Economics Past Questions and Answers

Gold, diamond, iron ore and limestone are collectively referred to as

Points outside a production possibility curve indicate

The International Bank for Reconstruction and Development (IBRD) is important to developing nations because it

Which of the following can be used to calculate the price elasticity of demand?

The output and cost of production of rice (in bags) are presented in the table below. Use the information in the table to answer the questions that follow. <br/> <br/><table class='tbn'><tbody><tr><td> Output of rice (in bags) </td><td> 0 </td><td> 1 </td><td> 2 </td><td> 3 </td><td> 4 </td></tr><tr><td> Total Variables Coat (TVC) $ </td><td> 0 </td><td> 5 </td><td> 7 </td><td> 10 </td><td> 20 </td></tr><tr><td> Total Cost (TC) $ </td><td> 7 </td><td> 12 </td><td> 14 </td><td> 17 </td><td> 27 </td></tr></tbody></table><br/><br/><br/>(a) Calculate the<br/>(i) Average Fixed Cost (AFC) at output levels 0,2 and 4<br/>(ii) Marginal Cost (MC) at all levels of output<br/>(b) If the price of a bag of rice were $10,<br/>(i) calculate the profit/loss at all levels of output.<br/>(ii) at what output level(s) is the maximum profit made?<br/>(c) Draw the marginal cost curve (the use of graph sheet is essential).