Question 1 nbspa group of rogue french farmers has gone on

Assignment Help Business Economics
Reference no: EM13346366

Question 1:

 A group of rogue French farmers has gone on a furious egg breaking rampage, destroying tens of thousands on roads and pledging to smash many more in protest against low egg prices.

"More than 100,000 eggs were destroyed in the Cotes d'Armor (a division of Northwest Brittany) a spokesman for the unnamed collective of angry poultry farmers told AFP.

Poultry farmers in France have for months complained of rock-bottom egg prices due to overproduction - a problem that also affects other countries in the European Union.They say that current prices do not compensate for a rise in production costs or investments that they made as part of an EU directive of January 2012 to protect the well-being of laying hens.Their spokesman said that masked farmers had broken the 100,000 eggs overnight from Tuesday to Wednesday near Lidl supermarket and on a roundabout as reported in local media. 

"We will continue to destroy 100,000 eggs a day until Sunday and become more radical with inevitable collateral damage if the group's demands are not met" said their spokesman".  He also said that destroying 100,000 eggs a day equated to "five per cent of the production" of poultry farmer members of the collective.

The group called for France's entire production to be reduced by five per cent to help raise prices, and asked the government to set up a specific area for eggs to be destroyed.  According to Yves-Marie Beaudet of the egg section of the union that represents poultry farmers in Brittany, producers currently get paid 75 cents ($1.12 AUD) for a kilogram of eggs whereas the cost price is 95 cents.  The UGPVB union says that the EU has "15 to 20 million" excess laying hens out of a total of approximately 350 million.

(a) Explain and illustrate with a suitable diagram the cause(s) of low egg prices in France. 

(b) Explain and illustrate with a suitable diagram how the egg breaking rampage affects egg prices?

(c) Explain and illustrate with a suitable diagram the impact on egg prices if demand fell by 5% 

d) Would you consider the demand for eggs to be elastic or inelastic?  Explain your reason. 

(e) Illustrate and explain with a diagram how can the Government intervene and correct this situation? 

Question:

(a) Explain the concept of a concentration ratio.  Is the concentration ratio in a monopolistically competitive industry likely to be higher than for a perfectly competitive industry? 

b) Suppose the minimum point on the Long-run Average Cost (LRAC) curve of a soft drink firm's lemonade is $1 per litre.  Under conditions of monopolistic competition, will the price of a litre bottle of lemonade in the long-run be above $1, equal to $1, less than $1 or impossible to determine.  Illustrate your answer using a diagram (2 marks for diagram plus 2 marks for explanation)

Question:

What will happen to the equilibrium price and quantity of butter in each of the following cases?  Illustrate with a diagram and explain whether demand or supply (or both) have shifted and in which direction.  (In each case, assume ceteris paribus).

(a) A rise in the price of magarine; 

(b) A rise in the demand for yoghurt;

(c) A rise in the price of bread;

(d) A rise in the demand for bread;

(e) An expected rise in the price of butter in the near future;

(f) A tax on butter production;

(g) The invention of new, but expensive, process for removing all cholesterol from butter, plus the passing of a law which states that all butter producers must use this process.

 Question:

                      The diagram below illustrates a firm under monopolistic competition

(a) Label the following curves: Curve I, Curve II, Curve III, Curve IV

(b) Does the diagram represent the short-run or long-run position?

(c) Is P3 the long-run equilibrium price? Explain your answer.

(d) What are the profit maximising output and price?

(e) On the diagram, shade in the amount of profit made at the maximum-profit output.

(f) Draw new average and marginal revenue curves on the diagram to illustrate the long-run equilibrium that will occur after the entry of new firms into the industry

(g) Explain the relationship between the AC, MC, AR and MR curves at this long-run equilibrium position?

2092_BUSINESS ECONOMICS.png

Question:

(a) Explain the impact of external costs and external benefits on resource allocation;

(b) Why are public goods not produced in sufficient quantities by private markets?

