( there is no relationshipbetween the two products.
1. The demand equation faced by DuMont Electronics for its personal computers is given by P = 10,000 – 4Q.
a) Derive the total revenue function.
b) Derive the marginal revenue function.
c) At what price and...
. calculate marginalproduct (MP) and averageproduct (AP) from this data (show all work). (5)
b. Where does diminishing returns set in? (3)
c. Of the two, MP and AP, which one is causing the other to increase and decrease? Explain your choice. (5)
A. See table for...
information about the features and relationshipbetween these three concepts we have just defined.
Figure 4.3: Total product, marginalproduct and averageproduct
TOPIC 4 THEORY OF PRODUCTION AND COST
Based on Table 4.1 and Figure 4.3, we can see that total product increases rapidly with...
important relationshipsbetween production and cost curves in the short run involves the effect of the law of diminishing marginalproduct on the marginal cost of production.” Be sure to talk about the relationshipbetweenmarginalproduct and marginal cost and the relationshipbetweenaverage...
. Car & petrol.
7. Demand function :- It explainsrelationshipbetween demand of a commodity and its determinants.
Dx = f(Px,Pa,Pb ………….Pn,income, taste, fashion etc.)
8. Demand Schedule :- It is a tabular presentation which shows the different quantities of a commodity bought at...
maximize profit is to reduce marginal cost to zero.
b. "Because a monopolist is the only supplier of a well-defined product, there is no limit to the price it can charge". Is this statement true or false? Explain.
This statement is true. In a monopoly market, one business owns the entire...
(ii) What is the relationshipbetweenaverage and marginalproduct at output
rates up to 14 boats per week? Why?
Ans: the marginalproduct of labour is increasing and and the marginalproduct of labour is greater than the averageproduct of labour. This means that the averageproduct of labour...
those defined for total product, averageproduct and marginalproduct. The distinction between short run and long run relationships also applies to both topics.
Cost Definitions used to explain Short Run Cost behaviour
The short run requires at least one input factor to be fixed. The following...
the long – run if the total costs exceed total revenue.A firm cannot avoid its fixed cost in the short run. In the long run a firm can decide to exit the market losing all revenue but also saving both fixed costs and variable cost when TR<TC. 5. Define and explain the relationshipbetween...
anything during a specific period of time because of current market conditions and the firm still incurs fixed costs whereas a long run decision the firm does not incur fixed costs. Because they would be better off permanently shutting down.
5. Define and explain the relationshipbetween total...
quantity supplied’ with the help of a supply schedule. 
How is equilibrium price determined under perfect competition?
12. Explain the relation betweenmarginal revenue and average revenue when a firm is able to sell more quantity of output
(i) at the...
Calculate: • average and marginalproduct • Marginal cost of hiring an additional worker Explain the relationshipbetween • averageproduct and average variable cost • marginalproduct and marginal cost
Prices and Markets Demonstration Lecture Questions
Topic six: Perfect Competition...
). Explain how total product, averageproduct, and marginalproducts are changing. Pay special attention to the relationshipbetween total and marginalproducts, and average and marginalproducts.
The marginalproduct eventually declines as all other things are held equal. The averageproduct...
but not in the long run.
What is the relationshipbetween a perfectly competitive firm’s marginal cost curve and its supply curve?
A firms marginal cost curve is equal to its supply curve for prices above average variable cost.
The market supply curve is derived
By horizontally adding the...
questions such as why and how and going a step further by applying them to various situations.
Some of these concepts are:
o Marginal and average cost etc and their relationship.
o Concept of equilibrium in microeconomics and in macroeconomics.
o Concepts of elasticity.
Q.1. what are indifference curves?
Answer: an indifference curve shows the ordering of preferences by a consumer i.e. it indicates the combination of two productsbetween which the consumer is indifferent, or combination which will yield the same level of satisfaction.
marginal revenue and marginal cost at that level of output? (Answer: Marginal revenue must be greater than marginal cost.)
6. If a monopolist operating in the short run decreases output from a given level, what must be the relationshipbetweenmarginal revenue and marginal cost at that level of...
calculate total, average and marginal physical product;
explain the relationships among total, average and marginal physical product;
identify the stages of production as they relate to total, average and marginalproduct;
calculate total, average, marginal and...