Economics of Enterprise Answers

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The Mellow Cake corporation is facing a downward sloping demand curve for its Mellow Cakes deserts. In the table below you are provided with information on the firm’s marginal revenues and total costs. 

(Note: the Marginal revenues at a level Q in the table are the revenues at level Q+1 minus the revenues at level Q.)

Quantity Produced (Q) Marginal Revenue (Q) Total Cost (Q)

1 40 1

2 35 4

3 30 9

4 25 15

5 20 22

6 15 42

7 10 67

8 5 97

9 0 137

10 -5 187

1. Is the firm in this example a price taking firm? Explain why or why not. (5 pts.)

2. What is the firm’s optimal level of output? Explain why it is optimal. (5 pts.)

A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount?

Does the gravity model predict or explain Namibian exports?

Instructions

 Discuss the above assignment question

 Length: not more than 5 pages

 Use 12 pt font size

 1.5 line spacing

 Your paper could have the following sections (just indicative)

o An introduction/background

o Namibia’s trade position – specific goods/services and trade partners

o Discussion

o Conclusion

Amandla Ltd is an electronics manufacturer based in the Vaal Area in the Gauteng province in South Africa. Amandla Ltd has partnered with an international company to export its products and as a result will be expanding its operations and its product portfolio. Based on this expansion, the company’s management has decided to establish a new business function dedicated to procurement. 

Amandla Ltd has requested your Procurement Consultancy to provide a memo to inform them on the following issues so at to inform their decision making:

The procurement process

The role and importance of procurement

Centralisation vs Decentralisation

Outsourcing vs In-sourcing

The role of e-Commerce and 4IR in the procurement

Nowadays it even harder to get a job with a fake certificate?

Name the factor of production depicted in the cartoon?

Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest.

On-the-job experience typically enhances a person’s productivity in that particular job. If theperson’s salary increases to reflect increased experience but the additional experience has no relevance for other jobs, does this higher salary reflect an increase in opportunity cost or in economic rent?

You are the Accounting Manager for a company.You are analyzing your AR and you realize that the average collection period is lengthening every month, and this trend started 8 months ago.What specific action or steps would you take to (1) identify items that are potentially causing the collection time to increase and (2) reverse the trend and reduce the average collection time.

(1) What is DSO and how is it calculated?

(2) What is AR Turnover and how is it calculated?

(3) Identify ONE action/step you would take to identify the potential items causing the increase in your average collection period and 4 actions/steps you would take to reduce the collection time.

The company produces alkaline batteries for two groups of consumers (poor and rich) whose inverse demand functions are below. MC=40. How many times should the number of poor consumers be greater than the number of rich consumers to justify the focus on the entire consumer surplus of the poor group?

P1 = 160 - 20Q;

P2 = 200 - 16Q