP)? Are these goods included in the U.S. Gross National Product (GNP)? ...

If average total costs are 1683 at 6 units of output what

If Average Total Costs are 16.83 at 6 units of output, what are Total Costs?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As