Economics of Enterprise Answers

Compute the point advertising elasticity of demand (%ΔQX/%ΔA) of a medical supplier if the business spent P10,000 from the previous budget of P8,000 and the sales increased from P100,000 to P200,000. Interpret your answer.

Let demand equal: P = 10 – 0.2Qd. Supply is denoted as: P = 2 + 0.2Qs. Assume that Qd is quantity demanded and Qs is quantity supplied.

1. Suppose that each firm in a perfectly competitive market has a short-run total cost of TC = 75 + 500Q – 5Q2 + 0.5Q3, where MC = 500 – 10Q + 1.5Q2.

1. Calculate the output that minimizes the firm’s AVC.
2. What is the firm’s shutdown price?

In the light of prevalence of these practices, is resume inflation and deception okay? Is it okay up to a point as long as distortion does not get too big? Is a small amount of puffery on one's resume just expected as part of the game of getting a job and getting ahead? What would the controversial approach to business ethics say?

Is it proper for John Q. Expert to accept the offer? Why? Why not?

Is it appropriate for Councilman Lotsoland to offer the "all expenses paid" weekend? What factors make it acceptable or unacceptable?

What factors must John Q. Expert consider in his decision of whether or not to accept the complimentary weekend? Are there any conflicts of interest present that ought to be considered?

1.   If the minimum wage were increased to ₱75 per hour, how many of your classmates do you think would look for a job? How many jobs do you expect they would find? How is this an example of a price floor?

What would happen to the demand curve for movie tickets if the price of DVD movie rentals increased by ₱20 each?