1
Assessment Description
Unit Code: ECO105
Unit Title: Principles of Economics
Assessment Title: Assessment Task 3
Type of Assessment: Written
Due date: 16
th
September, 2016
Length/Size/Amount: As required but no more than 2000 words (excluding graphs)
Value: 20%
Answer all of the following questions. Each question is worth equal marks:
1) Suppose a number of Australian Universities, except Charles Darwin University, open a campus
in several Asian countries. How will this impact the enrolments at CDU? Explain using demand and
supply diagram.
(5 marks)
2) How will student enrolments be impacted at CDU if the government doubled the interest rate
charged on student loans for all tertiary students in Australia? Explain using demand and supply
diagram.
(5 marks)
3) Why is marginal cost curve upward sloping? Is marginal cost curve always going to be upward
sloping for all firms?
(5 marks)
4) What are the main determinants of economic growth? How is growth related to Production
Possibility Frontier?
(5 marks)
5) What is the market structure faced by Australia Post? Are there any substitutes available for
Australia Post’s services? What was Australia Post’s profitability in the year 2015? Show using a
diagram.
(5 marks)
6) The cost function for a firm is given as TC=200+20Q. Find the total cost, total fixed cost, total
variable cost, average variable cost, average total cost and marginal cost for output level of up to
fifteen units. Draw average total cost, marginal cost and average variable cost on a diagram. Explain
the shape of marginal cost and average variable cost curve.
(5 marks)
2
7) Compare the level of competition facing the only petrol station in a small regional town in
Northern Territory as opposed to multiple petrol stations in Darwin. Identify the market structure in
each case based on market characteristics.
(5 marks)
8) Suppose you are considering opening a 24 hour fitness facility in Sydney. What will be the level of
competition and potential profit in this market? Represent your short run and long run profit levels
on a diagram.
(5 marks)
9) Analyse the table below for a firm operating under perfect competition:
Quantity
Marginal
Cost
1 0.2
2 0.4
3 0.6
4 0.8
5 1
6 1.2
7 1.4
8 1.6
9 1.8
10 2
11 2.2
12 2.4
13 2.6
14 2.8
15 3
16 3.2
17 3.4
18 3.6
19 3.8
20 4
If the price is $2, what is the profit maximising level of output? Is the firm making an economic
profit or loss? Discuss.
(5 marks)
10) How will the increase in ageing population impact the GDP of Australia in the future?
(5 marks)
3
Preparation and submission
Format the assignment with 1.5 line spacing and size 12 point Arial font.
Assignment must be submitted on Learnline using ...
Web & Social Media Analytics Previous Year Question Paper.pdf
ECO105 Assessment Task 3 analysis
1. 1
Assessment Description
Unit Code: ECO105
Unit Title: Principles of Economics
Assessment Title: Assessment Task 3
Type of Assessment: Written
Due date: 16
th
September, 2016
Length/Size/Amount: As required but no more than 2000 words
(excluding graphs)
Value: 20%
Answer all of the following questions. Each question is worth
equal marks:
1) Suppose a number of Australian Universities, except Charles
Darwin University, open a campus
in several Asian countries. How will this impact the enrolments
at CDU? Explain using demand and
supply diagram.
2. (5 marks)
2) How will student enrolments be impacted at CDU if the
government doubled the interest rate
charged on student loans for all tertiary students in Australia?
Explain using demand and supply
diagram.
(5 marks)
3) Why is marginal cost curve upward sloping? Is marginal cost
curve always going to be upward
sloping for all firms?
(5 marks)
4) What are the main determinants of economic growth? How is
growth related to Production
Possibility Frontier?
(5 marks)
5) What is the market structure faced by Australia Post? Are
there any substitutes available for
Australia Post’s services? What was Australia Post’s
profitability in the year 2015? Show using a
diagram.
(5 marks)
6) The cost function for a firm is given as TC=200+20Q. Find
the total cost, total fixed cost, total
variable cost, average variable cost, average total cost and
marginal cost for output level of up to
fifteen units. Draw average total cost, marginal cost and average
variable cost on a diagram. Explain
3. the shape of marginal cost and average variable cost curve.
(5 marks)
2
7) Compare the level of competition facing the only petrol
station in a small regional town in
Northern Territory as opposed to multiple petrol stations in
Darwin. Identify the market structure in
each case based on market characteristics.
(5 marks)
8) Suppose you are considering opening a 24 hour fitness
facility in Sydney. What will be the level of
competition and potential profit in this market? Represent your
short run and long run profit levels
on a diagram.
(5 marks)
9) Analyse the table below for a firm operating under perfect
competition:
Quantity
Marginal
Cost
1 0.2
2 0.4
5. If the price is $2, what is the profit maximising level of output?
Is the firm making an economic
profit or loss? Discuss.
(5 marks)
10) How will the increase in ageing population impact the GDP
of Australia in the future?
(5 marks)
3
Preparation and submission
Format the assignment with 1.5 line spacing and size 12 point
Arial font.
Assignment must be submitted on Learnline using the provided
submission point.
All assignments must be typed and submitted in Microsoft Word
format.
Information related to each of the above questions can be found
in the learning materials and the
set text. However, you are encouraged to research using library
resources and online materials.
You must clearly label the answer to each question.
6. Please be aware of CDU policies on collusion and plagiarism. If
any
submission is found to have been copied from another student,
from
published or unpublished sources without proper
acknowledgement, the
matter will be escalated to the Head of School for appropriate
action. You
must clearly acknowledge all sources using Harvard referencing
system
including the textbook.
This assignment must be your own work.
Use CDU Harvard referencing style for citations.
