Description
Part 1
Answers the following questions individually:
a) What does the market demand curve show?
The demand for a specific good by a specific person
The demand for a specific good in a given market
The demand for all goods in a given market
The total demand for all goods across an economy
b) Choco Company Ltd sells chocolates and has noted a decrease in the demand for chocolate across the board due to a dissatisfaction in the taste. How should the company react?
The company needs to close down business within a reasonable amount of time.
The company needs to think about manufacturing other products.
The company needs to figure out how to lure those customers back.
The company needs to readjust to make the chocolates more palatable.
c) Which would have the biggest effect on a market demand curve for a whole city?
The whole city limiting their use of the good by 15%.
Someone cutting their consumption by 50%.
A group of 100 people stop using the good.
The supply of a good by a new manufacturer
Part 2
QuestionsQuestion1. Your company is going to produce 1,200 spoons. It costs you $2.00 to make each spoon. What is your total variable cost to make all the spoons
Question 2. Your company is going to begin making 200 spoons a day instead of 100. Your total costs were $200, and now they are going to rise to $240. What is your marginal cost?
Question 3. You need to make 1,000 spoons. Each spoon has a variable cost of $1. Your fixed cost is $4,000. What is your average total cost for the spoons?
Question4. Let us suppose that in Country X, we have the option of producing 50 tons of wheat or 25 tons of meat. This is our cost-benefit analysis for creating these two items. Calculate the opportunity cost and interpret the results.
