Economics of Enterprise Answers

Net returns after subtracting total costs from total revenue

What would you expect to happen to the rents you can charge under the following conditions?
(i) A major organization in the city closes down.

Suppose there is only one supplier in the market for product X. The marginal cost of
producing product X is constant at $200 per unit and there is no fixed cost. The market
demand for product X is described by the following schedule:
Price Quantity
$800 5
700 6
600 7
500 8
400 9
300 10
200 11
Determine the profit-maximizing output quantity and the price of product X. Explain your
answer

if there is an increase in the price of red meat, a substitute in production of milk, then

If we were to say that two variables are positively related, this means that:
a) The relationship between the two would graph as a line sloping downward.
b) The relationship between the two would graph as a horizontal line.
c) The relationship between the two would graph as a line sloping upward.
d) The relationship between the two cannot be depicted graphically in any simple way.

a decrease in the price of fertilizers and a concurrent increase in the demand for apple juice

In the market of air travel, which of the following variables would decrease demand ceteris Paribas

a shift in production from Cds (service) towards Tvs (good)

In the market for air travel, which of the following variables would decrease demand, ceteris paribus?
a) An increase in rental rates for hired cars, a substitute.
b) A rise in income of tourists.
c) A rise in the price of air travel.
d) A rise in the price of hotel accommodation, a complement.

A community in Northern Namibia produces only two goods, TVs and CDs. With the aid of properly labelled production possibilities curves illustrate each of the following (putting TVs on the vertical axis) : 2.1.1 A shift in production from CDs (services) TVs (goods) , 2.1.2 An increase in the potential output of the community due to a greater availability of the factors of production