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Evaluate and explain these two statements. 1. An increase in fixed cost increases the minimum-cost output. 2. An increase in fixed cost increases marginal cost.
Explain what “equity” means as it relates to taxation.
what are the major difference between Irving fisher's quantity theory of money freedman restement of liquidity theory of money.
There are two firms who will compete on quantity. The market demand is D(P)=190-3P. Both firms initially have a marginal cost of 10. However, if the first firm makes an investment of 100, it can lower its marginal cost to 5. Will it?
Mr Makhani has just retired and received R1000 000 net lump sum income from his employer. He decided to spend it all on a tree farm, he planted pine trees for plumbing materials. Environmental Economists argue that planting trees produces market failure as the market fails to consider positive production spillover effects generated by CO2 capturing effect of tree plantations. With the aid of suitable diagrams, illustrate and discuss the positive external effect of Mr. Makhani’s business and indicate the necessary intervention by Government aimed at internalizing the effect of such spillovers.
Given below is the Supply Schedule of Nestle Milk per liter: Price of Milk per liter (in Rs) 100 200 300 400 Quantity Supplied per day in liters (in 1000s) 100 200 300 400 A. Use the above data to illustrate the Supply Curve in a graph with complete labels. (0.5 Marks) B. Assume Rs. 200 is the original price of milk per liter and 200,000 liters is the original quantity of supply. (0.5 Marks) C. Suppose the price rises from Rs. 200 to Rs. 300, what will be the amount of Quantity Supplied? (0.5 Marks) D. Illustrate the impact of (C) on the graph. (0.5 Marks) E. Is this a movement along the supply curve or shift of the curve? (0.5 Marks
The Telecommunications Regulatory Authority (TRA) is the UAE’s independent industry regulator. Since its launch in 1976, Etisalat has held a monopoly in the market. That changed in 2006 with the emergence of du, which was awarded a 20-year concession to operate fixed-line, wireless, internet and international telecoms services. UAE-based telecom operator recently announced that it was launching Virgin Mobile as a new telecom brand within the country. Assuming the trend continues and the government opens the market for more private and foreign players. You are required to – a. Apply your understanding and concepts from microeconomics, to investigate and summarize the major characteristics of the emerging market form in the telecom industry. b. Describe and analyze the pricing policies that you would expect to find in this industry. c. Explain the profit maximization strategy of this market form with the help of a suitable graph.
Suppose the short run market price a competitive firm faces is birr 9 and the total costof the firm is TC=200+Q+0.02Q2. a) calculate the short run equilibrium output and profit of the firm B)drive the MC, ATC,and AVC and calculate the values at the short run equilibrium output C) calculate the producers surplus at the equilibrium output D) find the output level that will make the profit of the firm zero