Other Economics Answers

Critical thinking – 

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Evidence of analysis of and reasoning about underlying issues most of the time (80%)

Communication

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Accounting information is used by many different stakeholders. The main use of accounting information for investors, lenders and suppliers would be to determine if they will be paid on the due date as arranged with the entity. There however also other users of accounting information. List two other users of accounting information and list one reason each why these users will be interested in the accounting information

Sala joined the company 7 years ago.

 She is entitled to 13 weeks of long service leave after completing 10 years of service with the company.

 Her current salary is $50,000. Salaries are expected to grow by 2% for the next 5 years.

 Sala is 80% certain that she will not leave the company in the next 5 years.

 High quality bonds with a 5 year term have an interest rate of 6% and high quality bonds with a 3 year term have an interest rate of 4%

Required:

a) Calculate the company’s long service leave liability relating to Sala.

b) Prepare all journal entries relating to long service leave, assuming there is already a balance of $4,000 in the account.

Use an excel sheet to post your answer.

1. A company has a linear total cost function and has determined that over the next three months

it can produce 2,000 units at a total cost of $700,000. This same manufacturer can produce 3,000

units at a total cost of $960,000. The units sell for $225 each.

a) Determine the revenue, cost, and profit functions using q for a number unit.

b) What is the fixed cost?

c) What is the marginal cost?

d) Find the break-even quantity.

e) What is the break-even dollar volume of sales.

In a perfect market structure, if a given firm faces average variable cost (AVC); AVC = 1/3Q²- 9/2Q² + 20

A. Determine the level of output at the minimum level AVC

B. what is the minimum price the firm willing to supply?

c. What is the loss of the firm at the minimum price level if the total fixed cost Is 50blrr?

D. If the price level Is 3.5blrr does the firm shut down the business or continue production?

Mary sells T-shirts in a stall at the shopping centre. When she charges E15 per T-shirt she does not sell anything, however she noticed that every time she reduces the selling prince by El , sells 15 more t-shirts per hour. A T-shirt cost E4.50 to make and she is charged E130 a day for her stall. Mary opens her stall from     to 8pm

a.  Write the equation to calculate the maximum profit

b. Using the equation write in a table the price and profit for price ranging from E 15 to E-3

c.  Plot a graph and draw a diagram to represent the profit

d. What is the maximum possible profit? What should be the selling price to achieve it?

The production function of given firm Is given by Q =200\sqrtLK  and the.

associated cost function is given by 2L + 5K = 1000

A. Calculate the level of labor and capital input at the optimum level of production

B. Calculate the MRTS_L,_K and MRTS_k, _L

c. What is the level of output at the least cost combination of labor and capital inputs?

Given the total cost function; Q = 0.1Q³- 3Q²+ 60Q + 5400

A. Calculate each average cost function and show it graphically

B. What is the level output at the minimum level of average variable cost?

c. What is the level of output a1 the minimum point of average total cost and

what is the trend or average variable cost at this point?

D. What is the fixed cost and what does it mean?