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This paper is based on the following requirements - - Please read the document carefully before attempting the questions. The purpose of this coursework is to provide you with a basic understanding of fundamental concepts that lie at the heart of microeconomics. As a group, choose a small business (preferably a small firm that you aspire to start or the one that you are familiar with) and utilise the microeconomics principles that you have learned in the course in answering the below questions. Use real-life prices and costs and keep all denominations in OMR.
- Coursework questions
- For a selected number of units of a specific product/service, construct demand and supply schedules and graphs.
- Illustrate graphically and in words, how an increase and decrease in any two relevant shift-factors of demand and shift factors of supply affect equilibrium quantity and equilibrium price.
- Construct a table and graphs for the total cost, fixed cost, variable cost, marginal cost, average total cost, average fixed cost, average variable cost, total revenue, marginal revenue, average revenue and profits.
- Briefly, explain the nature of the relationship between the cost curves, revenue curves and hence their effect on profits.
- Explain what the firm can do to reduce its cost and increase its revenue & profits in short run and long run?
- Explain why marginal cost curve intersects both the average variable cost curve and the average cost curve at their lowest point?
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