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Overlappings between SACU, SADC and AfCFTA could pose a problem to Namibia. Briefly discuss the possible problems that could result from such overlapping membership.
Distinguish between the three regional groupings, SACU, SADC and AfCFTA
Farmers keeps 1000 Jersey cows and each produces 20 litres of milk that is sold at R5.00 per litre.About 100 litres consumed at the farmer’s home while 1000 litres were donated to orphanage. About 30 cows were sold at M5000.00 each while 15 cows were donated to the farm at M4950.00 for each cow. About 200 litres were stolen by two notorious farm workers.
About 10 000kg of grain was bought from farm at M500.00 per tonne and used for supplementary feeding. Milkers under the supervision of chief milker charged the rate of M2.00 per cow. Veterinary nurse charged M3000.00 for her services and drugs. About 5000 packaging bottles of 5 litre size were bought and NOT ALL were used and each cost M2.00. The marketing costs were 10% of the value of milks sales and 5% of the value of cow sales.
From the above information;
1. Calculate the gross income for the enterprise.
2. Calculate gross margin for the enterprise.
Country A is contemplating on imposing an export subsidy to encourage its businesses to export more. Discuss the effect of such an export subsidy.
If there price of apples is R5 each and the price of Orange is R10 each? Explain what the absolute and relative prices of these fruits are
A firm’s demand curve in period 1 is Q=25 - P. Fixed costs are 20 and marginal costs per unit are 5.
Assume a monopolistic firm with a constant marginal cost (MC). The firm's demand schedule is given by table 1 below. Calculate the firm’s total revenue. Average revenue and marginal cost.
3 300 5 250
8 220
9 200
13 180 15 160 19 140 24 100 30 60
1.1 Find the firm's total revenue schedule, entering the data into the table where indicated. (10) 1.2 Use these data to determine
1.3 Assuming a constant marginal of R40, what output level and price will maximize the firm's profit? (5)
Question 2
Price stability is one of the main macroeconomic objectives hence monetary authorities pursue monetary policy to Suppose that you are a member of the Monetary Policy Committee of the SA Reserve Bank. The economy is experiencing a sharp increase in inflation.
2.1 What are the options for the SARB, what response do you recommend and why? [hint: tools of monetary policy] (15)
2.2 Despite its success, monetary policy has certain limitations and faces real-world complications.
Namibia import most of its goods, and to encourage local production it can levy a tariff on imports. Discuss the effects of a tariff on an importing country such as Namibia.
The purchased and installation costs of some pieces of equipment are given as a function of weight rather than capacity. An example of this is the installed costs of large tanks. The 1990 cost for an installed aluminum tank weighing 450,000 kg was $640,000. For a size range from 90,000 to 450,000 kg, the installed cost-weight exponent for aluminum tanks is 0.93. If an aluminum tank weighing 300,000 lb is required, what is the capital investment needed in 2000?
The purchased-equipment cost for a plant which produces pentaerythritol (solidfuelprocessing plant) is $300,000. The plant is to be an addition to an existing formaldehyde plant.
The major part of the building cost will be for indoor construction, and the contractor’s fee will
be 7 percent of the direct plant cost. All other costs are close to the average values found for
typical chemical plants. On the basis of this information, estimate the following: (a) The total
direct plant cost. (b) The fixed-capital investment. (c) The total capital investment.
