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A firm wants to minimize the cost of producing 40units of output. Given wage as to be $36 and price of capital as $4. Output is produced according to the Cobb Douglas production function Q= VLK
i. Find the unit of input (labour and capital) the producer will use to minimize the cost of producing the given output
ii. Find the total cost of producing the given output
When the price of a good increased by 50 percent, quantity demanded decreased by 100 percent. What is the absolute value of the price elasticity of demand?
Peace Ltd, a chair manufacturing company, uses the allowance method of accounting for uncollectible accounts receivable. Transactions during the year:
(1) 5th Jan Sold goods @$2,000 on credit to Mr A (originally cost $1,400)
(2) 8th Jan Accepted a 60-day, 10% note for $2,000 from Mr A on account
(3) 20th Jan wrote off a $1,250 account from Open Co as bad debt
(4) 5th Feb Received from Mr A the amount due on his note of 8th Jan
(5) 14th Feb Reinstated the account of Open Co and recovered $1,000 in cash
(6) 24th Feb Sold goods @$10,000 on credit to Mr B (originally cost $7,700)
(7) 28th Feb It is estimated that 15% of the credit sales on 24th Feb will be uncollectible
Journalise the transactions given that the accounting period is set at monthly
*Production volume for product A was estimated at 1000 units.
*Only 80% production was achieved.
*Each unit of product A requires 0.5 hours at an hourly rate of N$8.50
*80% production volume was produced at 45 minutes per unit at an hourly rate of N$8.00
*Buys raw materials from local suppliers at N$3.50 per kilogram
*Each unit requires 1.5 kilograms
*Two Kilograms were used per unit
*Total monthly budgeted manufacturing overheads costs amounted to N$950
*Actual monthly manufacturing overheads cost was N$1200
*Lungameni Enterprises production manager view that manufacturing overheads cost be absorbed on basis of direct labour costs. There was no opening inventory and all units produced were sold.
Required:
1.For the information above calculate the gross profit / loss
2.Any recommendation for Lungameni Enterprise production manager?
*Production volume for product A was estimated at 1000 units.
*Only 80% production was achieved.
*Each unit of product A requires 0.5 hours at an hourly rate of N$8.50.
*80% production volume was produced at 45 minutes per unit at an hourly rate of N$8.00
*Buys raw materials from local suppliers at N$3.50 per kilograms.
*Two kilograms were used per unit.
*Total monthly budgeted manufacturing overheads costs amounted to N$950
*Actual monthly manufacturing overheads cost was N$1200
*Lungameni Enterprises production manager view that manufacturing overheads costs be absorbed on basis of direct labour cost. There was no opening inventory and all units produced were sold.
Required:
1.For the information above calculate the gross profit / loss.
2.Any recommendation for Lungameni Enterprise production manager
Use micro (and relevant macro) economic analysis to justify your decision of relocating your business from one country to a particular country.
Explain the determination of equilibrium level of GDP using the aggregate expenditure approach and the savings investment approach in a two sector model. Do you think that equilibrium will always occur at full employment level of output?
What is the Marshall-Lerner condition for a stable foreign exchange market? For an unstable market? For a depreciation to leave a nation’s Balance of Payment unchanged?
Given that 𝐶 = 100 + 0.8𝑌; 𝑀 = 150 + 0.2𝑌; 𝐼 = 100 𝑎𝑛𝑑 𝑋 = 350,
a) Determine the equilibrium income
b) Show the results on two graphs with
(i) Injections and leakages on the vertical axis
(ii) Net injections and net domestic leakages on the vertical axis
c) Determine the new equilibrium and show on graph when there is;
i.An increase in X and I of 200
ii.A decrease in M of 100
iii.A decrease in S and M of 100
Explain expenditure-changing and expenditure-switching policies. Using the swan diagram, explain how these policies can be used to achieve external and internal balance.