(c) Which of the following are examples of public goods (or services)?  Delete the incorrect option

(i) The Judicial system       .......................................................................................................................... Yes/No

(ii) Pencils       .............................................................................................................................................. Yes/No

(iii) The quarantine service    ......................................................................................................................... Yes/No

(iv) The Great Wall of China       .................................................................................................................. Yes/No

(v) Contact lenses       .................................................................................................................................. Yes/No

Question:

(a) Suppose the income elasticity of demand for pre-recorded music compact disks is +4 and the income elasticity of demand for a cabinet maker's work is +0.4.  Compare the impact on pre-recorded music compact disks and the cabinet maker's work of a recession that reduces consumer incomes by 10 per cent. (b) How might you determine whether the pre-recorded music compact discs and MP3 music players are in competition with each other?

(c) Interpret the following Income Elasticities of Demand (YED) values for the following and stateif the good is normal or inferior;

YED= +0.5 and YED= -2.5                                  

(d) Interpret the following Cross-Price Elasticities of Demand (XED) and explain the relationship between these goods.

XED= + 0.64 and XED= -2.6

           Question:

           You are given the following data about two firms:

                     FIRM A

Quantity

0

 

1

 

2

 

3

 

4

 

5

 

6

Total revenue ($)

0

 

10

 

20

 

30

 

40

 

50

 

60

Average revenue ($)

___

 

___

 

___

 

___

 

___

 

___

 

___

Marginal revenue ($)

 

___

 

___

 

___

 

___

 

___

 

___

 

Total cost ($)

30

 

42

 

50

 

60

 

76

 

100

 

140

Marginal cost ($)

 

___

 

___

 

___

 

___

 

___

 

___

 

Average cost ($)

¥

 

___

 

___

 

___

 

___

 

___

 

___

           FIRM B

Quantity

0

 

1

 

2

 

3

 

4

 

5

 

6

Total cost ($)

100

 

134

 

154

 

177

 

216

 

266

 

366

Average cost ($)

¥

 

___

 

___

 

___

 

___

 

___

 

___

Marginal cost ($)

 

___

 

___

 

___

 

___

 

___

 

___

 

Price ($)

140

 

130

 

120

 

110

 

100

 

90

 

80

Marginal revenue ($)

 

___

 

___

 

___

 

___

 

___

 

___

 

Total revenue ($)

___

 

___

 

___

 

___

 

___

 

___

 

___

 

(a) Complete the two tables above.

(b) Are these firms operating in the short or the long run? ......................................... Firm A: short run / long run

                                                                                                                                                 Firm B: short run / long run

 (c) Are these firms operating under perfect or imperfect competition?                                             Firm A: perfect / imperfect

                                                                                                                                                  Firm B: perfect / imperfect

(c) What level of output will these firms produce in the short run?                                 Firm A:..........................................

                                                                                                                                  Firm B:...........................................

 

(d) How would you describe their profit positions?

           Firm A:.....................................................................................................................................................................................

           Firm B:.....................................................................................................................................................................................

Question:

(a) Discuss the following statement:  'In the real world there is no industry which conforms precisely to the economist's model of perfect competition.  This means that the model is of little practical value'. (2.5 marks)

(b) Illustrate with a diagram and explain the short-run perfectively competitive equilibrium for both (i) the individual firm and (ii) the industry;

(c) Illustrate with a diagram and explain the long-run perfectly competitive equilibrium for the firm.

 

Reference no: EM13346366

Questions Cloud

Using an appropriatenbspcnbspsyntax write the code required : using an appropriatenbspcnbspsyntax write the code required to analyse and display the data as per the problem
1what will be the effects of an increase in the money : 1.what will be the effects of an increase in the money supply on the interest rate? what will be the effects of an
1 discuss the different agencies institutes centers and : 1 discuss the different agencies institutes centers and other national bodies that are involved in environmental work
Question the two dof system below has two moving masses m1 : question the two dof system below has two moving masses m1 m2 with an input force of ft applied to m . the
Question 1 nbspa group of rogue french farmers has gone on : question 1 nbspa group of rogue french farmers has gone on a furious egg breaking rampage destroying tens of thousands
A marketing plan is an essential tool for any marketer : a marketing plan is an essential tool for any marketer providing direction for a brand product or organization. a
In todays corporate and globalized business environment hrm : in todays corporate and globalized business environment hrm human resource management is one of the essential tools for
Create a simple warm-up program using your g3d programming : create a simple warm-up program using your g3d programming and graphics environment. this will require you to minorly
Managers at wager fabricating company are reviewing the : managers at wager fabricating company are reviewing the economic feasibility of manufacturing a part that it currently

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

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.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd