Economics of Enterprise Answers

if the national income equation is Y=C+I+G+E-M
where
C=8+0.6Yd
I=25
G=10
E=70
M=15+0.2Y
T=7+0.3Y
R=25-0.3Y
(a) determine the economy's national income/output
(b) determine the economy's multiplier applicable to government spending and interpret its meaning
(c) use the multiplier applicable to exports and explain how a $100 billion decline in the demand for exports could affect the following variables:
(i) GDP
(ii) Balance of trade
(iii) government budget

how do i calculate value of the budget deficit or surplus at the equilibrium level of income?

explain the logical impacts to business decision making of availiability of substitutes, share of consumer income devoted to a good, consumer time horizon

All Open University Malaysia (OUM) Students are identical and they are all indifferent between attending the OUM and their next best alternative. Students eat are the student union. a) If OUM rents space in the Student union to several food provider (such as Subway and MacDonald’s) who then compete with each other, how much rent can OUM collect? b) If OUM rents all the space in the student union to a single food provider who charges monopoly prices, how much rent can OUM collect? c) IF prospective student

All Open University Malaysia (OUM) Students are identical and they are all indifferent between attending the OUM and their next best alternative. Students eat are the student union.
a) If OUM rents space in the Student union to several food provider (such as Subway and MacDonald’s) who then compete with each other, how much rent can OUM collect?

b) If OUM rents all the space in the student union to a single food provider who charges monopoly prices, how much rent can OUM collect?


c) IF prospective students are aware of the dining situation on campus, how would the decision to go with a monopoly food provider affect the amount of tuition the university can collect?

d) In order to maximize its profits, should OUM rent to a monopolist or to several competitors?

All Open University Malaysia (OUM) students are identical and they are all indifferent between attending the OUM and their next best alternative. Students eat at the student union.
a. If OUM rents space in the student union to several food provider (such as Subway and McDonald’s) who then compete with each other, how much rent can OUM collect? (Illustrate your answer with a graph, showing the quantity of food bought on the horizontal axis and the price of food on the vertical.)
[4 marks]
b. If OUM rents all the space in the student union to a single food provider who charges monopoly prices, how much rent can OUM collect?
[4 marks]
c. If prospective students are aware of the dining situation on campus, how would the decision to go with a monopoly food provider affect the amount of tuition the university can collect?

Eplain three assumptions concerning consumer behaviour.