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Suppose the following production function data. Complete [4 marks] and answer the questions below. Labour Total Product 1 10 2 22 3 36 4 48 5 55 6 60 7 60 8 56 a) Where does the law of diminishing returns set in? Explain your answer using graph. [6] b) Where is TP = 0 and what happens to MP curve at that point? [4] c) Explain, using a graph, each stage/phase of the production function in terms of returns to labour.
Give the table below Labor total product Average Product Marginal (TP) (AP) Product(MP) 0 0 1 10 2 25 3 45 4 60 5 70 6 70 7 60 8 44 Required 1. Complete the table above by computing AP and MP. 2. Plot in one graph TP, AP and MP. Label graph completely . 3. Indicate the stage of production with its corresponding boundaries.
The free rider problem refers to the temptation of individuals to let others provide the public goods , with relevant example show that purely individualistic mechanisms will not generate the optimal amount of a public good because of the free rider problem
The Cobb-Douglas production function is widely used in managerial economic and empirical analysis because it possesses several useful mathematical properties” As a manager of an organization, how you could apply Cobb-Douglas production function for decision making?
Which one of the following is not a barrier to entry into a monopoly market? A.Significant economies of scale B. Large capital requirements C. Heavy potential advertising cost D. Constant returns to sale
Tinsel Tin Company, an Australian company, mines tin using cheap, resource-wasteful techniques in a tropical country. The effects of the mining include pollution of freshwater streams from almost their sources to the sea. The local people used to fish, hunt near, get drinking water from and swim in these streams, but now none of these things are possible. Local people now buy canned meat for protein. It is relatively cheap and tends to be very poor quality with a very high fat content. As a result, the local people are much fatter than they used to be and their health is poorer. Tinsel has supplied a fully equipped medical clinic but expects the local people to supply the staff. Discuss each of the following questions. (a) Has Tinsel contravened, in your view, its ethical responsibilities? (b) Is it possible to trade off an ethical ‘bad’ with an ethical ‘good’? (c) Has Tinsel done enough to compensate for the change they have brought about in the local people’s lives?
Given the Utility Function is U = X 0.7Y 0.3 and Budget is taka 300. The original price was (Px, Py) = (2, 2) and the new price is (Px’, Py) = (4, 2). (a) Draw an angle curve for X by using the above information [Labelling is must] (b) Calculate the value of Compensation variation (CV) and Equivalent variation (EV)? [10] [ ordinary demand curve]
What problems could arise with consumers net demand functions any any price becomes zero? What axiom of consumer theory is involved here? How might it be changed to exclude this possibility?