Part-11theory of the firmaif in an efficient brewing

Assignment Help Microeconomics
Reference no: EM13371630

Part-1

1. Theory of the Firm:

a) If, in an efficient brewing industry, firms operating at lowest possible average cost produce 20 barrels of beer per day and the market quantity demanded is 500 barrels per day, how many similarly sized firms will be competing in this market?

b) If, in an efficient water-supply industry, a firm that operates at lowest possible average cost produces 200 million litres of tap water per day and the market quantity demanded is 100 million litres per day, how many firms will operate in this market?

c) Given your answers above, name the market structure for the beer market and for the tap water market?

d) Define the break-even price in the beer market.

e) If the market price of beer falls below its break-even price (for example as a result of reduced demand), how will firms respond, in the short-run and the long-run?

2. Subsidies and income distribution:

a) Comment on the possible use of a subsidy to correct for market failurein the New Zealand housing market for first home buyers.(Your answer should include a sentence or two stating why you think there is failure in this market.)

b) Why is income inequality regarded by many people as a form of market failure?

c) Describe how tax creditsare used in New Zealand to modify the distribution of income

3. The final two marks are awarded, on an individual basis, for participation in marking other groups' scripts.

Part-2

QUESTION 1:MARKETS IN NEW ZEALAND

You will write about one of the following markets in Auckland:

1 Cafes
2 Boat designers
3 Bus services to Rotorua
4 Solar energy equipment
5 Rental property managers
6 Storage
7 Tree services
8 Bicycle retailing
9 Indian restaurants
10 Flights to London
11 Motels

a) Calculate: =MOD(your student ID num,11)
using EXCEL, to get a number from 1 to 11.

b) Identify your market; ie the market that matches your answer in (a).

c) Using information from the ‘Yellow Pages' or other appropriate sources; give an estimate of how many firms supply this market.

d) Identify a leading firm in this market.

e) Identify the competitivemarket structureforyour market, giving a reason for your choice.

f) Identify and define a different market structure, giving an example of another industry, not in the above list.

Considerchanged circumstancesthat would lead to ashift in the demand for, or the supply of, the goods or servicesproduced by the firms in your market.

(i) Identify and discuss one possible changethat would cause anincreasein demandin your selected market.Your answer should include a diagram showing the impact on equilibrium price and quantity supplied.

(ii) Identify and discuss one changed circumstancethat would cause a decrease in quantity demanded(but not a decrease in demand) in your selected market.

(iii) Suggest two different events - one resultingfrom a demand-shift and one from a supply shift - that would cause adecreasein market pricein your market.

h) Comment on whetherthe good or service supplied in your market is likely to be price elastic or price inelastic.

i) Identify periods (months of the year, or days of the week) ofpeakdemand and off-peak demand for your market. Notewhether demand is more price elastic in peak or off-peak periods. Also give an example of an industry not in the above list that does not operate for all of the year.

j) Comment on whetherthe outputs of your selected market are internationallytradable?Your answer should note whether local firms in your market are subject to international competition.

QUESTION 2:IMPERFECT COMPETITION:

You will write about the structure of this industry by discussing one of the following firms:

1 BNZ
2 Rabobank
3 Kiwibank
4 ASB Bank
5 HSBC
6 SBS Bank
7 TSB Bank

a) Calculate: =MOD(your student ID num,7)+1 using EXCEL, to get a number from 1 to 7.

b) Select thefirm that matches your answer in (a).

c) Identify:
• two services that your firm supplies to New Zealand firms or households
• another firm that is not a bank that supplies similar services
• one international service that your firm supplies
• the firm's ownership (NZ government, private, or foreign)

d) Identify a story (2010-14) in stuff.co.nzrelating tothe activities of your firm.

e) Using your company's website, your story from stuff.co.nz, andany other information you have gathered, comment, in two paragraphs, on the size of your firm in its market,and on any ways thatthe New Zealand government influences your firm's market. 

f) Comment on how depreciationof the $NZ exchange rate mightaffectyour firm's activities.

QUESTION 3:AIR POLLUTION

a) Use the Library'sNewzText-plus electronic database to select a 2013 or 2014story about air pollution in New Zealand or in China.
[Note: You are strongly encouraged to choose a different story from the stories your friends have chosen.]

b) In about 300 words, write about the
• argument presented in the article
• marginal private cost and marginal social cost of activities that cause air pollution
• any policies that governments or city councils could adopt to correct excessive pollution levels note that your answer will draw on other material; not only the article from (a)

QUESTION 4:IMPORTS

You will write about New Zealand's trade in with one of the following countries:

1 Spain
2 Portugal
3 Greece
4 France
5 Italy
6 Poland
7 Uruguay
8 Mexico
9 Colombia
10 Madagascar
11 South Africa
12 Turkey
13 Sri Lanka

a) Calculate:
=MOD(your student ID num,13)+1
using EXCEL, to get a number from 1 to 13.

b) Select the country that matches your answer in (a).

