Assignment Questions: (Marks: 15) A company issued 10-year bonds three years ago with a coupon of 7 percent. If the current market rate is 8 percent and the bonds make annual coupon payments, what is the current market value of one of these bonds? what is the current market value of one of these bonds […]
Tag Archives: Marginal
Choose an economic term you have learned new in the video and what does it mean.
Choose one of the following videos and answer the questions below 4.6 The Relationship Between Average Total Cost and Marginal Cost – YouTube Episode 21: Accounting Costs vs. Economic Costs – YouTube What is the video talking about (summarize it using your own words not less than 100 words). (1 mark) Choose an economic term […]
Complete the following table describing the short-run daily costs of the Jeans Company.
Complete the following table describing the short-run daily costs of the Jeans Company. Labour Output Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost Marginal Product of Labour 0 0 0 1 10 15 50 2 50 30 3 110 50 4 160 60 5 200 65 6 […]
Discuss some policy options a government could have to intervene in such market and prevent the monopoly creation.
Assignment Questions: Q1. You have been hired as an economic consultant by a price-taking (a perfectly competitive) firm that produces T-shirts. The firm already has a factory, so it is operating in the short-run. The price of T-shirt is $9, the hourly wage is $24, and each T-shirt requires $1 worth of material. The following […]
What is monopoly-Why a monopolist is referred as price maker?
Read the following to prepare for this week: Survey of Economics, Chapter 7: Monopoly and Price Discrimination Video: MIT OpenCourseWare video lecture series, “Monopoly” 9.3 Test your Knowledge (Question): Watch the following video(s), which you can access in the Weekly Media object or by clicking on the link(s) below: and answer the question. : Q1 […]
Explain why the supply curve shifts upward when quantity increase
Economics Question 1 Using Figure 1. in Class Note 2 to explain why the average cost is initially high, then goes down, and is back up again? (Make sure you understand the concepts of total cost, fixed cost, and variable cost). 2 Define marginal cost 3 Use Figure 2 in Class Note 2 to describe […]
How does imperfect competition lead to price exceeding marginal cost-Why is that a problem for society at-large?
Answer each of these questions in no more than a few paragraphs 1. Describe as precisely as you can: a) Some of the merits of perfect competition b) Some of the impediments to achieving perfect competition c) Some of the harms of imperfect competition 2. Why is the equality of price and marginal cost important? […]
Explain the difference between Summary table and Contingency Table
Explain the difference between Summary table and Contingency Table What is the Marginal Distribution? What is the Joint Distribution? In the example below, calculate the Marginal, Joint, and Conditional Distributions of the variables:
