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Assume a wheat producing farmer engaging in selling its product under perfect competition market faces cost functions as TC= Q3 -2Q2 +8Q and Average revenue of the farmer is given as Birr 8. Having this information, A. Determine the optimal level of output and price in the short run. B. Calculate the economic profit (loss) the farmer will obtain (incur) C. What will be the minimum price level the farmer gets to continue in wheat production?
Assume a wheat producing farmer engaging in selling its product under perfect competition market faces cost functions as TC= Q3 -2Q2 +8Q and Average revenue of the farmer is given as Birr 8. Having this information, A. Determine the optimal level of output and price in the short run. B. Calculate the economic profit (loss) the farmer will obtain (incur) C. What will be the minimum price level the farmer gets to continue in wheat production?
Cash 590
Debtors 59, 443
Bank 32, 830
Amount due to directors 20,000
Inventory 208, 993
269, 026
Motor vehicles 6,760
Creditors 142, 252
Land & Buildings 64, 708
Less CURRENT LIABILITIES
CURRENT ASSETS
Fixtures and fittings 10, 700
82,168
FIXED ASSETS
Tax 8,171
203 253NET CURRENTS ASSETS 65,773
Share capital 10,000
ix.Net profit margin
NET TANGIBLE ASSETS 147,941
viii.Credit given period
Capital reserve 28,617
v.Acid test ratio
iii.Current ratio
vi.Interest cover
FINANCED BY:
i.Net gearing ratio
vii.Gross profit margin
Retained profit 109, 324
. 147, 941
iv.Credit taken period
Required
a)Using the figures provided calculate the following:
ii.Inventoryturnover period
x.Return on investment
by the exporter? [4marks]
4.List the advantages of “confirmed and irrevocable” L/C to the exporter.
payment.
3.Describe the open account method of payment. [4marks]
2.Demonstrate how each of the risks in ‘1.’ above can be minimised. [4marks]
1.In Documentary Collections terms of payment, what are the major risks faced
exchange risk. These give rise to consideration of the market, transport and
How does political factor influence Volkswagen
The amount of capital plus comprehensive income for the year less drawings is referred to as capital amount for the business,true or false
develop new topics for a seminar
ABC’s income has increased from P 20,000 to P 30,000 per month. Because of this, his consumption for fruits has increased by 20%. Compute the income elasticity and determine the type of good.
In the market of fante kenley, the supply and demand function respectively are Qs =0.25P+10 and Qd= 0.5P+100. When there is excess demand, price adjust according to the equation.
(a) Find the long run equilibrium price (that is, the price at which there is no excess demand or supply.
(b) Formulate and solve the first order differential equation given P as a function of time,t. Is this market dynamically stable or unstable.
(c). If initial price is P= 50, how close will the price be to it long run equilibrium value when t= 100.
Suppose that you are assigned a task to investigate the relationship between selling price and valuation of plots sold by a local municipality. Data was obtained for a random sample of ten plots . Plot Selling price (N$ 000) Valuation (N$ 000) 1 120 72 2 100 68 3 14072 4 150 70 515575 6 100 50 7 150 58 8 200 90 980 56 10 14570 a) Discuss the difference between correlation analysis and regression analysis. (10) b) Use the method of least squares and estimate the regression equation between selling price and valuation . (15 ) c) Provide an interpretation for the slope coefficient. (5) d) Use the estimated regression equation and make a prediction for a value of the dependent variable when the independent variable is N$ 85 000. (5) e) Calculate and interpret the coefficient of determination. ( 10) f) Calculate and interpret the correlation coefficient. (5) QUESTION 3[10]
