Learning Goal: I’m working on a micro economics question and need an explanation and answer to help me learn.
Instructions – PLEASE READ THEM CAREFULLY
- This assignment is an individual assignment.
- Due date for Assignment 2 is 16/04/2022
- The Assignment must be submitted only in WORD format via allocated folder.
- Assignments submitted through email will not be accepted.
- Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
- Students must mention question number clearly in their answer.
- Late submission will NOT be accepted.
- Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
- All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
- Consider the long-run production of shirts. The cost of the indivisible inputs used in the production of shirts is $400 per day. To produce one shirt per day, the firm must also spend a total of $55 on other inputs-labour, materials, and other capital. For each additional shirts, the firm incurs the same additional cost of $55.
- Explain the relationship between short run ATC and MC and why ATC is U-shaped in short run? (2 Marks)
- Explain equilibrium of the firm under perfectly competitive market by choosing output level at which
- Define the price elasticity of demand and explain its role to predict changes in quantity and total revenue (2 Marks).
- Compute the average cost for 50 shirts, 100 shirts, 130 shirts, and 200 shirts. (1.5 Marks)
- Draw the long-run average cost curve for 50,100,130 and 200 shirts per day. (1.5 Marks)
- P=MC=MR and Firm is making zero economic profit (1 Mark)
- P=MC=MR and Firm is making a loss (1 Mark)
- Explain shut down rule with the help of graph (1 Mark)
Order an Essay Now & Get These Features For Free: