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where, W = Wheat yield (kg/ha), F = Fertiliser (kg/ha) and L = Labour (hours/ha)
Derive an expression for the least-cost expansion path given that fertiliser costs R12 per kg and labour costs R6 per hour. [4]
If the wheat producer has a budget of R9 000 to spend on fertiliser and labour, how much of each input should he use and what is the quantity of wheat he will produce? [4]
Derive expressions for the value of marginal product (VMP) of fertiliser and labour given that wheat sells at R72 per kg.
Analyse using a supply diagram the effect of an improvement in the quality of the training car workers on the suppley of cars
You are trying to decide whether to buy stock in Company X or Company Y. Both companies need $1,000 capital investment and will earn $200 in good years (with probability 0.5) and $60 in bad years. The only difference between the companies is that Company X is planning to raise all of the $1,000 needed by issuing equity, while Company Y plans to finance $500 through equity and $500 through bonds on which 10 percent interest must be paid. Construct a table showing the expected value and standard deviation of the equity return for each of the companies. Based on this table, in which company would you buy stock? Explain your choice.
bread, a normal good:
Namibia’s small population of about 2.3 million is a curse rather than a blessing”. Use the
arguments of the neoclassical economic theory to discuss this statement.
Argentina’s inflation accelerated at the fastest pace since President Fernandez took office in 2019, prompting government to tighten its unorthodox controls. Consumer prices rose 4.2%. Consumer prices in Argentina have stayed above 3%. Double-digit inflation has been a problem. The government has relied on unorthodox tools rejecting traditional monetary options used by most countries. The recent spike, with the inflation rate running at about 40% annually, threatens to derail Argentina’s fragile economic recovery. The government ordered stricter enforcement of price controls and it would hire as many as 500 inspectors to ensure businesses are complying with regulations. Guzman asked for “more cooperation” by companies to try to reach the government’s 29% annual inflation target for the end of 2021. Economists say the rate accelerated to almost 42% in March. With the aid of a diagram, describe the traditional monetary policies that can be used to control inflation.
Argentina’s inflation accelerated at the fastest pace since President Fernandez took office in 2019, prompting government to tighten its unorthodox controls. Consumer prices rose 4.2%. Consumer prices in Argentina have stayed above 3%. The government has relied on unorthodox tools, rejecting traditional monetary options used by most countries. The recent spike, with the inflation rate running at about 40% annually, threatens to derail Argentina’s fragile economic recovery. The government ordered stricter enforcement of price controls and it would hire as many as 500 inspectors to ensure businesses are complying with regulations. Guzman asked for “more cooperation” by companies to try to reach the government’s 29% annual inflation target for the end of 2021. Economists say the rate accelerated to almost 42%. Attempting to decrease inflation may result in increasing levels of unemployment. Defend the above and explain the type of unemployment that this may result in.
Argentina’s inflation accelerated at the fastest pace since President Fernandez took office in 2019, prompting government to tighten its unorthodox controls. Consumer prices rose 4.2%. Consumer prices in Argentina have stayed above 3%. Double-digit inflation has been a problem. The government has relied on unorthodox tools, rejecting traditional monetary options used by most countries. The recent spike, with the inflation rate running at about 40% annually, threatens to derail Argentina’s fragile economic recovery. The government ordered stricter enforcement of price controls and it would hire as many as 500 inspectors to ensure businesses are complying with regulations. Guzman asked for “more cooperation” by companies to try to reach the government’s 29% annual inflation target for the end of 2021. Economists say the rate accelerated to almost 42% in March. In light of the above article, discuss some of the negative effects of inflation that Argentina may experience.
Explain the importance of marginal cost and average cost to managers.
