Microeconomics past exam paper

Don’t change; Don’t change), (Decrease; Decrease) b) (Increase; Don’t change), (Don’t change; Decrease) c) (Decrease; Don’t change), (Don’t change; Decrease) d) (Increase; Decrease), (Decrease; Increase) SECTION B All questions in this section are worth the same number of marks. For each of the following questions: Consider the statements made by Alan Accountant and Edwina Economist. Say whether you believe each statement is correct or incorrect. Briefly explain your answer. Note that most of the marks will be given for your explanation.
Question Bal Alan Accountant and Edwina Economist are discussing the government’s recent decision to stop paying subsidies to home-owners who buy solar panels to provide a source of power to their homes. Alan says: ‘This change in policy will not have a big effect. Because supply of solar panels is price-elastic, therefore removing the subsidy only causes a small decrease in the quantity of panels sold. ‘ Edwina disagrees. She says: ‘The fact that supply is price-elastic means that the change in policy will cause a relatively large decrease in the quantity of panels sold. ‘ Question 82
Alan Accountant and Edwina Economist are advising their friend Marci Manager on operating her business. Marci sells ice-creams, and because of their distinctive flavors, the business has a high degree of market power. Marci is trying to decide whether to increase her daily sales as a way of earning higher profits. Alan says: ‘Marci can produce the extra ice-creams at the same marginal cost as the ice-creams she is already producing. Hence she will definitely earn higher profits by increasing her sales. ‘ Edwina disagrees. She says: ‘That Marci has a constant marginal cost of supply does mean that her TACT will decrease when she sells more.

But we would need more information to know that her profits would increase when she sells more ice-cream. ‘ Question 83 Alan Accountant and Edwina Economist are advising their friend Gerry Gamekeeper who is going to play in the World Championship of ‘Scissors, Paper, Rock. Gerry will be playing a sequence of games against each opponent in the contest. Edwina Economist says: ‘My advice is to choose randomly between the three strategies in each game you play. ‘ Alan Accountant disagrees. He says: ‘If you choose randomly you will only have a one-third chance of winning each game. But I have a better strategy.
The average fee increase at private schools was about 5 per cent, compared to 8 per cent sat year, with the impact of the economic downturn tempering fee rises. ‘ ‘Teacher pay blamed tort private school tees hike’, The Age, January 7 2010, page 3 Use the model of a profit-maximizing firm with market power to explain why private schools would want to increase school fees in response to an increase in teacher salaries. Part B (10 marks) Stanley has begun planning for selling hamburgers at the 2012 Grand Final.
He thinks that there are two types of consumers, Stalled fans who are willing to pay $5 for a hamburger, and Colliding fans who are willing to pay $3. The MAC of making a hamburger is $2. At the same time, Townie, who is planning to sell Pepsi and chips at the Grand Final, suggests to Stanley that they should form a partnership. Preferences of Stalled and Colliding fans for these items are described in the table below. There are 200 Stalled fans and 50 Colliding fans who are potential customers.
Pepsi costs $1 for Townie to obtain, and hot chips cost her $1 to make. Hamburger Pepsi Hot chips Stalled fans $5 $3 $2 Colliding fans a)(5 marks) Suppose Stanley and Townie were to sell hamburgers, Pepsi and hot chips as separate items. What would be the profit maximizing price to charge for ACH item? B) (5 marks) Could Stanley and Townie choose to bundle Just two items and make higher profits? What explains this result?
Question CO (1 5% of total marks) Part A (7 marks) ‘To spirit or not to spirit, that is the question… The speakers of Carton’s Little Italy have long been considered a blight by many Millenarian, and recently the restaurant owners who employ them have come to think they might have a point… So on Tuesday afternoon the owners of eight Italian restaurants on the eastern side of Logon street… Met to discuss what to do about a practice that is both a tradition and a

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code SUCCESS