Microecon_group_assignment
BM103 – Microeconomics (Group Assignment)
Group Member Name:
1. Tan Yi Shyan
2. Cheong Pui Fun
3. Ewe Chea Ying
4. Khoo Seok Yi
5. Oh Wang Sin
M2013-0071
M2013-0096
M2013-0097
M2013-0109
M2013-0110
Due Date: 25 June 2013
Lecturer: Mr. Chin Kong Yooi
Content
No.
Title
Pages
1.
Section A:
Question 2
2
2.
Section B:
Question 1
Question 2
3-4
3.
Section C(1):
Question A
Question B
Question F
Question G
Question I
5-7
Section A
Question 2:
Quantity
(Unit)
Total
Revenue
(RM)
Average
Revenue
(RM)
Marginal
Revenue
(RM)
Total Cost
(RM)
Marginal Cost
(RM)
1
30
30
30
55
0
2
60
30
30
85
30
3
90
30
30
100
15
4
120
30
30
120
10
5
150
30
30
145
25
6
180
30
30
180
35
a)The firm is most likely to be operating in a perfect market because of the Average Revenue and Marginal Revenue from the table above are same under perfect market.
b) Two important characteristics of such a firm are firm sell identical product and cannot influence the market price.
c) The equilibrium output of this firm is at 2 units where Marginal Revenue equal to Marginal Cost. It is the profit maximizing output level.
Section B
Question 1:
Quantity Consumed (Units)
1
45
11.25
80
26.67
22
11
2
40
10
70
23.34
20
10
3
25
6.25
60
20
18
9
4
20
5
50
16.67
16
8
5
16
4
40
13.34
14
7
6
12
3
30
10
12
6
7
9
2.25
20
6.67
10
5
8
6
1.5
10
3.34
8
4
9
4
1
0
0
6
3
10
2
0.5
0
0
4
2
a) Marginal Utility per RM of good
A: (RM 4x3) + (RM 3x2) + (RM 2x5) = RM28
B: (RM 4x1) + (RM 3x6) + (RM 2x4) = RM30
C: (RM 4x4) + (RM 3x4) + (RM 2x3) = RM34
b) From the three choices, combination B is the equilibrium condition because it fulfils the condition of expenditure.
Question 2:
a) The consumer experience equilibrium when the indifference curve attainable touches the budget line at point B.
b)
Group Member Name:
1. Tan Yi Shyan
2. Cheong Pui Fun
3. Ewe Chea Ying
4. Khoo Seok Yi
5. Oh Wang Sin
M2013-0071
M2013-0096
M2013-0097
M2013-0109
M2013-0110
Due Date: 25 June 2013
Lecturer: Mr. Chin Kong Yooi
Content
No.
Title
Pages
1.
Section A:
Question 2
2
2.
Section B:
Question 1
Question 2
3-4
3.
Section C(1):
Question A
Question B
Question F
Question G
Question I
5-7
Section A
Question 2:
Quantity
(Unit)
Total
Revenue
(RM)
Average
Revenue
(RM)
Marginal
Revenue
(RM)
Total Cost
(RM)
Marginal Cost
(RM)
1
30
30
30
55
0
2
60
30
30
85
30
3
90
30
30
100
15
4
120
30
30
120
10
5
150
30
30
145
25
6
180
30
30
180
35
a)The firm is most likely to be operating in a perfect market because of the Average Revenue and Marginal Revenue from the table above are same under perfect market.
b) Two important characteristics of such a firm are firm sell identical product and cannot influence the market price.
c) The equilibrium output of this firm is at 2 units where Marginal Revenue equal to Marginal Cost. It is the profit maximizing output level.
Section B
Question 1:
Quantity Consumed (Units)
1
45
11.25
80
26.67
22
11
2
40
10
70
23.34
20
10
3
25
6.25
60
20
18
9
4
20
5
50
16.67
16
8
5
16
4
40
13.34
14
7
6
12
3
30
10
12
6
7
9
2.25
20
6.67
10
5
8
6
1.5
10
3.34
8
4
9
4
1
0
0
6
3
10
2
0.5
0
0
4
2
a) Marginal Utility per RM of good
A: (RM 4x3) + (RM 3x2) + (RM 2x5) = RM28
B: (RM 4x1) + (RM 3x6) + (RM 2x4) = RM30
C: (RM 4x4) + (RM 3x4) + (RM 2x3) = RM34
b) From the three choices, combination B is the equilibrium condition because it fulfils the condition of expenditure.
Question 2:
a) The consumer experience equilibrium when the indifference curve attainable touches the budget line at point B.
b)
References: 1) Deviga Vengedasalam, Karunagaran Madhavan & Rohana Kamaruddin (2008) . Microeconomics. Oxford Fajar Sdn. Bhd. 2) http://www.macmillan-caribbean.com/uploads/8e381573-a307-4c0b-bf56-06f5c2c99c98_CSEC%20Eco%20pages.pdf 3) http://www.meritnation.com/discuss/question/3332996/0/difference-between-cardinal-utility-and-ordinal-utility 4) http://www.wisegeek.com/what-are-barriers-to-entry.htm