Quelpr

Theory of Supply · CAPE Economics Unit 1

52 past-paper questions on Theory of Supply, part of Methodology: Demand and Supply, from every CAPE Economics Unit 1 paper on Quelpr.

Practise Theory of Supply
  1. 5(a)1 mark· CAPE Economics Unit 1 · 2005 · Paper 1State the difference between the Average Total Cost Curve (ATC) and the Average Variable Cost Curve (AVC).
  2. 5(b)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1Explain why the Marginal Cost Curve (MC) intersects the ATC and AVC curves at their respective minimum points.
  3. 5(c)3 marks· CAPE Economics Unit 1 · 2005 · Paper 1Explain why point 'A' represents the shutdown point for the firm.
  4. 11(b)4 marks· CAPE Economics Unit 1 · 2005 · Paper 1Match EACH of the four factors of production (land, labour, capital, and entrepreneurship) with the dollar amount paid by Jack's Inc.
  5. 1(a)12 marks· CAPE Economics Unit 1 · 2005 · Paper 2Copy and complete the table for APP, MPP, AVC, and MC.
  6. 1(b)(i)2 marks· CAPE Economics Unit 1 · 2005 · Paper 2Define Average Physical Product (APP) OR provide the formula for calculating it.
  7. 1(b)(ii)2 marks· CAPE Economics Unit 1 · 2005 · Paper 2Define Marginal Physical Product (MPP) OR provide the formula for calculating it.
  8. 1(b)(iii)2 marks· CAPE Economics Unit 1 · 2005 · Paper 2Define Average Variable Cost (AVC) OR provide the formula for calculating it.
  9. 1(b)(iv)2 marks· CAPE Economics Unit 1 · 2005 · Paper 2Define Marginal Cost (MC) OR provide the formula for calculating it.
  10. 1(c)2 marks· CAPE Economics Unit 1 · 2005 · Paper 2State what happens to average physical product (APP) and marginal physical product (MPP) as output increases.
  11. 1(d)2 marks· CAPE Economics Unit 1 · 2005 · Paper 2State what happens to average variable cost (AVC) and marginal cost (MC) as output increases.
  12. 1(e)(i)4 marks· CAPE Economics Unit 1 · 2005 · Paper 2Explain how output will be affected when a variable input is added to a fixed input.
  13. 1(e)(ii)4 marks· CAPE Economics Unit 1 · 2005 · Paper 2Explain how increasing levels of output affect costs.
  14. 56 marks· CAPE Economics Unit 1 · 2006 · Paper 1Complete columns 4 (Total Costs), 5 (Average Total Costs), and 6 (Marginal Costs) in the answer booklet.
  15. 2(a)(i)2 marks· CAPE Economics Unit 1 · 2006 · Paper 2Define the term 'production function'.
  16. 2(a)(ii)9 marks· CAPE Economics Unit 1 · 2006 · Paper 2State where each of the three stages of production begins and ends.
  17. 2(a)(iii)9 marks· CAPE Economics Unit 1 · 2006 · Paper 2With the aid of the diagram on page 3, explain why production tends to occur in Stage TWO of the production stages rather than Stage ONE or Stage THREE.
  18. 2(b)6 marks· CAPE Economics Unit 1 · 2006 · Paper 2Explain the law of diminishing returns.
  19. 2(c)(i)2 marks· CAPE Economics Unit 1 · 2006 · Paper 2Constant returns to scale
  20. 2(c)(ii)2 marks· CAPE Economics Unit 1 · 2006 · Paper 2Increasing returns to scale
  21. 2(c)(iii)2 marks· CAPE Economics Unit 1 · 2006 · Paper 2Decreasing returns to scale
  22. 2(c)(iv)2 marks· CAPE Economics Unit 1 · 2006 · Paper 2Economies of scale
  23. 2(d)(i)8 marks· CAPE Economics Unit 1 · 2006 · Paper 2Discuss one reason for economies of scale and one reason for diseconomies of scale.
  24. 2(d)(ii)8 marks· CAPE Economics Unit 1 · 2006 · Paper 2Explain how economies and diseconomies of scale influence the shape of the long-run average cost curve of a firm.
  25. 5(a)12 marks· CAPE Economics Unit 1 · 2006 · Paper 2Define each of the four broad types of resources: land, labour, capital (including human capital), and entrepreneurship. State the role each plays in the production process.
  26. 2(a)(i)2 marks· CAPE Economics Unit 1 · 2007 · Paper 2State the formulae for average physical product (APP) and marginal physical product (MPP).
  27. 2(a)(ii)6 marks· CAPE Economics Unit 1 · 2007 · Paper 2Copy and complete the short-run production function table by calculating APP and MPP.
