Economics of production

marginal revenue of $10 for the last unit produced and sold. What is the average revenue per unit, and how many units were sold? a. $5 and 50 b. $5 and 100 c. $10 and 50 d. $10 and 100 When a profit-maximizing firm in a competitive market has zero economic profit, accounting

Exhibit 1 1. (Exhibit 1: Total Product) Between points A and B the marginal product of labor is: A) increasing. B) zero. C) falling. D) infinite. Ans: C Exhibit 2: Total Product and Marginal Product | Labor per Day | Total Products (units per period) | 0 | 0.0 | 1 | 1.0 | 2 | 3.0 | 3 | 7.0 | 4 | 9.0 | 5 | 10.0 | 6 | 10.7 | 7 | 11.0 | 8 | 10.5 | 2. (Exhibit 2: Total Product and Marginal Product) The marginal product of the second worker is: A) 1

supplies of drinking water and non-potable recycled or stormed water are sometimes available. In these circumstances separate meters are installed for two different grades of water. 2. Describe the method of production in your industry for a typical firm. That is, is the method of production highly capital intensive? Is it labour intensive? Does a typical firm operate on a large scale? 3 marks Water supply – regard SA Water as a typical firm Grain growing – a typical firm is a typical farm

Name: Mirwan Md Nahar Student ID: 752521 Tutor’s name: Joey Maloney Tutorial day: Friday Tutorial time: 12pm Subject: ECON10004 PART A Question 1 1a) The harmful effects on the environment and surrounding agricultural lands are the negative externality effects associated with coal-seam gas. This stems from problems such as the exhaustion and/or contamination of clean water resources. 1b) As seen from figure one, negative externality creates a social marginal cost that is substantially

Value creation Two basic conditions determine a firm's profits: the amount of value customers place on the firm's goods or services and the firm's costs of production. In general, the more value customers place on a firm's products, the higher the price the firm can charge for those products. Note, however, that the price a firm charges for a good and service is typically less then the value placed on that good or service by the customer. This is so because the customer captures some of that value

Week 1 Conceptual Exercise: Consumer Behavior Theory 1) A decrease in the price of a particular good, with all other variables constant, causes a. a shift to a different demand schedule with higher quantities demanded b. a shift to a different demand schedule with lower quantities demanded c. a movement along a given demand curve to a lower quantity demanded d. a movement along a given demand curve to a higher quantity demanded e. no movement along a given demand

Factors of Production: Factors of production impact the fabrication of commodities. These factors are the inputs for the creation of goods and services applied to make an economic profit (Investopedia, n.d), and fall within four categories—land, labor, capital, and entrepreneurship (Nickolas, 2015). Understand-ing these inputs is paramount as incremental changes in a cost structure can determine a profit and a loss (Mohr, n.d.). For Johnson & Johnson (J&J), the three key factors are land, labor

Sovereignity- supreme & independent power or authority in government as possessed or claimed by a state or community. Being sovereign nations can be more indifferent to the interests of others. As long as nations exist, international economics will always need a separate body of analysis distinct from the rest of economies. Globalization- worldwide integration & development; extending to other or all parts of the world Euro Benefits * Low interest rates due to a high degree of

average cost Productive efficiency References John Sloman, Economics William A. McEachern, Economics Richard G. Lipsey and K. Alec Chrystal, Positive Economics G. F. Stanlake and Susan Grant, Introductory Economics Michael Parkin, Economics David Begg, Stanley Fischer and Rudiger Dornbusch, Economics © 2011 Economics Cafe All rights reserved. Page 1

break-even analysis) can provide a simple, yet powerful quantitative tool for managers. In its simplest form, break-even analysis provides insight into whether or not revenue from a product or service has the ability to cover the relevant costs of production of that product or service. Managers can use this information in making a wide range of business decisions, including setting prices, preparing competitive bids, and applying for loans. BACKGROUND