Economics of Enterprise Answers

Patterson Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 250 units, and this is constant throughout the year. Carrying cost is estimated to be $1 per unit per year, and the ordering cost is $20 per order.

1.) A fund is to be donated by wealthy man to provide scholarships to deserving students. The fund will grant P5,000 for each semiannual of the first five years, P8000 for each quarter of the next five years, and P10,000 each month thereafter. The scholarship will start one semiannual after the fund is established. If the fund earns 8% per year compounded bimonthly, what is the amount of the donation?

2.) A woman is considering giving an endowment to a university in order to provide payments of P55,000, P85,000, respectively, at the end of the first, and second semiannual during a year. If the interest rate is 12% compounded quarterly, what is the capitalized equivalent that must be deposited now so that the semiannual payments can be repeated forever?

distinguish parking list from out origin in international trade

A monopolist can produce at constant average and marginal costs of AC = MC = 9. The firm faces a demand curve given by:
q = 75 –– p

Calculate the profit maximizing price quantity combination for the
monopolist. Also calculate the monopolist’’s profits

Assume for a perfectly competitive firm that MC = AVC at $12, MC = ATC at $20, and MC = MR at $16. On the basis of this information, the firm should not be in production. Do you agree?

4. From the following information pertaining to M/s ABC & Co. Ltd., prepare its
trading, profit & Loss A/c for the year ending 31st March 2012 and summarized
Balance Sheet as on that date.
Current ratio - 2.5
Quick Ratio - 1.3
Proprietary ratio - 0.06
Gross Profit to sales - 10%
Debtors Velocity - 40 days
Sales - 2,73,000
Working capital - 1,20,000
Bank overdraft - 2,15,000
Share Capital - 2,50,000
Closing Stock is 10% more than opening stock
Net profit 10% of proprietary fund.

Suppose an economy has 10,000 people who are not working but looking and available for work and 90,000 people who are working. What is its unemployment rate?

Now suppose 4,000 of the people looking for work get discouraged and give up their searches. What happens to the unemployment rate? Would you interpret this as good news for the economy or bad news? Explain.

the rate of inflation changes. what effect would have on the value of firm?

the workforce votes to unionize. what effect would have on the value of the firm?

the firm is required to install pollution control equipment. what effect would have on the value of the firm?