  28. 2(b)(i)8 marks· CAPE Economics Unit 1 · 2007 · Paper 2Draw a diagram displaying the average physical product and marginal physical product curves.
  29. 2(b)(ii)6 marks· CAPE Economics Unit 1 · 2007 · Paper 2Discuss the relationship between the average physical product curve and the marginal physical product curve.
  30. 2(b)(iii)9 marks· CAPE Economics Unit 1 · 2007 · Paper 2Explain why the firm's marginal product initially rises and then falls as additional units of labour are employed.
  31. 2(c)12 marks· CAPE Economics Unit 1 · 2007 · Paper 2Construct a table showing Total Fixed Cost, Total Variable Cost, Total Cost, Average Variable Cost, Average Total Cost, and Marginal Cost, given that Total Fixed Cost is 30.00 and wage per worker is 20 per day.
  32. 5(d)16 marks· CAPE Economics Unit 1 · 2008 · Paper 2Discuss the relationship between factor rewards and cost of production of poultry on a medium to large size farm.
  33. 5(a)(i)4 marks· CAPE Economics Unit 1 · 2010 · Paper 2Calculate for EACH unit of labour the marginal product.
  34. 2(a)(i)5 marks· CAPE Economics Unit 1 · 2012 · Paper 2State the formula for each of the following costs: Total cost, Marginal cost, Average fixed cost, Average total cost, and Variable cost.
  35. 2(a)(ii)8 marks· CAPE Economics Unit 1 · 2012 · Paper 2Copy and complete the table to determine Total Cost, Marginal Cost, Average Fixed Cost, and Average Total Cost for output levels 0 through 4.
  36. 2(b)6 marks· CAPE Economics Unit 1 · 2012 · Paper 2Using a diagram, explain the relationship between marginal cost and average total cost.
  37. 2(c)6 marks· CAPE Economics Unit 1 · 2012 · Paper 2Using a diagram, explain the relationship among the marginal cost curve, the firm's supply curve, and the average variable cost curve.
  38. 2(a)(i)2 marks· CAPE Economics Unit 1 · 2013 · Paper 2Define marginal cost.
  39. 2(a)(ii)2 marks· CAPE Economics Unit 1 · 2013 · Paper 2Define average variable cost.
  40. 2(c)9 marks· CAPE Economics Unit 1 · 2013 · Paper 2Using a correctly labelled graph, explain the relationship between the marginal cost curve and the supply curve in a competitive market.
  41. 5(b)(i)a)3 marks· CAPE Economics Unit 1 · 2013 · Paper 2Calculate the marginal product for EACH additional worker.
  42. 3(a)(i)7 marks· CAPE Economics Unit 1 · 2014 · Paper 2Copy and complete the table to show marginal cost and average cost for each level of output.
  43. 3(a)(ii)5 marks· CAPE Economics Unit 1 · 2014 · Paper 2Use the completed table from (a)(i) to plot marginal cost, marginal revenue, and average cost curves on the same diagram.
  44. 3(b)(i)5 marks· CAPE Economics Unit 1 · 2014 · Paper 2With the aid of an example, explain the relationship between the marginal cost curve and the average cost curve.
  45. 2(a)(i)2 marks· CAPE Economics Unit 1 · 2016 · Paper 2Define the term 'total product'.
  46. 2(a)(ii)2 marks· CAPE Economics Unit 1 · 2016 · Paper 2Define the term 'average product'.
  47. 2(a)(iii)2 marks· CAPE Economics Unit 1 · 2016 · Paper 2Define the term 'marginal product'.
  48. 2(b)(i)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Explain the law of diminishing returns in the context of the manufacture of electric fans.
  49. 2(b)(ii)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Explain the concept of the short-run in the context of the manufacture of electric fans.
  50. 2(c)13 marks· CAPE Economics Unit 1 · 2016 · Paper 2Assess, with the aid of a diagram showing the three stages of production, the ideal production stage for electric fans.
  51. 1(c)8 marks· CAPE Economics Unit 1 · 2017 · Paper 2Evaluate the CEO's claim that expanding physical capacity to meet high demand will allow the firm to benefit from economies of scale.
  52. 3(a)(i)2 marks· CAPE Economics Unit 1 · 2021 · Paper 2Define the term 'marginal physical product'.

Related topics in Methodology: Demand and Supply