Fnica Arud Ourpur Dtrenmirueriorv
In the short run, flrms in the perfect comptitive indusfy
may enjoy nonnal, subnormal or supernorrnal profits.
However, thoso firms which previously enjoyed supernormal
Analyse and comrnent upon th
s certain is that the total expenditure will aldue to PED and a positive yED. However
: r : i=i on quantity is uncertain. The pED causes the
:-: -:. to fall whereas YED causes it to rise. If the
.:-: :s stronger than the lafter, there
will be a ne
irrespective of its value being positive or nega-
New cars can be assumed to be normal
supply ofused-car increases. This increase irr supply, with a speculative fall in demand may cause
price of used cars to fall. Such buyas save money
when buying thei
Do you agree or disagree: Technology designed to make peoples lives simpler but make peoples
lives more complicated.
Nowadays, we are living in a world where the technology advances strongly and quickly. It is true
that new technology bring us more conven
A high school has decided that all students must take a class in which they learn a practical skill.
School administrators are trying to decide whether to hold a class in cooking, managing personal
finances or auto repair. Which do you think the school sh
I am really a fan of Zayn Malik (the ex-member of One Direction). I went to Melbourne to watch
his concert. And I also follow him on twitter, and some of friends on the Internet who also like
him. When I talked with them, they told me that Zayn and her fi
Air fares on major airlines from South Africa to london
and Europe will cost more during peak travelling seasons.
The fares are to be fixed by a twenty-strong group of air-
of bus rides
In this case, a finn can charge Mr. B a higher price for
the same quantity of a product because B's PED is
The second condition for PD is no possibility of resale.
resale of the product or service is possible, then a
customer can buy at the low
Sponsored content is that the company gets money from posting advertisement from another
company who gave the money. Journalism has the reasonability to share true events and
information to the public. So when journalism also contains sponsored content, i
Do you agree or disagree with the following statement? Students could receive a better, more
efficient education if they spend 11 months a year studying.
NO: no energy
YES: time to regulate/concentrate
Nowadays, students in the world normally spend 10 mon
There is a tale that about 2,200 years ago, Greeks fight against the Roman navy by a weapon
called a burning mirror. The reading listed three reasons to indicate that the burning mirror was
not existed. However, the listening argues that none of the reaso
a big and well-known company, even if price is higher'
because of the guarantees and better after-sales services. Modem electronics have made consumers helpless
whenever products fail. There is nothing for him to
repair himself. Therefore it
topic9 Pnicr Arud Ourpur Dsrnminurioru .
tiation, perfect louwledge, barriers to enlry, types of competition and profits. For part (b), describe thevariousfactors
that favour an oligopoly for most markets.
(a) A market for a particular g
Pnice Awd Ourpur Drrrnmirvnriox
than MC, at thc level of output. Diagram I shows a
M.C. (monopolistic competirive) fimr and diagram 2
shows a monopoly.
(a) What distinguishes
developing couniries from devel-
1. Describe a characteristic of a good teacher.
2. What kind of qualities should a good leader possess?
3. Describe a quality that a team member should have.
4. While choosing a friend, which of the following characteristics do you care about most:
Some carved stone balls are found in Scotland. They interested archaeologists to investigate their
purpose and meaning. The reading listed three theories about that and discussed with reasons.
However, the listening argues that none of the reasons given b
The reading and the listening both discuss what might have caused the
odd sounds 'quackers' found by Russian submarines. The reading says
that the strange noises were from ocra whales, or giant squid or some
military technology. However, the listening dis
petition firrn's lowest AC' Thus the goods which
are of a higher
in perfect cornpetition.
(a) Explain why, with no governrnent regulation, the
Pnoducriov Awd Cosr
The nature of a business or the size of the market are
other factors that cause companies to remain srnall.
For examples firms who engage in services or tertiary
Refer to the diagram below:
industries tend to remain sm
the above information, comment
on the view
that companies aim to maximise profits.
The question requires the student
to know how cost
considerations have to be taken
into u"ount by a firm
within the &amework of a profrt_maximisin
Casr , utcpo
Fixed costs (FC) is costs that do not vary with the
A finn will produce at the lowest point of its AC curve
to optimise the use of resources. The firm
Ievel of output. They are indirect costs or start-up costs,
The FC c
The monopoly makes huge super normal profits (SNP)
by creating a shortage (P > MC)' In this case, the SNP
unit. This comes to $20. The diflerence of $9, which
ho docs not pay is CS.
is given bY the shaded areas.
R.efer to the diagram below:
Big buses, can also be used in the city, for '.he above
The foreign inveshnent also leads to positive external
effects. Indirectly the local economy experiences an
injection of money into its circular flow' This increases demand for other locally produc
t a p, d e
p e e* d w qi ,.e .
a) Analyse with examples the nature and likely benefits
of econornies of scaleto large manufacturing companies.
In the light of these benefits why do governments find
F*oCucri,tp Antd cfw_'osr t
rising unit costs.
In the SR, a hrm should make optimal use of its f,rxedfactor by increasing ouput. This causes tJre AC to
keep falling. Take the case of a private tutor who rents
a room to conduct tuition c
noic9 Pnicr Aud
Ourpur Dnmmisnriot - utcno
(a) Both are imperfect
market structures, but monopolistic
competition is usually refened to as an imperfectly
competitive market and oltgopoly is an imperfectly
non-competitive market. This is becaus
llcrpic? PnoducrioN Axd Cosr , *ttcno
the LRS, it operates in the long-run where all factor
inputs are variable. These constrains or advantag,es are
the root causes for the laws.
(a) Economies of scale aru cost'saving advantages
In the long run, consumers gain with better and cheaper
products. The entrepreneur gains with more profits.
(a) Use the concept
of elasticity to distinguish between a
normal good and an inferior good.
There are many reaso