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Economics, Accounting & Business: Post your doubts here!

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Ques no. 4.
Can anyone explain me how are these questions solved?? After i go through the MS i get it. But then i come across similar questions I don't know :/
 

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hey even i have doubt in this but can u explain me more clearly....pls it would surely help me pls.....
For lamb, suppose qty is x. Then qty for beef= 2x
Similarly, as the question says the opportunity of producing a kilo of beef is 3 kilos of lamb, we assume if price for lamb is 1, then price of beef has to be 3.
Now, total expenditure for the production of lamb will be : P x Q which is 1x
And the T.E for beef will be 6x.
Hence, if the farmer focuses on lamb production he'll be maximizing revenue.

Hope it helps. :)
 
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For lamb, suppose qty is x. Then qty for beef= 2x
Similarly, as the question says the opportunity of producing a kilo of beef is 3 kilos of lamb, we assume if price for lamb is 1, then price of beef has to be 3.
Now, total expenditure for the production of lamb will be : P x Q which is 1x
And the T.E for beef will be 6x.
Hence, if the farmer focuses on lamb production he'll be maximizing revenue.

Hope it helps. :)


Ohhhh okok thanks a lot....I understood....
I have another doubt too pls help me in that also na....
i have doubt in 24th question....how is it option B???and hoe to solve this kind of question....
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_w11_qp_12.pdf
 
Messages
96
Reaction score
204
Points
43
Messages
420
Reaction score
1,426
Points
153
Ohhhh okok thanks a lot....I understood....
I have another doubt too pls help me in that also na....
i have doubt in 24th question....how is it option B???and hoe to solve this kind of question....
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w11_qp_12.pdf
Index in the base year is 100.
The ratio given is the weight assigned.
Construct a table where weight is 2,1,4,3 and new index is 98, 104,110,100.
As it says price of food falls by 2%, so new index will be 98 for food and accordingly the rest.
Now calculate W x I for the four of them, calculate its sum (1040) and divide by sum of weight (10).
You get 104, and so the increase in the index will be (104-100 )/100 * 100% which is basically subtracting base year index i.e 100 from new one i.e 104. So the answer will be 4%.
 
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96
Reaction score
204
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43
Index in the base year is 100.
The ratio given is the weight assigned.
Construct a table where weight is 2,1,4,3 and new index is 98, 104,110,100.
As it says price of food falls by 2%, so new index will be 98 for food and accordingly the rest.
Now calculate W x I for the four of them, calculate its sum (1040) and divide by sum of weight (10).
You get 104, and so the increase in the index will be (104-100 )/100 * 100% which is basically subtracting base year index i.e 100 from new one i.e 104. So the answer will be 4%.


Thanks a lot
 
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