Economics of Enterprise Answers

William Howe must decide whether to start a business renting beach umbrellas at an ocean resort during June, July and August of next summer. He believes he can rent each umbrella to vacationers at $5 a day, and he intends to lease 50 umbrellas for the three- month period for$3,000. To operate this business, he does not have to hire anyone (but himself), and he has no expenses other than the leasing costs and a fee of $3,000 per month to rent the business location. Howe is a college student, and if he did not operate this business, he could earn $4,000 for the Three- month period doing construction work.

1.      Consider in perfectly competitive market the following demand and supply equations for sugar:

Qd =1000-1000p        where Q d is quantity demanded and Qs is quantity supplied. Qs=800+ 1000p

Where P is the price of sugar per pound and Q is thousands of pounds of sugar.

a.  What are the equilibrium price and quantity for sugar? (1point)

b.  Suppose that the government wishes to subsidize sugar production by placing a floor on sugar prices of $0.20 per pound. What would be the relationship between the quantity supplied and quantity demand for sugar?

C. Identify market problem specifically at prices 0.2 per pound and what will be scientific recommendation you suggest to solve the identified market problem?

In the Rule of Thumb, Profit Maximization and Loss Minimization (MR = MC), when AVC < P <AC means the firm is incurring losses. What would be his decision?

Select three local businesses (one large and two small) and play the role of "mystery shopper". How easy was it to do business with each company? How would you rate their service, quality and convenience? Were sales people helpful and friendly? Did they handle transactions professionally and courteously? How would you rate the business' appearance? How would you describe each company's competitive advantage? What future do you predict for each company? Prepare a brief report on the findings and conclusions. 

Use APA Style, add narrative to your paper, I also want to know about the experience of being a mystery agent. 

What is the difference between the Consumer Price Index (CPI) and the Gross Domestic Product (GDP) Deflator?

What is the purpose of these? Is the official inflation rate always representative of the actual price changes? What is the reason for this

Briefly discuss the two ways in which economies of scale causes international trade

Part II: Solve the following problem

1.      Consider in perfectly competitive market the following demand and supply equations for sugar:

Qd =1000-1000p        where Q d is quantity demanded and Qs is quantity supplied. Qs=800+ 1000p

Where P is the price of sugar per pound and Q is thousands of pounds of sugar.

a.  What are the equilibrium price and quantity for sugar? (1point)

b.  Suppose that the government wishes to subsidize sugar production by placing a floor on sugar prices of $0.20 per pound. What would be the relationship between the quantity supplied and quantity demand for sugar?

C. Identify market problem specifically at prices 0.2 per pound and what will be scientific recommendation you suggest to solve the identified market problem?

Comparing mediation and arbitration which method do you think is best for setting labor disputes

Discuss the role of Trade Unions. To what extend does the Participation of Labour Unions affect the South African Labour Market and the South African Economy 

Evaluate the decision to distinguish between developed and developing nations in the Paris Agreement from the perspective of substantive and procedural judgements of fairness. Be sure to define both judgements of fairness in your answer.