Issue 9/10/2014
Revision Date 25/06/2018
Ref No. ECT-ACAF-ACAFO-FRM.011
Individual Final Project
Date
23/5/2021
Time:
Total Weighted
Mark:
9:00 pm
40
Student’s Name
Student’s ID
Course Name/ Code
Microeconomics / BUS 201
Instructors
Dr Myriam Aloulou
Semester
Spring, 2021
CLO2: Describe the production possibilities frontier and
relate its importance to utilizing firms’ economic resources
efficiently.
CLO3: Construct the supply and demand curves and
CLOs as per the
Syllabus
interpret them to understand market forces.
CLO7: Employ the costs, output concepts and revenue
curves and their relationships in order to maximize the
economic profits of firms.
CLO8: Use the characteristics of market structures to
formulate market economic activities of the firm.
Questions
1
2
3
4
5
Total
Point
8
6
10
9
7
40
Student Mark
Note: This Project accounts for 40 % of the Student Final Grade.
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Issue 9/10/2014
Revision Date 25/06/2018
Ref No. ECT-ACAF-ACAFO-FRM.011
Individual Final Project
Question 1: (8 marks)
Classify these firms into adequate market structure and explain your classification. (8
marks)

Sporting and athletic goods (2 marks)

Fresh flower retailing (2 marks)

Petrol service station in Abu Dhabi. (2 marks)

Telecom operator in UAE (2 marks)
Question 2: (6 marks)
Suppose that ABC firm has 100 hours of labor a day used to produce snacks and swimming classes.
The data below presents the maximum quantity of each good produced.
snacks
Labor
Swimming classes
(hours)
(classes per week)
0
0
or
0
20
4
or
10
40
8
or
18
60
12
or
24
80
16
or
28
100
20
or
30
1. Explain if ABC firm can produce 8 classes and 28 snacks per week? (2 marks)
2. Suppose that ABC firm produces 8 swimming classes and 18 snacks per week, explain
if this production is efficient. (2 marks)
3. Suppose ABC produces 16 classes and 10 snacks a week. Does it face a tradeoff?
Explain (2 marks)
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Issue 9/10/2014
Revision Date 25/06/2018
Ref No. ECT-ACAF-ACAFO-FRM.011
Individual Final Project
Question 3: (10 marks)
The table below shows ABC firm short-run production function. The company hires
workers at a wage rate of $400 a day and his total fixed cost is $1000.
Labor
Total product
(workers)
(output)
0
0
1
12
2
25
3
30
4
44
5
50
a. Calculate the average total cost of producing 25 units. (2 marks)
b. Calculate total cost of producing 47 units. (2 marks)
c. Calculate average variable cost if 30 units are produced. (2marks)
d. Calculate the marginal product of producing 44 units. (2 marks)
e. Calculate average product of the 4th worker (2 marks)
Question 4 : (9 marks)
Fill in the below table, the wage equals AED 300 for each worker. In addition, each unit of
output is sold at a price of AED 10.
Number
Total
of
Output Product
workers
Marginal
Value
of Marginal
of Wage
per
Labor (MPL) Product of Labor Worker
Profit
(PM)PM=VMPLWage
VMPL = P x W
MPL
0
0
1
60
300
2
110
300
-
-
-
3
Margin
-
Issue 9/10/2014
Revision Date 25/06/2018
Ref No. ECT-ACAF-ACAFO-FRM.011
Individual Final Project
3
150
300
4
180
300
5
200
300
6
210
300
(0.5x18= 9 marks)
Question 5: (7 marks)
Explain the impact of COVID19 Pandemic on Household demand and firms supply. Defend
your analysis with real life examples.
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Issue 9/10/2014
Revision Date 25/06/2018
Ref No. ECT-ACAF-ACAFO-FRM.011
Individual Final Project
1. Project Assessment Criteria
The assessment of the project will be undertaken by the instructor.
Marks distribution will be as follows:
Report Body
40 marks
2. Project Submission Date:
This project is due on week 16; and it is an Individual project. The report should be uploaded
using the (Moodle) ONLY before the due date.
Only one submission is allowed.
 Project due date is May 23rd 2021 before 9 PM.
3. Late Submission Instructions:
All students must comply with the submission deadlines.
Students are required to submit the report in soft copy also through the Turnitin system which
is available online at https://lms.ectmoodle.ae
High “Similarity Index” will result in low marks for the project.
4. Format:
 The cover page is important; please keep it in your submission.
 High similarity in the answers will affect your marks negatively.
 Follow the instructions that will be explained to you in class by the instructors.
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