Economics of Enterprise Answers

If we assume that a given bus market is in perfect competition which charges a flat fare of $1 and if the formula for the total demand in the market is given by qd=250-60p where qd is the quantity demand at a given price. if we further assume constant returns to scale. (A)what is the total market demand at the $1 flat fare?
(B)if the market is shared by 4 firms what is the number of passengers carried by each company
(C)if the cost per kilometre is $1.60, average utilisation 20 passengers per vehicle kilometre and average trip distance 10 kilometre
1 what is the level of bus kilometres required to service this market
2 what profits are being made
3 what type of profit is this normal or abnormal
4 what is the cost per passenger carried(as opposed to the cost per vehicle kilometre)
(D) as this perfect competition, new firms may enter the market and compete this profits away . What price therefore will ensure that only normal profits are made
(E) the answer to part D should be the same as answer to C why

if we assume that a given bus market is in perfect competition which charges a flat fare of $1 and if the formula for the total demand in the market is given by qd=250-60p where qd is the quantity demand at a given price. if we further assume constant returns to scale. what is the total market demand at the $1 flat fare?

Explain how each of the following would affect the NHLPA’s bargaining position.

a. Russia’s Kontinental Hockey League signs a large number of NHL stars.
b. A change in the tax laws increases the profitability of owning stock and decreases the profitability of owning a sports franchise.

Show how you will deal the following case, giving reasons for your answer:
You receive a telephone call from the manager of a local store to the effect that Mrs. Angelina, One your customers, is purchasing goods for which she is paying by cheque.Mrs. Angelina wishes to take the goods with her.The manager wants to know if the cheque of $25000 will be banned.

Assume that a firm hires only labour and capital to produce bicycles

Explain the cost minimization rule for this firm and why this rule is logical

Suppose that the firm hires 100 units of capital and 500 units of labour and that the MPl is 20 while MPk is 25. If a unit of labour costs $4.00 and a unit of capital costs $5.00, is the firm minimizing costs?
Explain

If the price of capital falls to $4.00 what should the firm do to minimize cost? Explain why your answer is consistent with the cost minimization rule.

Write-Right, Inc. is a vertically integrated firm that produces both paper and writing tablets. The demand for tablets is given by:

PT = 1.00 - 0.001QT

where QT is the quantity of tablets produced. The marginal cost of producing the paper necessary for each tablet is:

MC = 0.20 + 0.001QT

It costs $0.10 to make the paper into a writing tablet. If there is no external market for the paper, what transfer price should top management set for the paper?

four firm supplying homogeneous product have identical cost function given by C(Q)=40Q. if demand curve for the industry is given by m=100-Q. find the equilibrium output if they are cournot competitors what would be the resultant market price? what are the profit of the each firm ?

Explain the sources funding available for the new venture. Give at least five examples.

Discuss the key decist variables in screening and selecting opportunities .

Enumerate the cardinal characteristics of entrepreneurs that distinguish them from ordinary people .