c) Using information from Infoshare (Statistics New Zealand), determine (for 2013) total imports from your selected country, total exports to your selected country, and the balance of trade between New Zealand and your selected country. [2 marks]

d) Using information from any source, identify one product that this country exports. Then, using data from Infoshare,determinethe amount of this product (in $) that New Zealand imported from your selected country in 2013.You will find the required Infoshare data under 'Exports and Imports', 'Harmonised Trade - Imports'.

e) Comment onthe coststhat New Zealandersincur - what New Zealanders give up - in order to enjoy the benefits of theseimported goods.

f) Identify the currency used by your selected country, and find (identifying your data source) the present exchange rate between the New Zealand dollar and that currency.

g) Comment on how a depreciation of your selected country's currency would affect its trade with New Zealand.

h) Identify three types of payment that are included in a country's current account.

i) Using tradingeconomics.com, comment on the current account balances (as a percent of GDP)since 2004for your selected country,andfor China, suggesting what problemthese two chartsreveal.

As part of your answer, you will need to click on the "Current Account" to GDPnumber in the website's summary table to see a country's chart. Copy and paste (or save and insert)each chart into your assignment, clearly identifying the charts' source website.

j) Suggest a solution to the problem revealed by these charts.

Reference no: EM13371630

Previous Q& A

  Assume that capacitor is completely discharged when tlt0

assume that capacitor is completely discharged when tlt0. plot these graphs in matlab or any other computing software

  Course description a development of value and distribution

course description a development of value and distribution theories. detailed analysis of the reactions of consuming

  The fourier transform is a powerful tool for converting

the fourier transform is a powerful tool for converting time-series data into its frequency components for the purpose

  Task 1 fill out surveyplease take the 122223 survey at

task 1 fill out surveyplease take the 122223 survey at survey.osble.orgindex.php?sid97282. please treat the question

  Bt co a beverage manufacturer manufactures one product -

bt co a beverage manufacturer manufactures one product - trublood. bt accounts for its finished goods inventory using

  Select any 8 articles of business management services amp

select any 8 articles of business management services amp operation management and risk management. selection of

  Assignation individual t5ai 4 variance analysis1tooltime

assignation individual t5ai 4 variance analysis1.tooltime has a standard of 1.5 pounds of materials per unit at 2 per

  Assignation individual ai 3 master and flexible budget1

assignation individual ai 3 master and flexible budget1. orange company is planning to sell 200 buckets and produce 190

  Asignacioacuten individual t3ai 2 relevant costratios

asignacioacuten individual t3ai 2 relevant costratios analysis1. the current ratio for a company with current assets of

  Asignacioacuten individual t2ai 1 cvpbep1 fixed costs are

asignacioacuten individual t2ai 1 cvpbep1. fixed costs are 1500000 and the contribution margin per unit is 150. what is

Reviews

Write a Review

 

Similar Q& A

  Find government purchases and government deficit-supply

Complete the table (find government purchases and government deficit/supply) by entering the government purchases and computing the budget deficit or surplus at each of the real GDPs.

  Why the former refer to non-expenditure costs

Implicit and explicit costs are different in that: implicit costs are opportunity costs; explicit costs are not. explicit costs are opportunity costs; implicit costs are not. the latter refer to non-expenditure costs and the former to monetary pay..

  Who is part of the economic system

Two of the major macroeconomic measures that tell us how 'healthy' the economy is are "the unemployment Rate" and "the rate of Inflation". How do they matter to you as an individual who is part of this economic system

  A classic example of this is typewriters and computers

Increases in structural unemployment can result from a recession but are more commonly associated with other changes, such as the development of new products that replace old products.

  Opportunity cost analysis-career objective

We make choices as consumers every day. Opportunity cost is defined as a person's "next best alternative" or "the cost of what you give up when you make a choice."

  How many spaghetti dinners should the firm make each day

How many spaghetti dinners should the firm make each day and what if the firm has avoidable fixed costs of $1562.50?

  How is timeframe important to your explanation

What was Morita drawing and what did he know about costing that the chain store representative was overlooking? Be sure to describe or chart the shape of Morita's costing sketch in your answer.

  Would people be willing to make a large sacrifice to help

Charles decides to go to an operabecause he does not want to waste the $100 he spent on the nonrefundable and nontransferable opear ticket, despite the fact that he would prefer to forgo the opera and go to a concert with Bette on the same night.

  Determine the industry supply curve

Assume the normal production process for beet sugar uses high sulfur oil for fuel and releases two units of sulfur dioxide to the air for every ton of beet sugar manufactured.

  Which is the most desirable alternative

Two hazardous environment facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows for each facility are shown in the table below.The company uses a MARR of 14%. Based on the rate of return, which is t..

  What will price and output be if there is no dominant firm

What will price and output be if there is no dominant firm Now assume that there is a dominant firm, whose marginal cost is constant at $6. Derive the residual demand curve that it faces and calculate its profit-maximizing output and price.

  In what sense is the price of tickets too low

In Rolling Stone magazine, several fans and rock stars, including Pearl Jam, were bemoaning the high price of concert tickets. One superstar argued, "It just isnt worth $75 to see me play.

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