Economics of Enterprise Answers

Suppose a soap-manufacturing production process is described by the following 

equation:

Y = a + b log K + с log L

Where, 

Y= Output (number of soaps produced)

K=Capital 

L=Labor

a, b and c are constants

Suppose 0<a<1, 0< b<1 

a. Find the Marginal Product of Labor (MPL) and Marginal Product of Capital (MPK)

in the production of soap

b. Is MPL diminishing, increasing or constant as L increases?

c. Is MPK diminishing, increasing or constant as K increases?

As the Southern African Development Community strives to move towards a single market, administrative difficulties are only one of many anticipated difficulties for international logistics participants. Using practical examples, examine six (6) other factors that can impact on international logistics operations.

Based on the historical movement of AUD/EUR exchange rate, predict what the rate will be on 31 December 2021 (3 months from now).

b) Discuss the effect of Purchasing Power Parity on AUD/EUR exchange rate on 31 December 2021. (What key points should be mentioned when answering this question?)

The graph shows the demand curve for haircuts and the market price of a haircut.

If the price of a haircut falls from ​$20 to ​$10​, what is the change in consumer​ surplus?