Economics of Enterprise Answers

A Company uses 2,500 units during the course of the year, and its usage is relatively constant throughout the year. These units are purchased from a supplier 100 kilometers away for Ksh.15 each, and the lead time is 2 days. The holding cost per unit per year is Ksh.1.50 (or 10% of unit cost) and the ordering cost per order is Ksh.18.75. There are 250 working days per year for this company.
a) What is EOQ?
b) Given the EOQ, what is the average inventory?
c) In minimizing cost, how many orders would be made each year? What would be the annual ordering cost?
d) Given the EOQ, what is the total annual inventory cost ( including purchase cost)
e) What is the time between orders?
f) What is the ROP(re-oder point)

Introduction of ancient communities
Needs and wants of the ancient communities
information on system and practiced in exchanging their goods
Logical arrangement of facts
concusion

Critics have charged that the market economy (1) fails to provide goods and service that are needed yet are unprofitable and (2) imposes certain harmful effects, or “externalities,” upon the public at no expense to those who caused them.
Explain these arguments
Tell whether you agree or disagree with them and why

What do you understand by demand forecasting? Survey method is one of the techniques of demand forecasting. Discuss its different types.

five possible reasons for a product having an inelastic demand

Q2. A firm has three stores with a total of 80 computers. An order is received from the Local Authority for 70 units to be delivered to 4 schools. The transport costs in $`s from stores to schools are shown below together with the availabilities and requirements. (15mks)
schools
Stores
I
II
III A B C D supply
3 5 2 6 35
4 3 3 1 25
2 1 5 2 20
Demand 18 27 17 8

a) It is required to make the most economic deliveries.
Set up the initial tableau and make the initial feasible deliveries.
b) find the transportation schedule that minimizes cost.

In some cities in England they have several teams in the premier league (the country's top soccer league). Explain how this may affect the monopoly of those teams. ( Doe the presence of other teams affect their power to influence prices? why?

The packing in a cooling tower that cools condensing water for a power plant progressively deteriorates and results in gradually rising cost due to reduced plant efficiency. These costs are treated as lump sums at the end of the year, as shown in Fig 3-6. The cost is zero for the first year and then increases $1000 per year until the packing is 16 years old, when replacement is mandatory. At a point 8 years into the life of the packing (just after the $7000 annual cost has been assessed), a decision is to be made on the plan for the next 8 years, i.e., whether to replace the packing or to continue with the existing packing. Money can be borrowed at 9 percent interest, compounded annually. What is the maximum amount that could be paid for the packing in order to justify its replacement? figure 3-6: http://i251.photobucket.com/albums/gg305/dhiezz_zzz/3-6.png?t=1487640332

analyse the effect of decrease in supply of cement on the price of cement blocks. illustate your answer with a diagram and explanation

How does the minimum wage affect
employment in these fast-food restaurants?
Draw a graph to show what has
happened, and estimate the effects on
employment in the fast-food sector.