Economics answers to the Synergy test
Replenishment date: 08.09.2023
Content: Economics.docx (27.82 КБ)
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Question: 1st
During the discussion of the development strategy, the board of directors of the monopolist company heard a report from the chief economist, from which it followed that a negative cross-elasticity with the market for cars with an internal combustion engine was identified. The market for these cars is constantly shrinking and this trend will continue in the future. What actions does a monopolist company need to take? Justify your answer.
Answer:
The company is a monopolist, so it can take any actions that do not contradict antitrust laws. Obviously, if the price or production volume increases, the company will increase its income.
Although the company is a monopolist, cars with internal combustion engines are substitute goods (substitutes) for the monopolist's products, since there is a negative cross elasticity. Consequently, the company needs to increase sales in order to replace the declining share of the substitute product.
A negative cross elasticity indicates that cars with internal combustion engines are complementary goods to the company's products. Consequently, the company needs to reduce sales volume, since although it is a monopolist, its sales volume is limited by the amount of demand, which will decrease.
Question: 2st
Options for production solutions are presented in the table (see table below). Using the initial data given in the table, calculate the minimum level of opportunity costs associated with the production of an additional unit of product X.
Answer:
The minimum level of opportunity costs is 1.
The minimum level of opportunity costs is 2.
The minimum level of opportunity costs is 4.
The minimum level of opportunity costs is 6.
Question: 3st
The authorities of the Kursk region and the Trans-Baikal Territory reported an increase in prices for medical masks more than tenfold amid the situation with the coronavirus from China. According to Deputy Chairman of the Government of Transbaikalia Ayagma Vanchikova, which are listed on the official portal of the regional authorities, the price of one mask increased from 1,2 to 10 rubles. At the end of January, sales of medical masks in Russia more than tripled in annual terms, reported the OFD Platform, the largest operator of fiscal data in Russia. (RBC 03.02.2020/20/XNUMX) Was it necessary for the Russian Government to intervene in the operation of the market mechanism and set a maximum price for a medical mask, for example, no more than XNUMX rubles. per piece?
Answer:
Yes, the Russian government needed to intervene in the functioning of the market mechanism. This situation is a classic example of “market failure”; government intervention would not only bring the market into balance, but also avoid (significantly reduce) the shortage of medical masks in the country.
This measure would not lead to a change in the situation. The Russian government needed to take the situation under full state control: prohibit the private sector from selling medical masks and establish state production and distribution of masks - such measures would not only fulfill the social function of the state, but also prevent (significantly reduce) the shortage of medical masks in the country.
The government might have to actively stimulate the production of medical masks, but under no circumstances should it interfere with the operation of the market mechanism, since the rapid rise in prices sharply increased the volume of supply and reduced the volume of demand for masks, thereby the market self-balanced and eliminated the shortage of masks, and further the action of the “invisible hand” led to an equally rapid decline in prices for medical masks.
Question: 4st
The activity of the enterprise in the production of goods is characterized by the following indicators: total fixed costs - 10000 rubles; average variable costs – 5 rubles; production volume – 400 pieces. Determine the size of the total costs of the enterprise.
Answer:
General size of
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Question: 1st
During the discussion of the development strategy, the board of directors of the monopolist company heard a report from the chief economist, from which it followed that a negative cross-elasticity with the market for cars with an internal combustion engine was identified. The market for these cars is constantly shrinking and this trend will continue in the future. What actions does a monopolist company need to take? Justify your answer.
Answer:
The company is a monopolist, so it can take any actions that do not contradict antitrust laws. Obviously, if the price or production volume increases, the company will increase its income.
Although the company is a monopolist, cars with internal combustion engines are substitute goods (substitutes) for the monopolist's products, since there is a negative cross elasticity. Consequently, the company needs to increase sales in order to replace the declining share of the substitute product.
A negative cross elasticity indicates that cars with internal combustion engines are complementary goods to the company's products. Consequently, the company needs to reduce sales volume, since although it is a monopolist, its sales volume is limited by the amount of demand, which will decrease.
Question: 2st
Options for production solutions are presented in the table (see table below). Using the initial data given in the table, calculate the minimum level of opportunity costs associated with the production of an additional unit of product X.
Answer:
The minimum level of opportunity costs is 1.
The minimum level of opportunity costs is 2.
The minimum level of opportunity costs is 4.
The minimum level of opportunity costs is 6.
Question: 3st
The authorities of the Kursk region and the Trans-Baikal Territory reported an increase in prices for medical masks more than tenfold amid the situation with the coronavirus from China. According to Deputy Chairman of the Government of Transbaikalia Ayagma Vanchikova, which are listed on the official portal of the regional authorities, the price of one mask increased from 1,2 to 10 rubles. At the end of January, sales of medical masks in Russia more than tripled in annual terms, reported the OFD Platform, the largest operator of fiscal data in Russia. (RBC 03.02.2020/20/XNUMX) Was it necessary for the Russian Government to intervene in the operation of the market mechanism and set a maximum price for a medical mask, for example, no more than XNUMX rubles. per piece?
