Economics of Enterprise Answers

The impact lag is shorter for monetary policy than for fiscal policy.

a. True

b. False

Using examples of your choice, discuss whether the desirability of the worldwide movement towards the market economy and away from the planned economy

The Production Possibility Curve is a constrained diagram, showing the maximum production capacity of a country". Using examples of your choice, discuss the validity of the statement. 

Solve this question: Supposed a consumer utility function is written as U=(2q1,q2) where q1 and q2 are commodities 1 and 2 respectively. Let their respective price be given as p1=#2,p2=#8 and income be given as: B=#240. Use the above data to:

A. Find the maximum values of q1 and q2 that the consumer will consumed.

B. Show that the budget constraint is satisfied in the sense that all the income will be spent.

C. Show that the equal marginal principle is fulfilled.

The Arun ice cream’s lowers the price of its vanilla ice cream from Rs.55/- per kg to Rs.40/ kg. Vanilla ice cream sales increases by 20 %. The company notices that the sales of chocolate syrup increased by 10 %.

a. What is the price elasticity co-efficient of vanilla ice cream?

b. Why have the sales of chocolate syrup increased and how would you measure the effect?

c. Overall, do you think that the new price policy was beneficial for the Arun ice cream?

Enumerate instance when the environment is affected by the production and distributive activities of a firm.what are the positive contributions of the firm in paying the correct amount of taxes due to the government?

Juan Hernandez is a successful business owner. His landscaping business is growing, and a few months ago he decided to bring in somebody to manage his office operations since he had little time to keep on top of that activity. However, this individual can’t seem to make a decision without agonizing about it over and over and on and on. What could Juan do to help this person become a better decision maker?

Suppose you are a monopolist and find that the demand elasticity of your product is different in two markets. What would be your pricing strategy?

Suppose the short run production function can be represented by Q=60000L0^2_1000b^3. Then determine

The level of labor employment that maximizes the level of out put

Total cost =400+20q-2qsquare+2/3qcube, determine the firm's Short run supply curve with its graph