Running Head: ECONOMICS ASSIGNMENT 14 14 Running Head: ECONOMICS ASSIGNMENT 14 14 Running Head: ECONOMICS ASSIGNMENT Economics Assignment Name of the Student Name of the University Course ID
Added on 2021-06-18
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Running Head: ECONOMICS ASSIGNMENTEconomics AssignmentName of the StudentName of the UniversityCourse ID
ECONOMICS ASSIGNMENT1Table of ContentsAnswer 1..........................................................................................................................................2Answer 2..........................................................................................................................................2Answer a......................................................................................................................................2Answer b......................................................................................................................................3Answer c......................................................................................................................................4Answer d......................................................................................................................................4Answer e......................................................................................................................................5Answer 3..........................................................................................................................................6Answer a......................................................................................................................................6Answer b......................................................................................................................................6Answer c......................................................................................................................................7Answer 4..........................................................................................................................................8Answer a......................................................................................................................................8Answer b......................................................................................................................................9Answer c....................................................................................................................................10Answer 5........................................................................................................................................10Answer a....................................................................................................................................10Answer b....................................................................................................................................11Answer c....................................................................................................................................11Answer d....................................................................................................................................11Answer 6........................................................................................................................................12Answer a....................................................................................................................................12Answer b....................................................................................................................................13References list................................................................................................................................15
ECONOMICS ASSIGNMENT2Answer 1The shareholders of BP represent a perfectly competitive market structure as thecharacteristics of the market resembles that of a competitive one. Like perfect competition, thereare various buyers and sellers in the share market. The share market has homogeneity of goods.Neither the buyers nor the sellers can influence price of the shares (Fine 2016). The sellers areprice takers like competitive firms. All the participants have perfect information knowing theirown choice and have information about the product purchased. Answer 2Answer aThe market demand and market supply equation is given as Demand:P=1000−2QSupply:P=100+QMarket equilibrium is obtained where market demand equals market supply,Demand=Supply¿,1000−2Q=100+Q¿,3Q=900¿,Q=300Equilibrium price,P=100+Q¿100+300
ECONOMICS ASSIGNMENT3¿400Equilibrium price = 400Equilibrium quantity = 300Answer bThe marginal cost function of Victor’s egg firm is given asMC=2q+1Profit maximization condition for firm under perfect competition is Price=Marginalcost¿,400=2q+1¿,399=2qOr,q=199.5Profit maximization level of production is therefore 199.5TotalRevenue=Price(P)×Quantity(q)¿400×199.5¿79800Given the cost function the total cost can be obtained asTotalcost=100+q2+q¿100+¿
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