Economics of Enterprise Answers

Ben makes ice, which he sells to restaurants and at petrol stations. He has one freezer, which is all the capital he owns, and he has one person working for him. When an extreme heatwave hits, the demand for ice increases substantially and Ben has to supply more ice. Initially, Ben does not have the means to buy another freezer and rather employs two more people. What will be considered the "long run" for Ben in his ice-making business?

A. when he starts making a profit

B. when he can buy another freezer

C. when the heatwave is over

D. when he has employed the two extra people

Explain “Before economic growth, there were too few goods, after growth, there is too little time.

Show that the test-taking the overall significance of regression model using ANOVA table to be expressed as 𝑭=R2/𝒌−𝟏⁄(𝟏−𝑹𝟐)𝒏−𝒌

Qz = 4500- 1/8 Pz + 1/5 Pa – 1/9 Pb + 2Y

According to theories, explain the two main reasons why the law of demand is

always valid?

A firm’s demand function for good Z is estimated as follows:

Qz = 4500- 1/8 Pz + 1/5 Pa – 1/9 Pb + 2Y

Where:

Pz is the price of good z,

Pa is the price of good a,

Pb is the price of good b, and

Y is income.

(i) Justify whether the law of demand is valid here.

[5 marks]

(ii) According to theories, explain the two main reasons why the law of demand is always valid?

[5 marks]

(iii) Is good Z a normal good?

[5 marks]

(iv) Explain whether goods a and b are related to good z.

A firm’s demand function for good Z is estimated as follows:

Qz = 4500- 1/8 Pz + 1/5 Pa – 1/9 Pb + 2Y

Where:

Pz is the price of good z,

Pa is the price of good a,

Pb is the price of good b, and

Y is income.

(i) Justify whether the law of demand is valid here.

What do you think caused the large increase in the price of coffee in 1997? Explain your answer. 

The price of rubber which is used to produce tyres reduces. 

Select an existing motor carrier company operating in South Africa and answer the following. 

1. Describe the company in light of the following:

- What sector do they serve?

- The type of market structure they are operating in.

(15 marks) please provide intext reference as well as references.