What would happen to total revenues

Assignment Help Microeconomics
Reference no: EM131451153

Please discuss the following 4 questions using concepts and knowledges you learned from this course. The word limit is 1000words in total. Each question worth 10 marks.

1. You and your friend Joe have identical tastes. At 2 pm, you go to your local Ticketmaster outlet and buy a $30 ticket to an AFL game to be played that night in Launceston, 200 kilometres north of your home in Hobart. Joe plans to attend the same game but, because he cannot get to a Ticketmaster outlet, he plans to buy his ticket at the game. Tickets sold at the game cost only $25, because they carry no Ticketmaster surcharge. (Many people nonetheless pay the higher price through Ticketmaster, to be sure of getting good seats.) At 4 pm an unexpected hailstorm begins, making the prospect of driving to Launceston much less attractive than it was before (but assuring the availability of good seats). If both you and Joe are rational, is one of you more likely to attend the game than the other?

2. Nancy and Lucy are studying economics. Nancy takes 4 hours to write an assignment and two hours to complete a set of tutorial questions. Lucy takes 6 hours to write an assignment and 2 hours to complete a set of tutorial questions. State whether either woman has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Why would Nancy and Lucy never agree to specialise and then exchange economics assignments for economics tutorial questions if one economics assignment could be swapped for three economics tutorials?

3. The table below shows the number of croissants bought in Geelong, Victoria, each day at a variety of prices.

PRICE OF CROISSANTS ($)

NUMBER OF CROISSANTS PURCHASED PER DAY

6

0

5

3000

4

6000

3

9000

2

12000

1

15000

0

18000

a) Graph the daily demand curve for croissants in Geelong.
b) Calculate the price elasticity of demand at the point on the demand curve at which the price of croissants is $3.
c) If all bakeries increased the price of croissants from $3 to $4, what would happen to total revenues?
d) Calculate the price elasticity of demand at a point on the demand curve at which the price of a croissant is $2.
e) If all bakeries increased the price from $2 to $3 per croissant, what would happen to total revenues?

4. In which type of restaurant would you expect the service to be more prompt and courteous: an expensive gourmet restaurant or an inexpensive cafe? Explain.

Verified Expert

This assignment looks at basic concepts in Microeconomics. These include utility, opportunity cost, absolute advantage, comparative advantage, demand curve , elasticity of demand, willingness to pay. All concepts are woven through everyday situations which makes the concepts real and easy to apply

Reference no: EM131451153

What would happen to total revenues

ECO101 Microeconomics Graph the daily demand curve for croissants in Geelong and calculate the price elasticity of demand at the point on the demand curve at which the price o

Calculate the accounting and economic profit for hair salon

Calculate the accounting and economic profit for the hair styling salon. Show your work. Based on your answers in part (a), should the owner close this salon or continue with

Explain and assess communication dynamics of an organization

Analyze and assess the communication dynamics of an organization to conduct a communication audit. Apply appropriate communication media and methods according to the situation

Explain each violation of twitter best practices

Your Task: Discuss each violation of Twitter best practices, or summarize in general why these tweets are potentially damaging to their authors. How could the Twitter users

What trait you believe are good to have in brand personality

Review what traits you believe are good to have in a brand personality. Analyze how this brand personality impacts competitive positioning.  How does this ad impact your belie

Do you think that the ceo would approve the given programs

Think about a company that offers incredible benefits to their employees, do you think that the CEO would approve these programs if the manager suggesting them couldn't pro

What impact does time have on the slope of demand curve

What impact does time have on the slope of demand curve and why? Why does the definition of the market impact the elasticity? Is the elasticity of a linear demand curve consta

How imitable is johnson and johnsons competitive advantage

What are the resources and capabilities that underlie the competence? Where do these resources and capabilities come from? How imitable is Johnson & Johnson's competitive adv

Reviews

Write a Review

 
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