Calculate revenue, Microeconomics

Assignment Help:

Question 1  (9 marks)

During the 1990s, technological advance reduced the cost of computer chips.  Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of prices and quantities.

(a)   Computers                 (3 marks)

(b)   Computer software  (3 marks)

(c)    Typewriters                (3 marks)

 

Question 2  (6 marks)

After an economics lecture one day, your friend suggests that taxing food would be a good way to raise revenue because the demand for food is quite inelastic. 

(a)   In what sense is taxing food is a ‘good’ way to raise revenue?  (3 Marks)

(b)   In what sense is it not a ‘good’ way to raise revenue?                (3 Marks)

Question 3  (5 marks)

Most studies of firms’ long run costs have found that average costs decline as firms produce increasingly larger output levels (economies of scale), such as for automobile firms.  However, trucking (haulage) firms appear not to experience falling average costs associated with large-scale operations. Why might this be the case? 


Related Discussions:- Calculate revenue

Determinants of private demand - gender , Determinants of Private Demand - ...

Determinants of Private Demand - Gender Hypothetically, let us consider a family with two children, a boy and a girl. Let it be that both of them qualify in an entrance exami

The great depression, How did fixed exchange rates and the Golden Standard ...

How did fixed exchange rates and the Golden Standard affect the U.S. economy as well as other countries.

Ricardian model - production possibilities frontier, Suppose there are two ...

Suppose there are two countries (home and foreign) and that two goods can be produced within those countries: machinery (M) and bread (B). Marginal product of labor (MPL) is given

PERFECT COMPETITION and THE SUPPLY CURVE & MONOPOLY, Chapter 13 / PERFECT C...

Chapter 13 / PERFECT COMPETITION and THE SUPPLY CURVE 1. Joe Brown’s dairy operates in a perfectly competitive marketplace. Joe’s machinery costs $500 per day and is the only fixe

Significance of stagnation in supply and demand calculus, Significance of S...

Significance of Stagnation in Supply and Demand Calculus Stagnation refers to failures of students in a grade/class or grade repetition. The objective of a course is to make c

PPC, could a nations production possibilities curve ever shift inward

could a nations production possibilities curve ever shift inward

Total cost function, A firm's production function is given by Q = √LK . Th...

A firm's production function is given by Q = √LK . The price of labour is w and the price of capital is r. a. The price of labour is $5 and the price of capital is $20. What is

Society of international financial telecommunications, Society of Internati...

Society of International Financial Telecommunications: The foreign exchange market operates worldwide, that is, the reach of the foreign exchange market is global. The foreign

Write Your Message!

Captcha
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