Economics of Enterprise Answers

Consider the following cost and revenue structure for Pristine Tea, a shop that specialises in selling green tea. Quantity Total Revenue ($) Total Cost ($) 0 0 31 1 9 35 2 18 40 3 27 46 4 36 53 5 45 61 6 54 70 7 63 80 8 72 91 9 81 103 Required: (a) Is it possible for Pristine Tea to engage in price discrimination to boost the shop’s earnings? Why or why not? (10 marks) (b) Determine the profit-maximising (or loss-minimising) levels of output AND price for Pristine Tea. Show carefully how you obtained the answers. (10 marks) (c) At the profit-maximising (or loss-minimising) level of output, explain whether Pristine Tea is productively and allocatively efficient. Support your answer with the aid of appropriate diagram(s). (15 marks)

A Newly-acquired Equipment Requires An Annual Maintenance Costs Of P10,000. If The Annual Maintenance Cost Us Increased By 20% Each Year Every Year For 10 Years, What Is The Estimated Present Worth Of The Maintenance Costs If Money Is Worth 15%?

Choose the best answer from the given alternatives & write the choice of the correct letter on the space provided. Make sure that your answer is clearly marked. Use only capital Letters.

1. If total assets increased by $20,000 during a period and total liabilities 

        Increased by $12,000 during the same period, the amount and direction 

        (Increase or decrease) of the periods change in owners’ equity is:

     A. $32,000 increase                              C. $8,000 increase

     B. $32,000 decrease                             D. $8,000 decrease

Engr. Hermo, believing that life begins at 40, decided to retire and start enjoying life at age 40. he wishes to have upon his retirement the sum of P5,000,000. on his 21stbirthday, he deposited a certain amount and increased his deposit by 15% each year until he will be 40. if the money is deposited in a super savings account which earns 15% interest compounded annually. How much was his initial deposit?

a.      If the wealth of the stockholder is decreasing ever since he hired the new manager, using EVA rule of thumb explain what would be the value of EVA and what is its economic interpretation. 

"A fundamental academic subject which seems to understand and analyse the problems of business decision making

Can a two-person game, in which each player has two actions, has infinitely many mixed strategy Nash equilibria? If yes, illustrate a game which has such a Nash equilibrium. If no, explain your argument.

Jame detail confectionery items newspaper magazines and secret and he is milk bad thing is business is not living 3 thought of selling out fires and role as well to test his idea he decides to make a total of rule and price per day to finance this idea is allocated to fix per day cost of Dollar 19 to 12 for both role and files is cost of Dollar 2.30 and is per cost of Dollar 2.50 to produce they will sell at dollar 4.70 parole and Dollar 5.20 per pie so does James make a profit or loss when 50rolls and 50pies are produced and sold one particular day??

At what point should a firm stop producing with regards to economies of scale , constant return to scale and diseconomics of scale . Give a situational example in this regard

Due to the COVID-19, the price of hand-sanitizer increases from 150 taka to 250 taka. In response, the

quantity demanded declines from 20 units to 15 units.

(a) Calculate the price elasticity of demand. (5)

(b) Explain if the demand is elastic or inelastic. Based on the elasticity, what change (increase,

decrease, or keep it the same) in price the seller can do to maximize his total revenue? Explain your

answer.