Economics of Enterprise Answers

According to the Department of Labour’s new rates, domestic workers working in Area A (bigger metropolitan areas) who work more than 27 ordinary hours per week, must be paid a minimum of R 13,69 per hour.
Workers who work fewer than 27 hours per week, must be paid a minimum of R 16,03 per hour.
This will mean that a domestic worker who works 45 hours per week will now earn a minimum of R2 669,24 a month.
With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour hours as your quantity variable.

With aid of a well labelled production possibility curve explain each of the following concepts: Efficiency
Opportunity Cost
Scarcity Choice

Explain how Google generates revenue and exploits innovation in digital technology to identify future revenue growth. You should also consider the risk factors for future revenue generation.

A company produces two competing products whose demand schedules are
q1 = 219 - 1.8p1 + 0.5p2
q2 = 303 - 2.1p2 + 0.8p1
What price should it charge in the two markets to maximize total sales revenue?

show the matimatical proof for P=AR=MR

Assume that you have to determine the optimal amount of workers (L) that need to be hired in a
factory. The Marginal Benefit to the factory is approximately given by the expression:
MB = 100,000 - L.
The Marginal Cost to the firm is approximately given by the expression:
MC = 10,000 + L
2
.
a) Explain in your own words the Marginal Approach. How do you make a decision using this
approach?
b) Why the model has the Marginal Benefit as decreasing?
c) Why the model has the Marginal Cost increasing at an increasing rate?
d) Calculate the optimal of Labour using the Marginal Approach.

e) Make a well labelled diagram that illustrates your solution.
f) What can be some of the limitations of the Marginal Approach? What other solutions or
approaches can you use to determine how many workers you need to hire?

Assume that you have to determine the optimal amount of workers (L) that need to be hired in a
factory. The Marginal Benefit to the factory is approximately given by the expression:
MB = 100,000 - L.
The Marginal Cost to the firm is approximately given by the expression:
MC = 10,000 + L
2
.
a) Explain in your own words the Marginal Approach. How do you make a decision using this
approach?
b) Why the model has the Marginal Benefit as decreasing?
c) Why the model has the Marginal Cost increasing at an increasing rate?
d) Calculate the optimal of Labour using the Marginal Approach.

e) Make a well labelled diagram that illustrates your solution.
f) What can be some of the limitations of the Marginal Approach? What other solutions or
approaches can you use to determine how many workers you need to hire?

How can we show overall demand visually?

How the New York Stock Exchange is being hit during the february coronavirus crush?

2. Suppose that Jones and Smith have each decided to allocate $1000 per year to an entertainment budget in the form of hockey games or rock concerts. They both like hockey games and rock concerts and will choose to consume positive quantities of both goods. However, they differ substantially in their preferences for these two forms of entertainment. Jones prefers hockey games to rock concerts, while Smith prefers rock concerts to hockey games.
a. Draw a set of indifference curves for Jones and a second set for Smith.
b. Using the concept of marginal rate of substitution, explain why the two sets of curves are different from each other