Questions from General Economics

Q: Up to roughly how long is the short run in the following

Up to roughly how long is the short run in the following cases? (a) A karaoke firm; (b) Electricity power generation; (c) A small grocery retailing business; (d) ‘Superstore Hypermarkets plc’. In each...

Q: The following are some costs incurred by a shoe manufacturer. Decide

The following are some costs incurred by a shoe manufacturer. Decide whether each one is a fixed cost or a variable cost or has some element of both. (a) The cost of leather; (b) The fee paid to an ad...

Q: Why does the marginal cost curve pass through the bottom of the

Why does the marginal cost curve pass through the bottom of the average cost curve and the average variable cost curve?

Q: Does the marginal value of a variable (such as cost,

Does the marginal value of a variable (such as cost, revenue or profit) determine the average value of the variable, or does the average value of the variable determine the marginal value? Explain you...

Q: What economies of scale is a large department store likely to experience

What economies of scale is a large department store likely to experience?

Q: What is the Standard Industrial Classification (SIC)? In what ways

What is the Standard Industrial Classification (SIC)? In what ways might such a classification system be useful? Can you think of any limitations or problems such a system might have over time?

Q: Why are many firms likely to experience economies of scale up to

Why are many firms likely to experience economies of scale up to a certain size and then diseconomies of scale after some point beyond that?

Q: Normal profits are regarded as a cost (and are included in

Normal profits are regarded as a cost (and are included in the cost curves). Explain why.

Q: What determines the size of normal profit? Will it vary with

What determines the size of normal profit? Will it vary with the general state of the economy?

Q: Think of four different products or services and estimate roughly how many

Think of four different products or services and estimate roughly how many firms there are in the market. You will need to decide whether ‘the market’ is a local one, a national one or an internationa...