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HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION 1 HI5003 Economics for Business: First Tutorial Submission Question, T1 2020 Second Tutorial Submission Question Assessment Question Week 7: Question 2:...

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HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION


1
HI5003 Economics for Business: First Tutorial Submission Question, T1 2020

Second Tutorial Submission Question

Assessment Question Week 7:

Question 2: Monopolistic and Oligopoly firms


Question 1
(i) Use the graph below to explain the output, profit and loss conditions for
monopolistically competitive firms. Show your work where appropriate in
eference to the Graph.

Firm Lan T-shirt monopolistic competitive firm


(ii) With examples, examine the ba
iers to business entry for imperfect
competition firms
2
HI5003 Economics for Business: First Tutorial Submission Question, T1 2020
Assessment Question Week 8:

Marco-economics:
Measuring the size of the economy

Question 2

The table below is extracted from Goodland Republic Bureau of Statistics records for
XXXXXXXXXXUse the information to answer the questions that follow.

Goodland Economy 2013 and 2018




Examine the status of the economic welfare in Goodland Republic in 2018 based on
your GDP deflator, nominal GDP and Real GDP. Also, explain the reasons why it is
necessary to calculate real GDP. Show your work.

Assessment Question Week 9:

Business cycles and economic growth

Question 3

Examine the fundamental causes of a nation’s business cycle fluctuations. Also,
examine the relationship between total spending by government and consumers in a
nation and the location of the countries’ GDP on the business cycle.


3
HI5003 Economics for Business: First Tutorial Submission Question, T1 2020
Assessment Question Week 10:
Inflation and Unemployment
Question 4

1. Suppose you have $200,000 in a bank term account. You earn 5% interest per
annum from this account.

You anticipate that the inflation rate will be 4% during the year. However, the
actual inflation rate for the year is 6%.

Calculate the impact of inflation on the bank term deposit you have and
examine the effects of inflation in your city of residence with attention to food
and accommodation expenses.

2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian
population in Australia over 15 years of age was 20.8 million.

Of this population of 20.8 million Australians, 13.5 million were employed and
0.7 million were unemployed.

Calculate Australia’s labor force and the number of people in the civilian
population who were not in the labor force? Also, with examples examine the
causes of structural unemployment in Australia


4
HI5003 Economics for Business: First Tutorial Submission Question, T1 2020
Assessment Question Week11

A simple model of macroeconomics: Fiscal policy and Monetary Policy

Question 5

Use the Aggregate supply and Aggregate Demand Model below to answer the
questions that follow.
Aggregate Supply and Aggregate Demand Model
(i) Examine the influence of government expenditure on investment in a nation.
Use Jot Inc. Ltd a multinational construction company in which you are the
Chief Exec of the firm that that is highly diversified and recieves funds to
construct highways and other government funded projects. Also, explain the
factors that cause the Aggregate Demand curve to be downward sloping left
to right.

ADDENDUM (Co
ection): Assessment Question Week 8: Question 2
XXXXXXXXXXCo
ection
Note: $2, XXXXXXXXXXand NOT $ 2,450.00
Answered Same Day Jun 13, 2021 HI5003

Solution

Komalavalli answered on Jun 17 2021
159 Votes
Assessment Question week 7:
Question 2: Monopolistic and oligopoly firms
Question 1
(i)
Economic Loss in short run (ATC2)
From below Lan t-shirt firm’s graph we can see the firm is producing T shirts using Average total cost curve (ATC2) .The equili
ium quantity of firm production is at 40 quantity of Lan T-shirt production a point where Marginal revenue equals marginal cost The firm will sell these 40 units of output at price 20 where it matches the demand curve. Difference between the price and ATC2 level indicates the firm profit or loss level. So, the profit or loss =20 – 22.5 =2.5 in short run. Hence the firm will face loss of 2.5
Short run Monopolistic competitive firm(ATC1)
The profit maximization condition for monopolistic firm is MR=MC with Average total cost1, from above Lan t-shirt firm’s graph at 40 quantity of Lan T-shirt production Marginal revenue curve equals Marginal cost curve, so the monopolistic firm optimal production of T shirt is 40 units. The firm will sell these 40 units of output at price 20. Economic profit of the firm is difference between the price and ATC1 which is equal to 2.5 (20 – 17.5) in short run.
Long run Monopolistic competitive firm
In long run the firm economic profit has attract many firms in the market, because of this monopolistic firms face decrease in demand for their products in the market. So, the firms demand curve will shift down from DD to DD1 where demand curve equals ATC1 curve, which indicates zero economic profit. This was shown in the below graph.
(ii) Imperfect competition occurs when one of the conditions of perfect market violates. Types of imperfect competition markets are monopoly, duopoly, oligopoly, monopolistic market. Let us consider government owned railway, there is a entry restriction in railway sector, because it involves large amount of firms investment before the firm earns revenue from it, there is also legal restriction that the firm should face while entering in to this sector.
Assessment Question Week 8:
Marco-economics:
Measuring the size of the economy
    Item
    Price 2017 (base year)
    Production in 2017
    Total production in 2017
    Rice (tons)
    1.50
     50,000
    75000
    Wheat (tons)
    2.00
     1,00,000
    200000
    Tractor mid-size(units)
    23000.00
     50,000
    1150000000
    Cotton (tons)
    100.00
     1,20,000
    12000000
    Used cars
    5000.00
     5,000
    25000000
    Manufacture garments (tons)
    50.00
     1,50,000
    7500000
    Eggs (trays
    2.50
     2,000
    5000
    coca cola (liters)
    0.80
     6,000
    4800
    pesi cola (liters)
    1.10
     700
    770
    Beef (tons)
    6.50
     5,000
    32500
    Second hand cloths (tons)
    15.00
     500
    7500
    Alcoholic Beverages (liters)
    3.25
     500
    1625
    Milk (litres)
    2.30
     7,000
    16100
    Â 
    Â 
    Nominal...
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