it can from its scarce resources. * Equity: The benefits of those resources are distributed fairly among the members of society. * Models: Circular flow diagram and PPF * The circular-flow diagram shows how dollars flow through markets among households and firms in an economy * Firms (Produce and sell goods and services) * Households (Buy and consume goods and services.) * The production possibilities frontier (PPF) is a graph showing the combinations
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microeconomic concepts and theories in order to equip them with the basic conceptual abilities and skills in economic problem solving. The theories will include the basic economic problem, supply and demand analysis, consumer behaviour, market structure, production and cost and market failure. LEARNING OBJECTIVES: The aims of this course are to enable students to: Apply basic theoretical microeconomic models as a framework for understanding the real world problems. Establish the ability to communicate
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may be homogeneous or differentiated in the ________ market structure. perfectly competitive monopolistic monopolistically competitive oligopolistic 2. The right answer to the debate regarding the welfare effects of advertising is that advertising always leads to concentration in an industry. advertising always leads to positive economic profits in an industry. advertising always improves the functioning of the market. There is no right answer. 3. Assume that
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aluminum production industry (“the industry”) in 1994 can be described as perfectly competitive. The industry is characterized by a large number of competing firms – the largest of which has only 4.1% of total industry capacity; homogeneous, commodity-type products and low-cost entry and exit into and out of the industry (assuming capital is available where returns are greater than cost of entry). Within the industry, market prices are established via a commodities exchange (the London Metal Exchange
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Labour costs = External The cost of labour, as a percentage of the other costs within a business, will depend on whether the business is capital or labour intensive, as well as the extent to which the skills needed by that organisation are available and accessible. Skills requirements = Internal Assessing the skills of the current workforce is an essential part of human resource planning as it enables the business to build up a profile of the training, experience and qualifications that employees
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Market structures like Monopoly, Duopoly, and Oligopoly and Monopolistic competition in any industry in Australia. Market structure reflects all the most important aspects of the market - the number of firms in the industry, the type of product produced, the possibility to enter and exit of firms, number of customers, the ability of a single firm to influence the market price. The lower the firm's ability to influence the market, the more competitive the industry is considered. In the limiting
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classify energy and water as part of which factor of production? A) land B) labor C) capital D) entrepreneurship E) land if undeveloped and capital if developed 4) A circular flow model shows the interrelationship between the ________ market and the ________ markets. A) household; goods B) household; factor C) business; household D) expenditure; income E) goods; factor The economic problem 1) The production possibilities frontier illustrates the A) maximum combinations of goods and services
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allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold. A socialist economic system is based on some form of social ownership of the means of production, which may mean autonomous cooperatives or direct public ownership; wherein production is carried out directly for use. Where markets are utilized for allocating inputs and capital goods among economic units, the designation market socialism is used. When planning is utilized, the economic
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Market structure Name Course Title Date of Submission University Name Tutor Name Economic theory tells us that market structures can be of 4 main types depending on parameters like no of buyers and sellers, government regulation, ease of entry and exit, and the extent of product differentiation as well as interdependence among firms. In this case,, restaurant business is part of a market structure that is neither an oligopoly nor perfectly competitive. It is best
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Department of Economics Spring Semester 2010 University of Pacific ECONOMICS 53 Problem Set 6 Due before lecture on April 1 Part 1: Multiple Choice (15 Questions, 1 Point Each) 1. If a monopolist's marginal revenue is $35 a unit and its marginal cost is $25, then A) to maximize profit the firm should decrease output. B) to maximize profit the firm should continue to produce the output it is producing. C) to maximize profit the
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