Economics of Enterprise Answers

Consider the two period Repeated Prisoner's Dilemma Game where each player is interested in the SUM of the payoffs she gets in each period. Players see the outcome after the play in each period. (The period payoffs are 10,5,1,0.)

(i) Write out this game in its strategic form.

(ii) Find all Nash equilibria and all Subgame Perfect Nash Equilibria.

3.What type of sales force behavior would be encouraged by paying the salesforce a substantial salary with a small commission?

A.rapidly increasing sales in a new market

B.maintaining existing customers and providing customer service.

C.obtaining new customer

D.encouraging customers to purchase large quantities of product

1. Block's sells 500 bottles of perfume a month when the price is $7. A huge increase in resource costs causes price to rise to $9 and Block's only manages to sell 460 bottles of perfume. The price elasticity of demand is:

The Hong Kong government announced on February 2021 a 120 billion HKD (15.5 billion USD) stimulus in its budget to support businesses and individuals struggling from the global pandemic. a. How does this fiscal policy action affect the Hong Kong economy? Use an AA-DD diagram to illustrate the effect. (5 points) b. Assume the Hong Kong Monetary Authority (HKMA) is committed to maintain a fixed exchange rate between the Hong Kong dollar (HKD) and the U.S. dollar (USD). Use an AA-DD diagram to illustrate the effects of HKMA's action in conjunction with this fiscal expansion? (5 points)

In a country such as South Africa, the most important characteristic of the business world in which it operates includes ___________________________.

1.     the freedom of individuals to establish any business of their choice

2.     the state owning and controlling the community’s resources or factors of production

3.     the limited choice of products and services that the state offers

4.     the allocation of resources which are not affected by free markets 

majestic aircraft carrier is a manufacturer of single engine high performance turboprop aircraft. MAC is considering purchasing composite wing fixtures for the assembly of its signature aircraft. The cost of the assembly system is $3 million with life expectancy of 10 years, annual operating cost of $200000 with zero salvage value. MAC anticipates a stream of $1000000 in revenue per year for 10 years from this project. Assuming MAC uses a MARR of 10 percent, and e=14% is this investment economically justified ? calculate the ERR.

§The Chocolate Emporium in Nottingham makes and sells luxury chocolates.

If the price of a box of chocolates increases from £6.99 to £7.49 and demand falls from 862 units per week to 784 units what is the priced elasticity of demand (P.E.D.) for chocolates

distinguish between investment income and foreign direct investment

your company needs to purchase a dump truck and has narrowed the selection down to two alternatives. the 1st alternative is to purchase a new dump truck for $65,000. at the end of the seventh year the salvage value of the new dump truck is estimated to be $15,000. the 2nd alternative is to purchase a used dump truck for $50,000. at the end of 4th year the salavage of the dump truck is estimated to be $5,000. the annual profits, revenues less operation costs, are $17,000 per year for either truck. using a MARR of 18% and twenty-eight years study period, calculate the net present value for each of the dump trucka. which truck should your company purchase?

Technology forms an important part of almost any business in the modern world. During entrepreneurial process, many businesses will need to determine if the technology they require for their business exist and if they can get access to such technology. During which phase of the entrepreneurial process will this decision be made?