Answer:
Yes, the Russian government needed to intervene in the functioning of the market mechanism. This situation is a classic example of “market failure”; government intervention would not only bring the market into balance, but also avoid (significantly reduce) the shortage of medical masks in the country.
This measure would not lead to a change in the situation. The Russian government needed to take the situation under full state control: prohibit the private sector from selling medical masks and establish state production and distribution of masks - such measures would not only fulfill the social function of the state, but also prevent (significantly reduce) the shortage of medical masks in the country.
The government might have to actively stimulate the production of medical masks, but under no circumstances should it interfere with the operation of the market mechanism, since the rapid rise in prices sharply increased the volume of supply and reduced the volume of demand for masks, thereby the market self-balanced and eliminated the shortage of masks, and further the action of the “invisible hand” led to an equally rapid decline in prices for medical masks.
Question: 4st
The activity of the enterprise in the production of goods is characterized by the following indicators: total fixed costs - 10000 rubles; average variable costs – 5 rubles; production volume – 400 pieces. Determine the size of the total costs of the enterprise.
Answer:
General size of
Additional Information
Ilya owns a house in Bulgaria worth 110 thousand euros. The current euro to ruble exchange rate is 74,22 rubles. per euro. What is the ruble value of Ilya’s house? What will be the ruble value of Ilya’s house if the euro exchange rate against the ruble increases by 1,75 rubles?Answer:
The ruble value of Ilya’s house is 8 rubles. If the euro exchange rate increases against the ruble, the new ruble cost of the house will be equal to 154 rubles.
The ruble value of Ilya’s house is 8 rubles. If the euro exchange rate increases against the ruble, the new ruble cost of the house will be equal to 164 rubles.
The ruble value of Ilya’s house is 8 rubles. If the euro exchange rate increases against the ruble, the new ruble cost of the house will be equal to 164 rubles.
Question: 6st
At the meeting of the antimonopoly authority, the results of a market study in industry X were presented; among other information, the Herfindahl-Hirschman index value of 105 was presented. How can you characterize the level of competition in this market?
Answer:
There is very low market concentration. There are many companies in the industry, each with a small market share. The antimonopoly authority should not interfere; its task is to preserve the existing market situation.
There is an average market concentration. There are quite a lot of companies operating in the industry; the market share of each of them usually does not exceed 10%. The antimonopoly authority must monitor local markets in a given industry to prevent the emergence of a local monopoly.
There is a high market concentration. There are very few companies in the industry; the market share of the two largest companies exceeds 95%. The antimonopoly authority must monitor this market very closely in order to regulate the activities of the monopoly and/or prevent price collusion.
Question: 7st
The company's board of directors discussed the need to increase the price of products sold by 1% to increase revenue and profit. During the meeting, a report was heard from the chief economist, from which it followed that the price elasticity of demand for products sold is equal to 2. What decision should the board of directors make based on the available data? Justify your answer.
Answer:
The board of directors should raise prices for products sold by 1%, as this will lead to an increase in revenue by 2%. This result is indicated by the interpretation of the elasticity coefficient value. The change in profit will depend on the effect of scale (positive or negative) currently affecting the company’s activities.
The board of directors should raise prices for products sold by 2%, since the elasticity coefficient is 2 - this will maximize the company's income. There is not enough data in the problem to estimate changes in the profit level, since this indicator depends on a number of factors.
The board of directors should not raise prices for products sold, since the value of the coefficient indicates that the company sells luxury goods. An increase in prices by 1% will lead to a decrease in sales volume by 2%, which will also negatively affect profits if the cost of production does not exceed its price.
Question: 8st
The total cost of monthly production of personal computers is estimated at 500000 rubles. Production volume – 20 pieces. The firm's fixed monthly costs are 200000 rubles. It is required to calculate the average variable costs.
Answer:
Average variable costs will be 12000 rubles.
Average variable costs will be 10000 rubles.
Average variable costs will be 8000 rubles.
Average variable costs will be 15000 rubles.
Question: 9st
A pensioner owns an apartment in Spain worth 130 thousand euros. The current exchange rate of the euro to the ruble is 80,15 rubles. per euro. What is the ruble cost of a pensioner’s apartment? What will the ruble cost of a pensioner’s apartment be equal to if the euro exchange rate falls by 10%?
Answer:
The ruble cost of a pensioner’s apartment is 9 rubles. In the event of a fall in the euro exchange rate. the new ruble price of the apartment will be 419 rubles.
Ruble cost to