4- es/26076/quizzes/61768/take At Allocate+ Student # Canvas UTS E4 Homepage [UIS Lis | My Student Admin. ] Chat GPT Youtube & Facebook (THE1 0 words > 2 1 10 pts D Question 6 Refer to the following matrix below. Two non-collusive aircraft manufacturers, Boeing and Airbus, are playing a game where they have to choose whether to cut or raise prices for the aircraft they produce. Their profit outcomes (in $B) are summarised below. Airbus Cut price Raise price Cut price 50. 50 125. 45 Boeing Raise price 45, 125 95, 95 Questions 1. What is each player's dominant strategy? Explain your reasoning. [2 marks] 2. Is there a Nash equilibrium? If so, what is it? [2 marks) 3. Is this an example of a prisoner's dilemma game? (2 marks) 4. State two types of cooperative oligopoly. [2 marks] 5. State four types of non-cooperative oligopoly. [2 marks] Clearly label each of your answers in the text box below, Edit View Insert Format Tools Table 12pt Paragraph B / A 2 TY msiAutumn 2023 (Oty campus) UTS Home 10 pts O Subject Outline D Question 4 Account Modules Announcements Cherries farmers have a very bad year, the production of cherries has decreased from 150 million kg Dashboard to 100 million kg. The price of cherries increased from $8 per kg to $10 per kg. Assignments Courses Quizzes On the other hand, blueberries production increased from 60 million kg to 70 million kg. People Groups Marks Questions Discussions endar 1. Calculate the price elasticity of demand for cherries? [2 marks] Search 2. Are cherries elastic, unit elastic, or inelastic? Explain. What would be the shape of the demand Reading List curve of cherries? [2 marks] OX 3. Would you expect the income (total revenue) for cherries farmers to rise or fall? Explain. [2 Zoom marks] 4. Calculate the cross-elasticity between cherries and blueberries. [2 marks] Media Gallery 5. Are cherries and blueberries substitute or complement? Explain. [2 marks] Clearly label each of your answers in the text box below. Edit View Insert Format Tools Table 12pt v Paragraph BIYAO Subject Outline Account Modules Cherry is a differentiated product with many sellers in the market. The cherry farmers have had a very bad year due to floods. At the same time, increasing numbers of people look forward to having Announcements cherries in the summer season at Christmas time. Dashboard Assignments Courses Quizzes Questions People 1. According to the above information, what type of market structure is the cherry production firms Groups Marks in the country? Discuss the characteristics of this type of market structure. [2 marks] 2. Based on your answer to the previous question, if the current cherry market generates Discussions economics profit in the short run, discuss how the cherry market and the representative firm Calendar Search would adjust back to the long-run equilibrium. [2 marks] 3. What is the factor(s) affecting the demand for cherry? How is this going to affect the demand Reading List Inbox curve? [2 marks] 4. What is the factor(s) affecting the supply of cherry? How is this going to affect the supply curve? Zoom [2 marks] History Media Gallery 5. What will happen to the ultimate change in the equilibrium price (Pe) and the quantity (Qe) of cherry in the country after taking all these factors into account. [2 marks] Media ?) Clearly label each of your answers in the text box below. elp Edit View Insert Format Tools Table 12pt Paragraph B I U A QV Ty :O Subject Outline Account Modules Cherry is a differentiated product with many sellers in the market. The cherry farmers have had a very bad year due to floods. At the same time, increasing numbers of people look forward to having Announcements cherries in the summer season at Christmas time. Dashboard Assignments Courses Quizzes Questions People 1. According to the above information, what type of market structure is the cherry production firms Groups Marks in the country? Discuss the characteristics of this type of market structure. [2 marks] 2. Based on your answer to the previous question, if the current cherry market generates Discussions economics profit in the short run, discuss how the cherry market and the representative firm Calendar Search would adjust back to the long-run equilibrium. [2 marks] 3. What is the factor(s) affecting the demand for cherry? How is this going to affect the demand Reading List Inbox curve? [2 marks] 4. What is the factor(s) affecting the supply of cherry? How is this going to affect the supply curve? Zoom [2 marks] History Media Gallery 5. What will happen to the ultimate change in the equilibrium price (Pe) and the quantity (Qe) of cherry in the country after taking all these factors into account. [2 marks] Media ?) Clearly label each of your answers in the text box below. elp Edit View Insert Format Tools Table 12pt Paragraph B I U A QV Ty :es/26076/quizzes/61768/take At Allocate . Student Canvas UTS [ Homepage JUISU.. @ My Student Admin Chat GPT Youtube @ Facebook 9- D Question 5 10 pts Use the following information on a hypothetical short-run production function: The price of labour is $40 per day. Twenty units of capital are used each day, regardless of output level. The price of capital is $80 per unit. Units of Units of MP AP Labour/Day Output/Day TFC TVC TC AFC AVC ATC MC 1 300 2 330 3 390 4 430 5 450 You can fill the above table and use it in answering the following questions. Questions 1. Calculate the marginal product (MP) and average product (AP) of each unit of labour input. [2 marks] 2. Calculate total fixed cost (TFC), total variable cost (TVC), and total cost (TC) at each output level. [2 marks] 3. Calculate average fixed cost (AFC), average variable cost (AVC), and average total cost (ATC) at each output level. [2 marks] 4. Calculate marginal costs (MC) at each output level. The marginal cost (MC) intersects with the average total cost (ATC) at which point? The marginal cost (MC) intersects with the average variable cost (AVC) at which point? [2 marks] 5. State where diminishing marginal returns sets in. Justify your answer. [2 marks] asises/26076/quizzes/61768/take Chat GPT YouTube f Fa A* Allocate+ Student Canvas UTS $ Homepage | UTS Li... My Student Admin... 10 p Question 1 A simple Keynesian economy is described by the following set of equations: Consumption = 600 + 0.80Y Investment = 400 + 0.10Y Government Spending = 900 Exports = 300 Imports = 200 + 0.15Y Questions 1. What is the autonomous consumption and induced consumption, explain the difference. [2 marks] 2. Calculate the multiplier in this economy. Explain the meaning of the multiplier effect. [2 marks] 3. Find the equilibrium output in this economy. [2 marks] 4. Government decides to increase its expenditure by AG=$100. What would be the resulting change in output? [2 marks] 5. Explain the effect on aggregate expenditure (AE) curve when the government increases its expenditure by AG=$100. [2 marks] Clearly label each of your answers in the text box below. Edit View Insert Format Tools Table 12pt Paragraph BIUAZT msi