Economics of Enterprise Answers

According to less developed economies,dumping is not a preferable policy.why is it still in operation?China is doing dumping from long time,how it will change the world trade after covid19? Elaborate with facts?

According to less developed economies,dumping is not a preferable policy.why is it still in operation?China is doing dumping from long time,how it will change the world trade after covid19? Elaborate with facts?

discuss oligopoly behavior in detail with reference to collusion and the role that the south african competition act 89 of 1998?

Liquor manufacturers use an advertising campaign to counter a government anti-binge-drinking campaign.

A company’s second year operations can be summarized as follows:

Revenues: $110 000

Expenses (except CCA): $65 000

Its capital asset purchases in the first year totalled $100 000, with none in the second year. With a CCA rate of 20 percent and a tax rate of 55 percent, how much income tax did it pay?

1. Assume a firm’s total cost function is:- TC=12+60Q-15Q2+Q3

Required: Suppose that the firm produces 20 units of output. Calculate

Total fixed cost (TFC),

Total variable cost (TVC),

Average total cost (ATC),

Average fixed cost (AFC),

Average variable cost (AVC), and

Marginal cost (MC).

Bank will give you after 5-years $1000, 000 with considering 12%-interest. For

this situation evaluate the present, annual, & future values at simple & compound

interest rates.

1. The demand for petrol rises from 500 to 600 Barrels when the price of a particular scooter is reduced from Birr. 25000 to Birr.22000. Find out the cross elasticity of demand for the two. What is the nature of their relationship?

A company has the following demand equation

Q= 1000–3000P+10A

Q = Quantity demanded

P = Product Price

A = Advertisement expenditure

Assume that P = 3 and A = 2000

2. Suppose the firm drops the price to Birr. 2.50 would this bebeneficial.

3. Suppose the firm raises the price to Birr. 4.00 While increasingits advertisement expenditure by 100 would this be beneficial? Explain

Given that IS is Y = 2500-50i, and the interest rate reaction function is ip = 2 + 0.5(P-P*),

where ip is the central bank policy rate. Assume that i (interest rate) is 0.5 + ip (interest rate is a wedge over the policy rate). Determine the AD function. If AS function was Y =0.25(P-P*) + 2000 determine Y* and P* and inflation rate. Assume P* = 105.

Explain the type of pricing strategy that you as the manager of a

company would implement for Good X and Good Y with the following price elasticity of demand co efficients. Use diagrams to motivate your answer.



a). Good X: 2.3

(b). Good Y: 0.6