Introduction to resource economics questions.

Concisely define the following concepts

1. Economies of scale
2. Money velocity
3. Production possibility frontiers
4. Price discrimination
5. Cross price elasticity of demand

1. Concisely outline ten(10) principles of economics
2. Suppose that an increase in the price of milk from $2.85 to $3.15 a gallon raises the amount that dairy farmers produce from 9,00 to 11,000 gallons per month. Compute the price elasticity of supply.

A firm that makes pencil plans on producing 500 pencils a week. Based on their production  costs throughout the years, they figure that it will cost them $1.00 to make each pencil. There will also be a cost for running the equipment for a week that they figure to be $350 for the whole week, regardless of how many pencils they make. The same pencil factory decides to sell its 500 pencil for $1.75 each.

1. Calculate the total cost of pencil production per week
2. What would the total revenue be?
3. How much profit does the company make?
4. Determine the amount of output that would lead to the company`s profits breaking even(i.e where the company neither make profit nor loss)

Monopoly is a situation where there is only one seller of the commodity. Concisely explain at least five(5) sources or bases of monopoly

Minimum wage determination can cause unemployment. Explain.

What do you understand by the term “Phillips Curve” as applied to inflation and unemployment?

Concisely describe the key uses of money.

A single definition of “economics” is unlikely to cover all its aspects. Briefly explain.

Concisely define the following concepts

1. Economies of scale
2. Money velocity
3. Production possibility frontiers
4. Price discrimination
5. Cross price elasticity of demand

Given the following demand equation:

Q=100-20P+P²

Where Q is the quality demanded, and P is the price.

1. calculate the price elasticity of demand when P=7 and Q=9
2. If you are selling such a product, what could be your price strategy to increase revenue?