economics paper31 discussion

[JamesSmith]

hey, calm down its not that difficult..

see quota is the maximum level what CAN be produced not what HAS been produced. so when firms sell quota they are selling the quantity authorizaion of what a firm can produce in future and not the physical commodity.

 

[djdead1]

ahan.....so this firm earns anyways because he has allowed the other firm to produce more....so he earns when he sells the quota

and the other firm earns more by being able to produce and thats how the profits rise. right?


so the increase in profits is bcoz of that extra earning that comes because of selling quotas, correct?

 

[JamesSmith]

no profits rise because of selling more quantity and a firm will only buy more if it is productively efficient.
The earnings from the quota selling is one time.

 

[djdead1]

no profits rise because of selling more quantity and a firm will only buy more if it is productively efficient.
The earnings from the quota selling is one time.

but the quantity traded is the same right? sinc production is the same? no matter how many quotas u exchange at the end of the day ure gona be selling the same amount the consumers,


so at the end theyre increasing total profits because theyre earning by selling quotas, no/?

 

[JamesSmith]

i guess maybe.. but my logic is different. it is that a firm would buy quota and would be more in position to have EOS and produce more productively efficiently. the AC curve shifts down and thus more profit made by the firm (the selling firm)

 

[djdead1]

i guess maybe.. but my logic is different. it is that a firm would buy quota and would be more in position to have EOS and produce more productively efficiently. the AC curve shifts down and thus more profit made by the firm (the selling firm)

hmmm that approach is....an approach too lol coz i immediately perceived it to be that way...this didnt cross my mind...but ure nt wrong eider thnkss a million

 

[JamesSmith]

there is a button for thanks as well..

 

[djdead1]

 

[JamesSmith]

http://www.xtremepapers.me/CIE/Internat ... 6_qp_3.pdf

please explain q.4!! ASAP

 

[Xenon]

work out the TR(no of workers*APP), then MR (differences between TR) and finally MRP of labour. Since it is perfect competition, firms employ up to wage = MRP

 

[mega5984]

hey can any one help me ,, unable to understand this mcq ,, al though its from an easy topic but unable calculate ,, how we have to do this mcq , plz help .........!! MAY/JUNE 2002,, QUESTION 3 ,, PAPER 3 ....!! PLz URGENT .........../!!!!

 

[djdead1]

do u kno the answe? my answer is A

 

[JamesSmith]

is answer A?

 

[djdead1]

lol

 

[JamesSmith]

haha... yea i guess the answer is A then.. 171 was the maximum utility the consumer can get amongst all the combinations given!

 

[djdead1]

hey can any one help me ,, unable to understand this mcq ,, al though its from an easy topic but unable calculate ,, how we have to do this mcq , plz help .........!! MAY/JUNE 2002,, QUESTION 3 ,, PAPER 3 ....!! PLz URGENT .........../!!!!

divide all the MUs by the respective prices of the prodycts X and Y

compare them. Y keeps giving a higher ration uptil 6th unit. after that Y and X have same ratios. so u choose one from Y and one from X. and so on

when u have chosen 7 Ys and 2 Xs. ur budget runs out ie 32 buks r up. thats ur answer

 

[JamesSmith]

guess what.. i calculated the total utilities of all the combinations.. the highest I regarded as the answer!

 

[djdead1]

guess what.. i calculated the total utilities of all the combinations.. the highest I regarded as the answer!

lol dats an approach too....u always have alternatives, huh?

 

[djdead1]

guess what.. i calculated the total utilities of all the combinations.. the highest I regarded as the answer!

lol dats an approach too....u always have alternatives, huh?

tho i didnt get wht u meant ROFL

 

[mega5984]

dude ,, THANKS ALOTIEeeeeee ,,,,,, you saved my life plz help me in business also ,, i had posted there plz ,, i am in a deep tension ritee now...