Question ONE (30 points) A local shop orders 400 cases of Coca Cola each week and sells them at a price of $5.00 per case. At the end of the first week, they have only sold 160 cases. (6 points each) 1. What is the total revenue received from sales? 2. What economic situation is the shop facing, surplus or shortage? Why? 3. What will have to happen to price in order for equilibrium to be attained? 4. If the price of coca cola increases, which of the curves is going to shift, supply or demand? Explain your answer. 5. Which of the following can lead to an increase in the supply for Coca Cola? An increase in consumers' income, assuming Coca Cola is normal. An increase in the wages paid to workers who are working in Coca Cola factory. An increase in consumers' income, assuming Coca Cola is normal. New machines have been introduced in producing Coca Cola. SH Question Three (40 points): Assume that the price in the market is $2 per output, the wage rate paid to cach worker is $20/day and the total fixed cost - $10 Workers Output Variable Total Total Marginal Marginal Marginal Value of per day per cost Revenue cost Revenue Cost Product marginal day (S/day) S/day S/day $/unit $/unit unit/worker product (S) 0 1 40 3 130 5 165 7 181 Omin 1. Complete the missing information in the above table. (14 points) 2. From the above table, what is the maximum profit the producer will make? Explain your answer using the MR/MC concept. (6 points) 3. From the above table, how many workers the producer should use? (6 points) 4. A firm encountering economies of scale over some range of output will have a: (6 points) A) rising long-run average cost curve. B) falling long-run average cost curve. C) constant long-run average cost curve. D) rising, then falling, then rising long-run average cost curve. Explain your answer. 24 AaBbCcD AaBbCcD AaBbCcD AaBBC&D AaBBCD NaBbCcDd AaBbCcDd AaBb AaB OOoComp... 00oComp. 00oComp. 00oComp._000Comp... Normal 1 No Spacing Heading Head Paragraph Question 2: (50 marks) Which three conditions did Corey (1996) suggest lead to the potential for unethical behavior in marketing? According to Corey (1996) what are some of the conflicting pressures that confront marketing managers in the context of a local/regional organization of your choice? To what extent is a marketer influenced by the outer moral environment and inner personal factors in the selected organization?Provide examples to support your answers. (700 words) 1 End of Assessment Final Q-Fall 2020 2021-V (1) - Micino Word AaBbCD AaBbced AaBCD ABCD ABCD Abbcod ba AaBbc AaBbcc OOoComp. 00oComp. 00oComp... OOoComp - Comp Paragraph Question 2: (50 marks) Which three conditions did Corey (1996) suggest lead to the potential for unethical behavior in marketing? According to Corey (1996) what are some of the conflicting pressures that confront marketing managers in the context of a local/regional organization of your choice? To what extent is a marketer influenced by the outer moral environment and inner personal factors in the selected organization?Provide examples to support your answers. (700 words) End of Assessment