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Answer: Price Elasticity of Demand Price elasticity of demand (PED) is a measure of how much the demand for a good or service changes when its price changes. It is used to measure the responsiveness of demand to a change

Answer: India to Become the World’s Most Populous Country by 2050 By the year 2050, India is projected to surpass China as the world’s most populous country, according to a United Nations report. India’s population is expected to rise from

Summary In a small rural town, local farmers are all selling the same type of organic tomatoes in a perfectly competitive market. In the long-run equilibrium, these farmers will operate at the minimum of their average variable cost curve, zero

Answer The population of a certain area can decrease for a variety of reasons. These reasons can range from an increase in mortality rates to a decrease in fertility rates, to a decrease in immigration, or even a combination of

Answer: Perfectly Competitive Market Equilibrium In a perfectly competitive market, local farmers operate at the minimum of their average variable curve, zero economic profit, the intersection of the marginal cost and average total cost curves, and supernormal profits in the

Ano ang ibon? (What is a bird?) Ang ibon ay isang uri ng hayop na may mga pakpak at naglilipad. Ang isang ibon ay mayroong isang pares ng mga pakpak at isang maliit na ulo na may kakaibang mga pandinig.

Answer: Which Statement/s Are Correct About Perfectly Competitive Market Long-Run Equilibrium? In a perfectly competitive market, local farmers in a small rural town operating at long-run equilibrium are at the minimum of their average variable cost curve, earning zero economic

Answer The maximum value of total product for this firm is 40. This value is determined by the total number of baskets produced with the given information in Table 1. Supporting Subsections Table 1 Table 1 below shows the number

Answer: Which of the following statements is/are correct The correct answer is option a) Only ii and iii. Total product starts by increasing at an increasing rate and then increases at a decreasing rate as the amount of the variable

Answer: Marginal Cost of Producing Mineral Water The marginal cost of producing mineral water can be determined by looking at the short-run total cost schedule of an energy drink manufacturer. When output increases from 30 to 80 bottles of mineral

Answer The answer to the question is option C: R210. The firm’s economic profit can be calculated by subtracting the total revenue from the total cost associated with the production. Total revenue is calculated by multiplying the quantity demanded by

Answer The correct answer is “d) R240”. To determine the economic profit, we need to calculate the total revenue (TR) and total cost (TC) for Jack’s Enterprise. Total revenue is calculated by multiplying the price and quantity. The total cost

Answer: Calculating Economic Profit for Jack’s Enterprise Economic profit is the amount of money a business earns above and beyond its total costs. To calculate the economic profit of Jack’s Enterprise, we must first calculate the total revenue (TR), marginal

Answer The economic profit of Jack’s Enterprise is R180. This is calculated by subtracting the total cost of production from the total revenue. Calculation The total revenue (TR) is calculated by multiplying the price by the quantity. TR at 30:

Answer: Price Elasticity for Business Travellers vs. Holiday Travellers Price elasticity is the measure of how sensitive a product’s demand is to its price. When the price of a product increases, consumers will generally be more willing to purchase the

Answer: Should this Firm Produce Widgets in a Perfectly Competitive Market? In a perfectly competitive market, the market price for widgets is R15. The cost information for a firm producing widgets in this market is given in the table below.

Answer: Should this Firm in a Perfectly Competitive Market for Widgets Produce or Shut Down? This question is referring to a perfectly competitive market for widgets and the market price being R15. The cost information for a firm producing widgets

Answer: The firm’s profit-maximising daily output in the short run is 80 units. This is because the profit-maximising quantity is determined by the intersection of the marginal revenue and marginal cost curves, both of which occur at 80 units. Supporting

Answer: The firm’s profit-maximising daily output in the short run is 100 units. This is because the marginal cost curve intersects the price curve at 100 units, indicating that producing any more than this quantity would cause the firm to

Answer: Effect of Decrease in Price of Potatoes on Sweet Potato Market Agri SA and Agbiz have raised concerns about rising input costs in the agricultural sector, particularly due to fuel costs, which are having an impact on agribusiness profitability.

