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a) a farmer sells cabbages for N$ 10 per head. The farmers variable costs are N$ 2.50 per head and total cost of 100 heads is N$1450.
I) how many cabbages must the manufacturer produce each month to break even?
II) how many cabbages should be produced to make profit
b) Total cost of producing carrot is C(X)=3600+100x+2x^2 and the total revenue function R(x)= 500x-2x^2
I) find the number of kg that maximizes profit
II) find maximum profit
One of South Africa’s cellphone operators, Cell C, is changing their overall business strategy. The focus is now on providing customers with “affordable and accessible services." To do this they need your economic expertise.
They know that when price for premium services increases from R2/minute to R2.2/minute the demand for their services falls from 12 customers to 10 customers.
a. Using the point formula calculate the price elasticity of demand.
A firm wants to minimize cost when Q=160=2√KL ;r=4 k=2
find K and L
Cups of coffee and donuts are complements. Both have inelastic demand. A hurricane
destroys half the coffee bean crop. Use appropriately labeled diagrams to answer the
following questions.
a. What happens to the price of coffee beans?
b. What happens to the price of a cup of coffee? What happens to total expenditure on cups of
coffee?
c. What happens to the price of donuts? What happens to total expenditure on donuts?
Suppose you will open a new business with choices as follows:
1. Open a compute shop near a school where there are many other computer
shops.
2. Start the first and only Barbershop service in your neighborhood
3. Open a bike accessories store in your area that has only 2 other bike
accessories stores.
4. Create a unique clothing line that targets Gen Z.
Which business would you open? The factors that influence your decisions
are characteristics that economists use to describe the level of
competition in the market.
Give at least 3 reasons to justify your selection using what you’ve learned
about market structure.
The mesa Redbirds football team plays in a stadium with seating capacity of 80,000. However, during the past season, attendance averaged only 50,000. The average ticket price was $30. If the price elasticity is -4, what would the team have to charge in order to fill the stadium?If the price were to be decreased to $27 and the average attendance increased to 60,000, what is the price elasticity?
Assembly chair 3,desks 5,table 7, hours available 2,400 shipping chairs 3,desks 2 table 4 hours available 1500.demand potential chair 360 desks 300,tables 100 profit chair $15 desks $24 tables $18.
What would happen in case the company decides that each product must make up at 25% of the total unit sold. What is the new level of profits?Show working.
A firm has a Cobb Douglas production function given as
q=AL
α K β
a.
Solve for the factor demand functions
b.
If the firms’ competitive output price is p find the wage rate
c.
What is the share of the firms revenue paid to labour and
capital?
d.
If α =0.6, β =0.2 and A=1 find the LR labour and capital
demand curve equations
