Economics Answers

Explain the association of the following diagram (hints: the association has directions; from sales order to customers, and from customers to sales orders)?

What is segregation of duties and why internal controls need segregation of duties?

Explain the association of the following diagram (hints: the association has directions; from sales order to customers, and from customers to sales orders)?

What is segregation of duties and why internal controls need segregation of duties?

Explain the association of the following diagram (hints: the association has directions; from sales order to customers, and from customers to sales orders)?

What is segregation of duties and why internal controls need segregation of duties?

Explain the association of the following diagram (hints: the association has directions; from sales order to customers, and from customers to sales orders)?

What is segregation of duties and why internal controls need segregation of duties?

Q.1) Fresh Food has recently carried out a survey of the demand for their seasonal fruits. They observed the following

outcomes over the last seven months:

  Quantity Sold

  8500

  4700

  5800

  7400

  6200

  7300

  5600

Price Advertising

$ 2 $ 2,800 $ 5 $ 200 $ 3 $ 400 $ 2 $ 500 $ 5 $ 3,200 $ 3 $ 1,800 $ 4 $ 900

            Regression (Equation)

QSold = 8536.213882 - 835.7223514 Price + 0.592228496 Advertising

A. Estimate sales when the price is $50 and advertising is $100,000, stating any assumption that you need to make.

B. If the firm charges $50 and cost per unit is $30 but increases advertising to $110,000, what conclusions can you derive in terms of revenues and profits?

Q

For each of the following production functions, determine whether returns to scale are decreasing, constant, or increasing,

a. Q = 2K + 3L + KL

b. Q = 20K^0.6 L^0.5

c. Q = 100 + 3K + 2L

d. Q = 5K^0.459 L^0.541

e. Q = 5K^0.37 L^0.56

f. Q = K/L

The marginal product of labour function for International Trading Inc. is given by the equation

MP_L = 10 K^0.5/ L^0.5

Currently, the firm is using units of capital and 121 units of labour. Given the very specialized nature of the capital equipment, it takes six to nine months to increase the capital stock, but the rate of labour input can be varied daily. If the price of labour is $10 per unit and the price of output is $2 per unit, is the firm operating efficiently in the short run? If not, explain why, and determine the optimal rate of labour input.

Derrive marginal value product and average value product equation using the production function Y=2X+16X2-0.4X3

1. Use the production function Q = 10K^0.5L^0.6 to complete the following production table.

Rate of Capital Input (K)

6 24.5 56.3 71.8

5

4 30.3

3 45.5

2 27.3

1 10.1 29.9

1 2 3 4 5 6

Rate of Labour input (L)

a. For this production system, are returns to scale decreasing, constant, or increasing?

b. Suppose the wage rate is $28, the price of capital also is $28 per unit, and the firm currently is producing 30.3 units of output per period using four units of capital and two units of labour. Is this an efficient resource combination? Why? ( Hint: Compare the marginal products of capital and labour at initial combination.)

1. You are asked to advice government on a policy consideration. The policy being considered is in effect looking to ban the importation of chicken into the country. 

Present a paper on your advice on this policy action.

Your paper should reflect: 

1. Intended and untended consequences of this policy action
2. Necessary integrations in other sectors necessary for this policy implementation
3. Short run and long run impact on economic growth, unemployment, inflation and BOP