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The utility function for a consumer utility is U=30Q11/2Q21/2 . If the price per unit of Q1 is Kshs 10 and Kshs 5per unit of Q2, determine quantities Q1 and Q2 that the consumer should have to maximize utility if the consumer budgeted Kshs 350
. You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psychological. How can you compare the benefits to the costs?
Which of the four database requirements would be violated if this data stream were placed in a table? If you have insufficient information to assess whether the requirement has been violated, discuss the additional data that you would need.
The dawn reported (jan 17, 2022) that motorway ridership declined after a toll increases.
" There were nearly four million less riders in december 2021, the first full month after the price of a toll tax was increased 25% to Rs 125/10km, than in the previous month November 2021 in which nearly 40 million riders were recorded by the motorway Authority"
a) use these data to estimate the price elasticity of demand for motorway riders.
b) According to your estimate, what happens to the NHA's (National Highway Authority) revenue when the toll tax rises, graphically show the total revenue and give your opinion about authority decision?
c) do you think that your estimate of the elasticity is reliable?
A local TV repairs shop uses 36,000 units of a part each year (A maximum consumption of 100 units per working day). It costs Rs. 20 to place and receive an order. The shop orders in lots of 400 units. It cost Rs. 4 to carry one unit per year of inventory.
Requirements:
(1) Calculate total annual ordering cost
(2) Calculate total annual carrying cost
(3) Calculate total annual inventory cost
(4) Calculate the Economic Order Quantity
(5) Calculate the total annual cost inventory cost using EOQ inventory Policy
(6) How much save using EOQ
(7) Compute ordering point assuming the lead time is 3 days
Steve can bake either 4 loaves of bread or 12 dozen cookies a day. Sarah can bake either
4 loaves of bread or 8 dozen cookies a day.
a. Show the production possibilities frontiers for Steve and Sarah
b. Suppose trade is not allowed between Steve and Sarah and as a result, both Steve and
Sarah spent half a day (12 hours) baking bread and the other half a day baking cookie.
Show both the production and consumption bundles for Steve and Sarah on their
respective PPFs, when trade is not allowed between Steve and Sarah.
c. Show, using production possibility frontiers in (a), that Steve and Sarah would be
better off specializing in their baking activities and then trading, rather than baking
only for themselves. Be specific and state the production and consumption bundles
with trade.
If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the optimal sale price?Hint: apply the mark-up rule
A firm has the following revenue and cost functions.
TR = 120 Q – Q2
TC = 1/2 Q2 +30 Q + 10
Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)
Explain why the Marginal Revenue Product of Labour curve for a firm that competes for labour in the factor market is also the firm's demand curve for labour
Discuss the relevance of marginal revenue productivity theory in wage determination within contemporary, real-world labour markets.
