Economics of Enterprise Answers

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?

Kate wants to start a small catering business in her area. she has already established the necessary skills and abilities as well as the required resources to start the new venture. Which is the next step in the entrepreneurial process that she needs to follow?

Demand for hand sanitizer is surging around the globe as the new coronavirus spreads, prompting retailers to ration supplies and online vendors to hike prices. Sales of hand sanitizers and similar products have swelled across several international markets since the COVID-19 outbreak began in January. The virus, which originated in China, has now spread to more than 60 countries. According to data published Tuesday by market research firm Kantar, U.K. hand sanitizer sales saw a year-on-year increase of 255% in February. Meanwhile, British shoppers were buying 7% more liquid hand soaps and spent 10% more on household cleaners compared to February 2019. (Source: CNBC, 3rd March 2020

ii. Due to high demand of hand sanitizer, it will lead to increases of price by producers. Based on your opinion, what should a government do to control the price of hand sanitizer to keep hike during the pandemic.

Demand for hand sanitizer is surging around the globe as the new coronavirus spreads, prompting retailers to ration supplies and online vendors to hike prices. Sales of hand sanitizers and similar products have swelled across several international markets since the COVID-19 outbreak began in January. The virus, which originated in China, has now spread to more than 60 countries. According to data published Tuesday by market research firm Kantar, U.K. hand sanitizer sales saw a year-on-year increase of 255% in February. Meanwhile, British shoppers were buying 7% more liquid hand soaps and spent 10% more on household cleaners compared to February 2019. (Source: CNBC, 3rd March 2020

ii. Due to high demand of hand sanitizer, it will lead to increases of price by producers. Based on your opinion, what should a government do to control the price of hand sanitizer to keep hike during the pandemic.

Given the demand function. P=16𝑒−0.02𝑄

• Determine the quantity and price at which total revenue will be maximized.

• test the second-order condition.

Differentiate the following logarithmic functions and show that 𝑦=𝑙𝑛(𝑥+5)2≠[ln⁡(𝑥+5)]2

The value of the rice grows according to the function, 𝑉=𝑘𝑒2√𝑡, how long should the dealer store the rice.

Has the bank of Canada done anything to influence the supply of money?  Have interest rates been adjusted for this current climate?  (Application - 2 marks)