1 Assessment Description Unit Code: ECO105 Unit Title: Principles of Economics Assessment Title: Assessment Task 3 Type of Assessment: Written Due date: 16th 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 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. 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.