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

Modern theory of rent, what are the criticisms of modern theory of rent?

what are the criticisms of modern theory of rent?

calculate price elasticity of demand and supply, 1. Calculate price ...

1. Calculate price elasticity of demand and supply for the following functions when (a) P=8 and (b) Q=6. i. P= 40 - 0.5Q ii. Q= -40 + 0.75P iii

Describe price elasticity, Time is a significant determinant of price elast...

Time is a significant determinant of price elasticity.  If a price changes, it might take consumers a certain amount of time to discover alternative lifestyles or commodities to ac

Equilibrium point of a monopoly, Using a diagram explain the equilibrium po...

Using a diagram explain the equilibrium point of a monopoly

What is the distinguishing characteristic of institutions, What is the dist...

What is the distinguishing characteristic of institutions in the public purpose sphere? The distinguishing characteristic of institutions in the public purpose sphere is that t

Economics, what is micro economics

what is micro economics

PPC, could a nations production possibilities curve ever shift inward

could a nations production possibilities curve ever shift inward

Marginal Cost, Can marginal cost be constant? If so, does this mean that ma...

Can marginal cost be constant? If so, does this mean that marginal cost are equal to average variable cost?

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

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