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Mr Chan lives with his parents in Aberdeen. He owns a flat in causeway bay. The order of preference of ways for him to use his flats as follow
1st choice: run a restaurant. 2nd choice: rent it out. 3rd choice: live in it. Explain how the cost of using the flat to run the restaurant maybe affected if, a. The market rental rate sharply increases. b. His parents health deteriorates and there is an increasing need for him to take care of them. c. He has employed a cook at a salary lower than the market rate
Mr. Kamal is an owner of the communication center at Y junction and uses four word processors and two typewriters to produce reports. The marginal product of a typewriter is 500 pages per day, and the marginal product of a word processor is 5000 pages per day. The rental price of a typewriter is Rs.1 per day, whereas the rental price of a word processor is Rs.50 per day. Is Mr. Kamal utilizing type writers and word processors in a cost-minimizing manner? Which service process is more profitable? Type writer or word processing? Justify your answer
What level of output should the firm produce to maximize profit?
Suppose the firm’s fixed cost is known to be birr 3, will the firm be earning positive, negative or zero profit? What is that profit?.
a) In light of the above, you are required to review literature (both theoretical and empirical) on the impact ofinternational trade on economic growth in South Africa.
What level of output should the firm produce to maximize profit?
Suppose the firm’s fixed cost is known to be birr 3, will the firm be earning positive, negative or zero profit? What is that profit?.
7. Given that TC=2000+100Q-10Q2+Q3 where Q is level of output and maximum level of MP is 15 units, answer the following question based on the given information.
A. Determine the TFC and TVC functions
B. Find the AVC,AFC,AC and MC functions
C. Calculate the level of output at which AVC reaches its minimum
D. Calculate the level of output at which AC reaches minimum
E. Draw the relationship between production and cost curves
F. What relationship do you observe between production and cost curves? Why is this so?
G. At 5 units AVC,APL is 10,what is the maximum APL?
Select and name a market of any well-known product (left upon your imagination), draw its market diagram, state and name four different factors that might cause changes, showing the changes in equilibrium price and quantity.
Describe the theory of second best?
How is appoint of the contract curve for production interpreted? Is any point inside the PPF efficient?
Using Walrus’s law, graphically show the equilibrium in labor market?
