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ECN490-Assignment-2summer22-23.docx
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Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University |
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المملكة العربية السعودية وزارة التعليم الجامعة السعودية الإلكترونية |
College of Administrative and Financial Sciences
Assignment -2
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Course Name: |
Student’s Name: |
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Student’s ID Number: |
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Semester: |
CRN: |
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Academic Year: |
For Instructor’s Use only
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Instructors Name: Dr. Alam Ahmad |
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Students’ Grade: / |
Level of Marks: High/Middle/Low |
Instructions:
· This assignment is an individual assignment. Students are encouraged to use their own words.
· Students must follow Saudi Electronic University academic writing standards and
APA style guidelines.
· Support your submission with course material concepts, principles, and theories from the textbook, along with
at least two scholarly, peer-reviewed journal articles.
· A mark of
zero is awarded for any submission that includes copying from other resources without proper referencing it.
· It is strongly encouraged that the student submits his/her assignment into the Safe Assignment Originality Check before uploading it on the Blackboard.
· Read the assignment guidelines earlier sent to your email IDs.
An Overview
of
Assignment submission time & grades:
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Type of Assignment |
Posting date |
Due date |
Marks |
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Critical Thinking |
20/07/2023 |
02/08/2023 |
30 |
(CRITICAL THINKING-2 )
Q1. Suppose you are employed as an economist by a firm that operates in a perfectly competitive market and produces Jackets. The firm is operating in the short run. The price of the jacket is $9, the wage for each worker is $24, and each jacket requires $1 worth of material. The following table shows the relationship between the number of workers and the output of Jackets.
[7.5 Marks]
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Workers |
10 |
11 |
12 |
13 |
14 |
15 |
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Output |
5 |
29 |
41 |
47 |
50 |
52 |
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Labor cost |
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Material cost |
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Fixed cost |
$2 |
$2 |
$2 |
$2 |
$2 |
$2 |
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Total cost |
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Marginal cost |
– |
2 |
3 |
5 |
9 |
13 |
a. Calculate the missing values in the table given.
b. Use the concept of marginal principle and advice the manufacturer about the number of jackets he should produce to maximize his profit.
Q2. What is the price elasticity of demand? How is it different from Income elasticity of demand? Take an example and explain how the concept of elasticity of demand and supply helps the market stakeholders.
[7.5 Marks]
Q3: Explain the following terms with suitable examples.
[7.5 Marks]
a) Constant returns to scale
b) Economies of Scale
c) Minimum efficient scale
d) Diseconomies scale
Q4:
a) Can Indivisible input factors affect the production cost? Take an example and discuss
[4Marks]
b) How does marginal cost affect the average cost? Present the relation of marginal cost and average cost with the help of a graph.
[3.5 Marks]
Answers :-