What are the main two differences between the Free market and Command Market? (2 Marks) ...
- What are the main two differences between the Free market and
Command Market? (2 Marks)
- Calculate the values in this table (5 Marks)
|
Quantity |
Price |
FC |
TVC |
TC |
MC |
TR |
MR |
AFC |
AVC |
ATC |
|
1 |
30 |
10 |
10 |
X |
X |
|||||
|
2 |
25 |
15 |
||||||||
|
3 |
20 |
18 |
- With a 30% change in a product price, the demand for the product changes by 60%. What is the price elasticity of demand for this product? (Show Formula) (3 Marks)
- Define the following terms: (7 Marks)
- Law of demand
- Law of diminishing marginal return
- Equilibrium Price
- Using the concept of economies of scale, explain why it is difficult for smaller companies to compete with larger companies. Support your answer with a relevant diagram showing the concept of economies of scale. (3 Marks)
- With similar PPC curves in 2015, two countries are spending their resources on two different types of products. One country is spending more on consumer goods, and the other one is spending more on capital goods. Answer the following questions: (10 Marks)
- What does PPC stand for? ____________________________
- What is the difference between consumer good and capital good?
- PPC of which county shifts faster? Support your answer with enough explanation and relevant diagrams.
- Why is MC curve U shape? Explain with the support of relevant diagrams. (2 Marks)
- MC and AVC curves cross each other at the minimum point of AVC. Why? (2 Marks)
- What happens to the price and quantity of petrol in the market when electric cars become more popular? Explain AND draw supply and demand curves to support your answer. (6 Marks)
Homework Answers
Two differences between command market and free market are:
1). In free market the quantity and price is determined by the forces of demand and supply whereas in command market the quantity and price is determined by the government.
2). In free market there are large number of sellers and their motive is to maximise profit. Whereas in command market it is the government who owns monopoly in production and the motive is to maximise social welfare.
Add Answer to:
What are the main two differences between the Free market and
Command Market? (2 Marks)
...
Imagine a country where plane and train services between two main cities are both completely provided...
Imagine a country where plane and train services between two main cities are both completely provided by private companies, and, from a consumer perspective these services are perceived as substitutes. The demand for plane trips services is: ?1 = 3,000 − 200?1 + 30?2 + 2? (1) Where D1 is annual demand for plane trips, P1 is price of plane trips, P2 is price of train trips and Y is average annual consumer income. Assume the supply of plane trips...
1. Suppose supply in a market is Qs = P + Ps = 30, where P is the price and Q is the quantity. There is perfect competi...
1. Suppose supply in a market is Qs = P + Ps = 30, where P is the price and Q is the quantity. There is perfect competition in this market and demand is Qp = 80 - P + PD = 160 - 20. (D) The equations to the right are the inverse functions. (a) Calculate price and quantity in equilibrium. Illustrate the equilibrium in a figure. Mark carefully the slopes and in- tercepts (the intersections of the curves...
(1) Assignment 1 Questions: Imagine a country where plane and train services between two main cities...
(1) Assignment 1 Questions: Imagine a country where plane and train services between two main cities are both completely provided by private companies, and, from a consumer perspective these services are perceived as substitutes. The demand for plane trips services is: D1 = 3,000 - 200P, +30P, + 2Y Where D1 is annual demand for plane trips, P1 is price of plane trips, P2 is price of train trips and Y is average annual consumer income. Assume the supply of...
Imagine a country where plane and train services between two main cities are both completely provided...
Imagine a country where plane and train services between two main cities are both completely provided by private companies, and, from a consumer perspective these services are perceived as substitutes. The demand for plane trips services is: ?1 = 3,000 − 200?1 + 30?2 + 2? (1) Where D1 is annual demand for plane trips, P1 is price of plane trips, P2 is price of train trips and Y is average annual consumer income. Assume the supply of plane trips...
1. What is a monopoly? Name 2 differences between a monopoly and a perfectly competitive market....
1. What is a monopoly? Name 2 differences between a monopoly and a perfectly competitive market. 2. What is the profit maximizing condition for a price-setting monopoly? 3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide...
1. Due to a shift in consumer taste, the demand curve for product X shifted steadily...
1. Due to a shift in consumer taste, the demand curve for product X shifted steadily to the right. If one was to plot the price against quantity sold, would the resulting relationship approximate market demand curve? Explain. 2. Define economies of scope. Is this concept related to economies of scale? Explain. 3. Explain what is meant by the three stages of production? 4. A company has two million shares outstanding. It paid a dividend of $2 during the past...
Suppose the market demand curve shifts rightward and the market price remains the same. What happens...
Suppose the market demand curve shifts rightward and the market price remains the same. What happens to consumer surplus in this market? A. Does not change B. We do not have enough information to answer this question C. Increases D. Decreases If marginal costs are less than average costs, we know that A. Average costs are declining B. Average costs are negative C. Average costs are increasing D. Average costs are sunk The less-than-load (LTL) freight business in the US...
