Economics of Enterprise Answers

The income elasticity of restaurant meals is 0.6. If customers income becomes 300,000 LBP instead of 200,000 LBP , the quantity demanded will

A person who is now 35 years old is planning for his retired life. He plans to invest an equal sum of Rs. 10,000 at the end of every year for the next 25 years starting from the end of the next year. The bank gives 20%interest rate, compounded annually. Find the maturity value of his account when he is 60 years old. ii)Explain Single payment present worth factor in detail

As the number of substitutes for by a particular good decreases, demand for the good will

When the price of pens is 4,000LBP, Nour buys 20 pens. As the price decreases to 1000, Nour buys 80 pens. In absolute value

The income elasticity of restaurant meals is 0.6. If customers income becomes 300,000 LBP instead of 200,000 LBP , the quantity demanded will

Find the market equilibrium if P=-40+Q and P=80-Qd

The cross elasticity between oranges and pears is -0.78, then 2 goods are ?

Suppose the demand for good X is given by Qd = 300 – 5Px - 5Py + 20 I where Px is the price of good X. Py is the price of some other good Y, and I is income. Assume that Px is currently $1, Py is currently $2, and I is currently $50.The income elasticity is

A new machine is expected to cost $6000 and have a life of 5 years . maintenance cost will be $1500 the first year , $ 1700 the second year , $ 1900 the third year , $2200 the forth year , and $2300 the fifth year . how much should be deposited in a fund that earns 9% per year , compounded monthly , in order to pay for this machine ?

3) A sticky goo oozes mysteriously from the rare wazoo tree, which grows only on the farm of Wolf Molder, just outside of Pullman, Washington. This goo, when smeared on the face, results in a tightening of the skin and the elimination of fine lines. Wolf bottles the goo at a cost of $2 per bottle and sells it to Donna Scali at a wholesale price of $w per bottle. Donna sells the goo to the general public over the Internet under the name “Youth Goo” at a price of $P per bottle. The retail demand for Youth Goo is given by P = 60 - .01Q.
(a) Write Donna Scali’s profit as a function of the number of bottles of Youth Goo she sells over the Internet and the wholesale price, πD(Q;w).
Write an equation characterizing Donna’s profit-maximizing choice of output as a function of the wholesale price w.
(b) What is Wolf’s profit as a function of the number of bottles of Youth Goo he sells to Donna, πW(Q)?
What is Wolf’s profit-maximizing choice of output?