# HI5003 Economics for Business: Competitive Firms

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## Questions:

(i)    Use the graph below to explain the output, profit and loss conditions for monopolistically competitive firms. Show your work where appropriate in reference to the Graph.  Firm Lan T-shirt monopolistic competitive firm

(ii)    With examples, examine the barriers to business entry for imperfect competition firms

The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that Examine the status of the economic welfare in Goodland Republic in 2018 based on your GDP deflator, nominal GDP and Real GDP. Also, explain the reasons why it is necessary to calculate real GDP. Show your work.

Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle.

1.    Suppose you have \$200,000 in a bank term account. You earn 5% interest per annum from this account.

You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%.

Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million. Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed. Calculate Australia’s labor force and the number of people in the civilian population who were not in the labor force? Also, with examples examine the causes of structural unemployment in Australia

Use the Aggregate supply and Aggregate Demand Model below to answer the questions that follow Aggregate Supply and Aggregate Demand Model

(i) Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd  a multinational construction company in which you are the Chief Exec of the firm that that is highly diversified and recieves funds to construct highways and other government funded projects. Also, explain the factors that cause the Aggregate Demand curve to be downward sloping left to right.

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