Economics United States Question Answer 2022

Running head: ECONOMICS
Economics
Name of the Student
Name of the University
Student ID

ECONOMICS1
Table of Contents
Question 1..................................................................................................................................2
Question 1.1...........................................................................................................................2
Question 1.2...........................................................................................................................2
Question 2..................................................................................................................................7
Question 2.1...........................................................................................................................7
Question 2.2...........................................................................................................................7
Question 2.3.........................................................................................................................10
Question 3................................................................................................................................12
Question 3.1.........................................................................................................................12
Question 3.2.........................................................................................................................13
Question 4................................................................................................................................14
Question 4.1.........................................................................................................................14
Question 4.2.........................................................................................................................14
Question 5................................................................................................................................15
References................................................................................................................................17

ECONOMICS2
Question 1
Question 1.1
The three basic questions of economies are what to produce, how to produce and for
whom to produce. Considering from the view point of a firm, question 1 is related to the
decision of firm in related to production of particular good or service. Firm often has to
decide whether to produce a different or new good or stop producing a particular good or
service.
The second question is related to selection of particular technology of production.
This also involves managing production activities. The decision involves hiring of
appropriate worker, employment of raw material like capital equipment and others (Fine
2016). A firm need to carefully chose whether to adapt capital-intensive technology or labor
intensive technology such that output can be maximized given the resources.
The third question is related to decision of the firm regarding market segmentation.
Here the firm needs to decide what particular market segment the firm should focus on and
who are the targeted group of customers. The right decision at this stage helps the firm to
maximize revenue.
Mangers play an important role in decision making process of firm. It is responsibility
of the manger to allocate scarce resource efficiently. Manger monitors and guides people in
an organization.
Question 1.2
Demand and supply condition are given as
Qd =2400−8 P
QS =−1000+8 P

ECONOMICS3
Q: Number of business that need services
P: Monthly fee in rands
Total cost per month in rands in the short run
TC =30000+70 Q
1.2.1
2400−8 P=0
¿ , 8 P=2400
¿ , P= 2400
8
¿ , P=300
At average monthly fee of 300 rands would demand equal zero.
1.2.2
−1000+8 P=0
¿ , 8 P=1000
¿ , P= 1000
8
¿ , P=125
At average fee of 125 rands monthly supply would equal to zero.
1.2.3
At equilibrium,
Demand=Supply