Economics of Enterprise Answers

1. Identify the type of market structure which you think operates in your selected industry. For example, is it ‘perfectly competitive’, ‘monopoly’, ‘monopolistic’ or ‘oligopolistic’. You should justify your answer by explaining how closely the industry operates in practice to the economic model of that market structure. Of KFC

       (9 marks)

The quantity of Item X that is sold to customer Y on September 11th should be an attribute in which table?

A. Sale

B. Customer

C. Sales–inventory

D. Inventory

The list price of inventory item 3399776 should be an attribute in which table?

A. Sales

B. Inventory

C. Supplier

D. Sales–inventory

If a company sometimes only sold parts, sometimes only performed services, and sometimes did both, the minimum cardinalities associated with the inventory table would be

A. zero.

B. one.

C. many.

D. None of these are correct

For a company that rents out construction equipment to building contractors, the rent equipment event is linked to? Check all that apply.

A. at most one return event.

B. at most one receive cash event.

C. at least one receive cash event.

D. at least one return event.

how can policy makers (government) use the neoclassical model of production and consumption to inform policy decisions in the economy? Discuss by using an example

the neoclassical model of production and consumption as well as some instances where the model suggests government intervention can be welfare improving. Which approach do think is more important for policy formulation in South Africa, and why? 

Is electricity provision in South Africa a public good?

How has the competition commission promoted economic efficiency?

Due to substantial increases in prices in Country A, the real income level of the population in Country A decreases. Show on a diagram how the decrease in the income level in Country A will affect the demand for meat, which is a normal good. Also indicate how the equilibrium price and equilibrium quantity of meat will change in Country A. The direction of any changes should be clearly indicated using arrows. 

1.Given the following demand equation P = 60- 2Q and the cost equation TC(q) = 100+3Q2

For the market of shoes

a.If the enterprises in this market take advantages of perfectly competitive market, find the equilibrium outputs and price.

b.If the seller in this market takes the advantages of pure monopoly, find the equilibrium outputs and price.

c.If the seller in this market takes the advantages of oligopolistic market, find the equilibrium outputs and price.

Explain how the South African Reserve Bank can use the open-market policy to stimulate the economy

In each of the following examples, first calculate the PED and then decide if the PED is elastic,

inelastic, perfectly elastic, perfectly inelastic or unitary elastic.

a. The price of a product falls from $8 to $6, causing demand to extend from 10,000 to

12,500.

b. Demand contracts from 500 to 400 when price rises from $40 to $42.

c. Demand extends from 2,000 to 2,800 when price falls from $20 to $18.

d. Price rises from $15 to $30 but demand stays unchanged at 5,000.

e. An increase in price from $80 to $90 and as a consequence, a decrease in quantity

demanded from 400 to 300.