Economics of Enterprise Answers

You are the manager of a firm that produces furniture. All your clients are in Kumasi (K) and Accra (A). Suppose the monthly inverse demand function for your furniture in in Accra and Kumasi combined is 𝑃 = 1200 − 4𝑄. Because of prohibitive cost of transporting furniture between Accra and Kumasi, you set up two plants, one in each town. The cost of producing furniture at each facility is given by 𝐶_A (𝑄_A ) = 8000 + 6𝑄_A² and 𝐶_K(𝑄_K) = 8000 + 6𝑄_K² where 𝑄 = 𝑄_A + 𝑄_K and 𝑄_A and 𝑄_K are the quantity of furniture produced at Accra and Kumasi respectively. Determine the profit maximizing amounts of electricity to produce in the two facilities, the optimal price and the profit. 

The leader of a federal political party made the following campaign promise: "My administration will increase spending on mask production by cutting spending on national defence." The promise can be kept if: (select all that apply)

Select all that apply:

a.

the economy moves along the production possibilities curve in the direction of more masks.

b.

the economy moves along the production possibilities curve in the direction of a lesser quantity of defence.

c.

the economy moves from a point inside the production possibilities curve toward a point outside the production possibilities curve.

d.

taxes are raised.

There are more possibilities of invention under __ of labour. *

1 point

Supply

Division

Mobility

None of the above

DISCUSS PROVINCIAL Development Plan for any PROVINCE IN SOUTH AFRICA

8 to 10 pages

The price for a good A has risen from 175 rub. to 210 rub. The demand for a good B has increased from 5400 units to 7100 units. Calculate the cross- price elasticity of demand?

The price for a good A has risen from 175 rub. to 210 rub. The demand for a good B has increased from 5400 units to 7100 units. Calculate the cross- price elasticity of demand?

Calculate your income elasticity of demand as your income increases from 10 000 to 12 000 if the price is 12, and the price is16. 

Calculate your price elasticity of demand as the price of compact discs increases from 8 to 10 if your income is 10 000, and your income is 12 000

The price for a good has risen from 675 rub. to 689 rub. The supply has increased from 3100 units to 3450 units. Calculate the price elasticity of supply?