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A2 Economics Paper 3 (MCQ) Preparation Thread

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Zainab Bukhari

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Ratokursi said:
Ask your questions! I'll start off:



Please explain Q.7 and 15. Thank you. :D
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Q7. it is B becuz when yu double the inputs, capital from 2 units to 4 and labour from 6 units to 12, the inputs double aswell i.e. 100 to 200 ... this means that the ratio b/w inputs and outputs remain the same, thus constant returns to scale .
Q15. i dnt knw how to really explain this one :p but this is the area which represents the loss that is kinda not compensated . in other words, at this level of demand (OQ2), what they cud hv produced and what they r actually producing (or supplying) is the cost to the economy and area A represents that .
 
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Zainab Bukhari

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Zainab Bukhari said:
Q7. it is B becuz when yu double the inputs, capital from 2 units to 4 and labour from 6 units to 12, the inputs double aswell i.e. 100 to 200 ... this means that the ratio b/w inputs and outputs remain the same, thus constant returns to scale .
Q15. i dnt knw how to really explain this one :p but this is the area which represents the loss that is kinda not compensated . in other words, at this level of demand (OQ2), what they cud hv produced and what they r actually producing (or supplying) is the cost to the economy and area A represents that .
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oh i meant the outputs* double aswell, 100 to 200 units .
 
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Ratokursi

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Zainab Bukhari said:
Q7. it is B becuz when yu double the inputs, capital from 2 units to 4 and labour from 6 units to 12, the inputs double aswell i.e. 100 to 200 ... this means that the ratio b/w inputs and outputs remain the same, thus constant returns to scale .
Q15. i dnt knw how to really explain this one :p but this is the area which represents the loss that is kinda not compensated . in other words, at this level of demand (OQ2), what they cud hv produced and what they r actually producing (or supplying) is the cost to the economy and area A represents that .
Click to expand...
Thank you! I do not understand 15 well, but it seems like something I'll have to understand only partly :p
 
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Ratokursi

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sharfa riyaz

sharfa riyaz

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hey thankz! but i did some math after posting it here! n did understand it! thankz anyways!
 
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