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Breifly discuss the factors that determine demand for an insurance policy and how they different then normal determinant demand of a commodity?
A consumer has a utility function . The prices of and are 3$ and 4$, respectively and his income is 70$. Find the demand bundle at these prices?
A firm operating in a competitive industry has it cost function as TC =100+4Q-10Q²+⅓Q² if the market price P=30
Find the profit maximizing unit of outline and the total profit at the level of output ratio
Assume a consumer has $40 to spend and for both products the marginal utilities are shown in the following table: Quantity MUA MUB 1 35 80 2 20 40 3 12 18 Assume that each product sells for $10 per unit. a) How many units of each product will the consumer purchase? b) Assume the price of product B rises to $20 per unit. How will this consumer allocate her budget now? c) If the prices of both products rise to $20 per unit, what will be the budget allocation
Suppose a country imports oil. The world oil price has recently decreased, affecting the country’s domestic aggregate supply. Explain how policymakers find the trade-off between unemployment and inflation in the short run in the country. Diagram(s) required.
A sales representative for a struggling computer supply firm has a chance to close a multimillion dollar deal for an office system to be installed over a two year period. The machines for the first delivery are in the company’s warehouse, but the remainder would have to be ordered from the manufacturer. Because the manufacturer is having difficulty meeting the heavy demand for the popular model, the sales representative is not sure that subsequent deliveries can be made on time. Any delay in converting to the new system would be costly to the customer; however the blame could be placed on the manufacturer. Should the sales representative close the deal without advising the customer of the delivery problem? Discuss the pros and cons of the decision the sales representative chooses to take.
3 b. You have studied Business Ethics in a structured manner in this program. Has it helped you with tools to better manage your decision making process as a business person? Explain in your own words
The difference between what a product is willing to sell for a unit of a good and what must be received when actually selling it is called...
1 deadweight loss
2 net loss
3 producer surplus
4 consumer surplus
Macroeconomics models are simplified explanations or theories of how the economy works . discuss the importance of economic models
On average, a hectare produces 50 tons of bananas. For sake of simplicity, lets assume that they are only 100 hectares of bananas. Total production is then 5000 tons. Assume that disease will destroy 10% of the initial area in a year. It means that in year 0 production will be 5000 tons. In year 1 , production is 4500 tons. In year 2, production is 3500 tons .Assume the initial price is $1. Assume demand elasticity is -0.5 and supply elasticity is 1. Calculate KA for each year. Note that K will be calculated based on the change of total quantity produced instead of the change in yield. You will find a negative KA which is the vertical shift generated by the disease. How does this look graphically ? Draw the graph. 2. Calculate change in consumer and producer surplus change. Note that it is not positive. Assume that the discount rate is zero.
Futuristic was a newly setup firm in 2019. It is in the business of providing artwork. However, being in the business of standard art objects (non-essential items), it did not do well once it was hit by COVID-19. It has a selling price of ₹2,500 per piece and a variable cost of ₹1,000 per piece. It incurs an annual fixed cost of ₹30,00,000. a. The manager of the business wishes to know- the number of art pieces they must sell to be at the break-even point the contribution margin whether the firm is earning a profit or incurring a loss by selling 2,100 art pieces
