Economics of Enterprise Answers

Apply this arguments (that economies of scale can cause trade) to Namibia.

Equilibrium point determine, equilibrium

If demand function is given as the following: 

Qz = 230 -2.75 Pz + 0.5 I + 1.2 Pm + 0.6A 

Where Qz is quantity of Good z sold, Pz is price of Good z per unit, I is per capita income, Pm is price of competitor and A is the amount of advertising spent. 

Current values:  Pz= RM 55 I= RM 9000    Pm= RM 50    A =RM 12,000

a)   Should the firm consider giving a price discount in order to increase total revenue?

If demand function is given as the following: 

Qz = 230 -2.75 Pz + 0.5 I + 1.2 Pm + 0.6A 

Where Qz is quantity of Good z sold, Pz is price of Good z per unit, I is per capita income, Pm is price of competitor and A is the amount of advertising spent. 

Current values:  Pz= RM 55 I= RM 9000    Pm= RM 50    A =RM 12,000

Please Determine the total revenue maximizing price and quantity

If demand function is given as the following: 

Qz = 230 -2.75 Pz + 0.5 I + 1.2 Pm + 0.6A 

Where Qz is quantity of Good z sold, Pz is price of Good z per unit, I is per capita income, Pm is price of competitor and A is the amount of advertising spent. 

Current values:  Pz= RM 55 I= RM 9000    Pm= RM 50     A =RM 12,000

a) Calculate price elasticity of demand for Good z.

return to scale law is applicable to what

Determine the benefit cost ratio for mango farm at rotation age of 7years given the following

1. At the rotation age, the expected yield is 221 cubic meter per hectare

2. Stumpage price is $100/m³

3. Total land area is 250 hectares

4. Plantation establishment cost which is assumed to be incurred at yield 2021 is $3,500 per hectare

5. Weeding cost at year 1 is $200 per hectare

6. Fertilizing cost incurred at year 2 is $200 per hectare per year

7. Interest rate is assumed to be 18%

Engineer Srinivasa Ramanuja took a Php. 354702 job to install a private compaction machine but failed to comply with the work on time. Provisions on the contract stated that the following:

-       For the first 13 days of delay, the contractor is obligated to pay a daily penalty equivalent to 0.02 of 1.5% per day.

-       For the second 13 days of delay, the contractor is obliged to pay a daily penalty equivalent to 0.47 of 1.5% per day.

-       For the consequent days, the contractor is obliged to pay 0.66 of 1.5% per day.

Explain how the fiscal policy can be used to influence government objectives

If demand function is given as the following: 

Qz = 230 -2.75 Pz + 0.5 I + 1.2 Pm + 0.6A 

Where Qz is quantity of Good z sold, Pz is price of Good z per unit, I is per capita income, Pm is price of competitor and A is the amount of advertising spent. 

Current values:  Pz= RM 55 I= RM 9000    Pm= RM 50     A =RM 12,000

Please Determine the total revenue maximizing price and quantity