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

Problem in measuring depreciation, Economists view depreciation as capital ...

Economists view depreciation as capital consumption for them, there are two distinct ways of charging for depreciation (1) the depreciation of equipment must equal its opportunity

Explain why despite decreases in marginal cost, Problem 1: How can a ma...

Problem 1: How can a manager of a supermarket maximise total revenue using various concepts of elasticity of demand? Use examples to illustrate. Problem 2: What are the

When is the price of a product demand determined, When is the price of a pr...

When is the price of a product demand determined? The price of a product is demand defined while the product is in fixed supply. This means that the price of the product is defin

Elasticity, How much would the price of Good Z (Pz) have to change in order...

How much would the price of Good Z (Pz) have to change in order to increase the consumption of Good C by twenty five percent (25%)?

Select demand schedule and a supply schedule for apples, •Create a demand s...

•Create a demand schedule and a supply schedule for your product.. •Using these schedules, draw a demand curve and a supply curve using PowerPoint or Excel. Use these to determine

Physical science, What is the formula for heat and how do you solve it?

What is the formula for heat and how do you solve it?

Analysing the digital economy relative to e business, Problem: a) What ...

Problem: a) What factors would you consider when analysing the digital economy relative to e business? b) "The growing use of the internet by consumers and businesses has re

Identify the four institutional requirements of markets, Identify the four ...

Identify the four institutional requirements of markets. The four institutional needs of markets are:  Pprivate property, Social institutions of trust, Good physical i

Determinant of price elasticity of supply, Assume there is a remote area in...

Assume there is a remote area in china with high population.The area is composed exclusively of apartments and is populated by low-income residents .The people tend to stay in that

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