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

Supply, Clearly explain the distinction between supply, demand and equilibr...

Clearly explain the distinction between supply, demand and equilibrium price.

Consumer Behavior, Monica consumes only goods A and B. Suppose that her mar...

Monica consumes only goods A and B. Suppose that her marginal uility from consuming good A is equal to 1/Qa, and her marginal utility from consuming good B is 1/Qb. If the price of

Current account - balance of payments, Current Account: The Current Ac...

Current Account: The Current Account can be broken down into two parts, viz., one, balance of trade, and, two, balance on invisibles. The Balance of Trade (BOT) deals only wit

Explain the generalised least square procedure, (a) What is  meant by heter...

(a) What is  meant by heteroscedasticity and what are the consequences of applying OLS estimation in its presence? (b) Explain in details the Generalised least Square procedure

Corporations price and output in the short run, Consider that the governmen...

Consider that the government tells a large monopolistic firm that maximizes profits that it has to pay a fee to the Reelect the President Committee same to one third of its total p

Exceptional demand, how to differentiate the exeptional demand and excepti...

how to differentiate the exeptional demand and exceptional supply?

Types of price discrimination, First Degree Price Discrimination - The mono...

First Degree Price Discrimination - The monopolist sells different units of the commodity at different prices which differ from person to person. Second Degree Price Discriminat

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