1. A U.S. firm opens a factory that produces camping equipment in Albania, by itself
a. this increases U.S. net foreign investment and decreases Albanian net foreign investment.
b. this decreases U.S. net foreign investment and increases Albanian net foreign investment.
c. increases only U.S. net foreign investment.
d. increases only Albanian net foreign investment.
1. A Swiss firm opens a watch factory in the United States.
a. This is Swiss foreign direct investment and by itself increases Swiss net foreign investment.
b. This is Swiss foreign direct investment and by itself decreases Swiss net foreign investment.
c. This is Swiss foreign portfolio investment and by itself increases Swiss net foreign investment.
d. This is Swiss foreign portfolio investment and by itself decreases Swiss net foreign investment.
Suppose a college decide to raise the tuition fee from Rs.3, 000 per month to Rs.4, 000 of MBA level students. The number of students getting admission is 500. The price elasticity of demand for the students is 0.2.
Find out the number of students getting admission after increase in tuition fee.
Find out the total revenue before and after the increase in tuition fee.
Explain whether the increase in tuition fee is wise decision or not on the basis of total revenue.
a. Construct an edge worth box diagram and show how production, efficiency and
equilibrium is achieved in an economy. (10Marks)
Your community newspaper, The Xpress, has fixed production costs of K70 per edition, and marginal printing and distribution costs of 40n/copy. The Xpress sells for 50n/copy.
a) Write down the associated cost, revenue, and profit functions.
b) What profit (or loss) results from the sale of 500 copies of The Xpress?
c) How many copies should be sold in order to break even?