Economics of Enterprise Answers

Demonstrate with examples that entrepreneurship is a science

Someone who works on a farm represents which factor of production?

At Roy's Music Shack, when the price of CDs is $13,500 are demanded. When the price of CDs is $14,200 are demanded. Using the averages of the two and quantities, the price elasticity of demand for CDs is ?

Staff members of financial analysis department of global electronic have determine the required investment and rate of return on each of the following capital project
Capital required internal rate of
Project investment million return(%)
A 5.2 12.9
B 8.6 15.2
C 3.4 10.0
D 5.1 14.8
E 11.2 19.0
F 6.5 7.9

Use the following data to compute total variable cost, total fixed cost, average fixed cost and marginal cost for each output rate shown, also use the information to determine equation for each of the total and per-unit cost functions
Production Rate of Total cost
Period output (0) (Tc)
1 10 1,800
2 0 1000
3 4 1320
4 2 1160
5 7 1560

A person managing a laundry for someone else for $30,000 per year decides for open his own laundry. Revenue during the first year of operation is $100,000 and the expenses are $3,000 for salaries, $10,000 for supplies, $8000 for rent, $2000 for utilities and $5000 for interest for a bank loan. calculate
(A) explicit cost
(B) Implicit Cost
(C) Accounting Profit
(D) Economics Profit

Assume you are a policymaker in Washington DC. Lobbyists for the preschoolers of America have put pressure on their representatives to cap prices on graham crackers. You have been assigned a position on a new committee to study the impact of a price ceiling on graham crackers.
a.) Illustrate using a fully labeled supply and demand graph (label all the axes and any lines you put in your graph) what such an artificial price looks like.
b.) Explain what the results of such a move are for the graham cracker market. In other words, will there be a SHORTAGE, a SURPLUS, or neither created? Why?

a market consists of three people A, B, and C, whose individual demand equation are as follows:
A: P = 35 - .5Qa

the demand equation is estimated to be 50 - 3p + 2po where po is the price of other good. assume the average value of P is $3 and the average value of po is $6.
a. what is the price elasticity at the average values of P and Po? how should the price of the good can changed to increase total revenues?
b. what is the cross elasticity at the average values of P and Po? what is the relationship between the two goods?
c. if equation is correctly estimated is good inferior a necessity or a luxury? Explain.

a contract calls for the payment of $ 400 at the end of four years and $ 8000 at the end of ten years. if interest rate is 5 percent what is the present value of this contract.