Answer: Price Elasticity of Demand (PED) for Sarah’s Hand-Painted Vases Price elasticity of demand (PED) measures how much the quantity demanded of a good or service changes in response to a change in its price. In the case of Sarah’s

Answer: The price elasticity of demand (PED) for Sarah’s hand-painted vases is 1.2. This can be calculated using the formula PED = (% Change in Quantity Demanded/ % Change in Price). In this scenario, the % Change in Quantity Demanded

Answer The answer to this question is option C, greater than R1 200. This is because the total costs to the profit-maximising firm in the short run will be equal to the marginal cost curve at the output level where

Answer: c) $7.50 The opportunity cost of producing eight facial tissues in money terms when moving from combination B to C is $7.50. Opportunity cost is the cost of an alternative that must be forgone in order to pursue a

Answer Summary The correct answer to the question of “The total cost of the monopolist is equal to” is option C, R18 000. Supporting Subsections Monopoly Cost Overview A monopoly cost is the cost of a company that has a

Answer: Short-Run Monopoly Equilibrium of Sarah’s Bakery Sarah owns the only bakery in a small town and specializes in a unique type of pastry that has gained immense popularity. As a result, she has a virtual monopoly on this pastry

Answer: The Impact of a Strike on Wine Farms on Equilibrium Price and Quantity The diagram depicts an increase in the demand for wine, following research reports highlighting the benefits of its consumption to one’s health. If at the same

Answer: Definition of Equilibrium in Perfectly Competitive Markets In a perfectly competitive market, there are a large number of buyers and sellers, and each participant has relatively small market power. This means that the market price is determined by the

Answer: In a Perfectly Competitive Market, Local Farmers are Operating at Zero Economic Profit In a small rural town, where numerous local farmers gather to sell their fresh produce, the farmers are operating in a perfectly competitive market. Perfect competition

Answer: Maximum Product of Bentle Weavers The maximum value of total product for the Bentle Weavers in the short run is 40. This can be calculated using the data provided in Table 1, which shows the number of baskets produced

Answer The maximum value of total product for this firm is 48. This can be determined by observing the table provided and tallying up the total number of baskets produced by the three machines and labour. Supporting Subsection 1: Machine

Answer The correct answer is option ‘a’: only statements ii and iii are correct. Explanation Statement i is incorrect because at the maximum point of the total product curve, average product is equal to the marginal product, not zero. Statement

Answer The panel of Figure 10.1 which would represent a situation where Intel CEO Pat Gelsinger’s lobbying is successful given the current increasing usage of chips is panel C. Panel C illustrates a situation where there is an increase in

Answer The demand for café lattes is price elastic, as calculated above. This means that when the price increased from R15 to R20, the quantity demanded decreased from 2000 to 1200 café lattes per day. Definition of Price Elasticity of

Answer: Cooking Oil Prices Cooking oil prices have recently spiked by 60%, and are expected to remain high for the foreseeable future. The cause of this crisis is largely due to a global shortage in oil-producing crops, leading to South

Answer: What Causes a Movement from Point p1q2 to Point p1q1? In figure 12.1, a movement from point p1q2 to point p1q1 can be explained by an increase in buyers’ income. An inferior good is one for which the demand

Answer Figure 11.1 represents a production function that demonstrates the law of diminishing returns. The law of diminishing returns states that beyond a certain point, the addition of more inputs will not result in a proportional increase of output. In

Answer: Total Costs to the Profit-Maximising Firm in the Short Run The total costs to the profit-maximising firm in the short run can be determined by looking at the figure below. It is clear that the total cost of the

Answer: Profit Maximising Output The firm’s profit-maximising daily output in the short run is 80 units. This is because in the short run, price is equal to marginal cost. This is represented by the intersection of price and marginal cost

Answer: The firm should maximize profits by producing 8 widgets. In a perfectly competitive market, the market price (R15) is equal to the firm’s marginal revenue. The marginal cost for producing 8 widgets is R12 while the total revenue is