Exam (elaborations)
Economics 1 (HECO130-1) Essay Assignment answers
- Course
- Economics 1 (HECO1301)
- Institution
- Boston City Campus And Business College (boston)
Economics 1 (HECO130-1) Essay Assignment answers
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Question 11.1. Price is the amount of money that a buyer would pay for a good or service. It is the
monetary value that is assigned to a good or service in a transaction (Besanko and
Braeutigam, 2020). In a competitive market, prices represent the equilibrium
between what producers are willing to accept and what consumers are willing to
pay. Other factors that influence prices include supply and demand dynamics,
production costs, and perceived value.
Cost, on the other hand, describes the expenses associated with producing a good
or providing a service. It includes all inputs and resources needed in the production
process, such as labor, raw materials, and other indirect costs. Depending on
whether they vary with the volume of production, costs can be divided into three
categories: variable costs (such raw materials, utilities), and fixed costs (like rent
and salaries) ADDIN ZOTERO_ITEM CSL_CITATION
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2021)","plainCitation":"(Greenlaw et al., 2021)","noteIndex":0},"citationItems":
[{"id":1095,"uris":["http://zotero.org/users/4213610/items/XUAIQUDQ"],"itemData":
{"id":1095,"type":"article-journal","source":"Google Scholar","title":"Principles of
microeconomics","URL":"https://touroscholar.touro.edu/oto/19/","author":
[{"family":"Greenlaw","given":"Steven"},{"family":"Aldrich","given":"Clark"},
{"family":"Pakula","given":"Jennifer"},{"family":"Dolar","given":"Veronika"},
{"family":"Fusillo","given":"Michael"},{"family":"Haci","given":"Sophie"},
{"family":"Kilpatrick","given":"Shawn"},
{"family":"Walker","given":"Melissa"}],"accessed":{"date-parts":
[["2024",5,8]]},"issued":{"date-parts":[["2021"]]}}}],"schema":"https://github.com/
citation-style-language/schema/raw/master/csl-citation.json"} (Greenlaw et al.,
2021). Businesses must be aware of expenses in order to determine appropriate
prices because prices must be profitable and cover expenditures.
, In summary, while price represents what consumers pay for a product or service,
cost represents the expenses incurred by the producer in the production or delivery
process. Prices are influenced by market forces and consumer behavior, while
costs are determined by the production process and resource inputs.
1.2.
Number of Cokes Number of Lays Combination
2 6 A
1 8 B
4 2 C
3 4 D
0 10 E
5 0 F
1.3. .
Lays Chips eaten Marginal Utility Total Utility Weighted
marginal utility
0 0 0 0
1 40 40 8
2 20 60 4
3 5 65 1
1.4. One packet of lays chips
Question 2
2.1. Total Cost (TC) Curve: The TC curve show the total cost incurred by a firm to
produce different levels of output. The total cost (TC) = Total Fixed Cost (TFC) +
Total Variable Cost (TVC). The TC curve slopes upward, because total costs
increase as output increases. This is because producing more units demands more
resources, which is reflected in the increase in costs. The slope of the TC curve
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