Economics of Enterprise Answers

Quantity     Price             Total Cost

10                  20 340

20      17 400

30      15 480

40      13 580

50      12 700

60      11 840

70      9 1,020

80      7 1,280

Calculate Total Revenue

Marginal Revenue

Marginal Cost

Average cost

Q1: How a Monopolistic Competitor Chooses its Profit Maximizing Output and Price. DRAW a graph and explain your answer. 

Describe what changes are happening in Econostan from 2016 to 2017. Is the labor market in

Econostan improving?

what was the unemployment rate in Econostan in 2017?

What was the labor force participation rate in Econostan in 2017?

1. What was the labor force participation rate in Econostan in 2016?

It is expected that in the next twenty years the gross domestic product of China will become

larger than the gross domestic product of the United States. When this happens, what does it

suggest about the standards of living in both countries?

Assume you bought the following items last year: a new Honda CRV built in Ohio, a used boat, a

jacket made in France, 500 shares of stock, a movie ticket, and a cheeseburger. Which of these

items should likely be counted in last year’s gross domestic product?

Assume that over the last 10 years the gross domestic product of Econostan increased by 25%

while the population of the country increased by 35%. Over that time period, what likely

happened to the standard of living for people living in that country?

The country of Econostan had the following expenditures last year: $600,000 in consumption

expenses, $90,000 in government purchases, and $150,000 in investment expenses. Further,

$75,000 of the products bought last year in Econostan were made in other countries and

$55,000 of the products made in Econostan were exported to other countries. What was the

gross domestic product of Econostan?

Develop a business model and design a customer-driven marketing strategy for this business focusing on the following thematic areas:

1. Identifying the market and motivating why you selected that particular market

2. Identify a need and motivate why it is a demand

3. What is your value proposition and why?

4. Motivate your strategy for customer attraction, retention, satisfaction and delight