(i) Describe with appropriate diagrams, the concept of Raman scattering spectroscopy. Name 2 primary differences between...
(i) Describe with appropriate diagrams, the concept of Raman scattering spectroscopy. Name 2 primary differences between Raman and Infra-red spectroscopy. What is the fundamental property of a molecule that is probed by Raman scattering? [6 Marks] (ii) What are the three possible deviations from the Beer Lambert law? Explain why they might arise. Give an example using chemical equations of a deviation in the Beer Lambert Law due to a chemical shift. [
3. There are two types of firms in an industry. Type 1 firms have the costs...
3. There are two types of firms in an industry. Type 1 firms have the costs TC(n) = 625+ 0.25qi and type 2 firms have costs TC(2) 50000.52 The fixed costs for both types of firms are NOT sunk. (a) Derive each firm's ATC(g), AVC() and MC() functions and plot the curves on separate diagrams (b) Derive each firm's supply function q(p) and show the corresponding curves in the diagrams (c Suppose that there are 10 firms of each type....
2. No need to redo this one if you turned it in early! Assume the self-storage...
2. No need to redo this one if you turned it in early! Assume the self-storage industry is constant cost and perfectly competitive. A typical firm has a "storage yard containing, on average, 500 rental compartments, garage-like vaults in which to store golf clubs, skis and old clothing." See the photo on the next page. The following shows the cost curves for Airport Storage, a firm in the market, and the inverse demand and supply curve for the entire self-storage...
1. Suppose supply in a market is Qs = P + Ps = 30, where P is the price and Q is the quantity. There is perfect competition in this market and demand is Qp = 80 - P + PD = 160 - 20. (D) The equations to the right are the inverse functions. (a) Calculate price and quantity in equilibrium. Illustrate the equilibrium in a figure. Mark carefully the slopes and in- tercepts (the intersections of the curves...
(1) Assignment 1 Questions: Imagine a country where plane and train services between two main cities are both completely provided by private companies, and, from a consumer perspective these services are perceived as substitutes. The demand for plane trips services is: D1 = 3,000 - 200P, +30P, + 2Y Where D1 is annual demand for plane trips, P1 is price of plane trips, P2 is price of train trips and Y is average annual consumer income. Assume the supply of...
1. What is a monopoly? Name 2 differences between a monopoly and a perfectly competitive market. 2. What is the profit maximizing condition for a price-setting monopoly? 3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide...
3. There are two types of firms in an industry. Type 1 firms have the costs TC(n) = 625+ 0.25qi and type 2 firms have costs TC(2) 50000.52 The fixed costs for both types of firms are NOT sunk. (a) Derive each firm's ATC(g), AVC() and MC() functions and plot the curves on separate diagrams (b) Derive each firm's supply function q(p) and show the corresponding curves in the diagrams (c Suppose that there are 10 firms of each type....
2. No need to redo this one if you turned it in early! Assume the self-storage industry is constant cost and perfectly competitive. A typical firm has a "storage yard containing, on average, 500 rental compartments, garage-like vaults in which to store golf clubs, skis and old clothing." See the photo on the next page. The following shows the cost curves for Airport Storage, a firm in the market, and the inverse demand and supply curve for the entire self-storage...
Most questions answered within 3 hours.
-
A diamond's index of refraction for red light, 656 nm, is 2.410,
while that for blue...
asked 33 seconds ago -
Compare HPLC, SPE, and GC. Identify the differences, the
advantages, and the weaknesses of each method.
asked 1 minute ago -
Characteristic x-rays emitted by potassium have a wavelength of
0.374 nm. What is the energy of...
asked 4 minutes ago -
there is a function to create two random numbers between 1 and
25 and a function...
asked 22 minutes ago -
At a certain temperature, the ?pKp for the decomposition of
H2SH2S is 0.832.0.832.
H2S(g)↽−−⇀H2(g)+S(g)H2S(g)↽−−⇀H2(g)+S(g)
Initially, only...
asked 15 minutes ago -
Part 1.C&A Fast Food has four activities in serving a
customer: greet customer, take order, process...
asked 22 minutes ago -
Which attribute allows you to specify a custom "thumbnail" for
multimedia elements?
asked 1 hour ago -
How much 0.1200 M sodium hydroxide solution is need to titrate
14 mL of a 0.100...
asked 36 minutes ago -
An impulse is a change in momentum usually over
a short time. For which of the...
asked 41 minutes ago -
1a)When a 5000-kg roller coaster train full of riders approaches
the loading dock at a speed...
asked 1 hour ago -
The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim...
asked 56 minutes ago -
If the elasticity of supply of a good is ∞, then its
A. supply curve is...
asked 42 minutes ago