Economics of Enterprise Answers

What might happen if the government invested heavily in automation?

Price elasticity of demand gives a measure of how sensitive or responsive the _____ of a good or service is to a change in the ___ of a good or service

assume that United states is an importer of televisions

Ball Bearings, Inc., faces costs of production as follows:

Quantity Total Fixed Cost Total Variable Cost

0 $100 $0

1 100 50

2 100 70

3 100 90

4 100 140

5 100 200

6 100 360 Calculate the company’s average fixed cost, average

variable cost, average total cost, and marginal

cost at each level of production.

b. The price of a case of ball bearings is $50. Seeing

that he can’t make a profit, the chief executive

officer (CEO) decides to shut down operations.

What is the firm’s profit/loss? Was this a wise

decision? Explain.

c. Vaguely remembering his introductory economics

course, the chief financial officer tells the CEO

it is better to produce 1 case of ball bearings,

because marginal revenue equals marginal cost

at that quantity. What is the firm’s profit/loss

at that level of production? Was this the best

decision? Explain.

1.     A woman managing a duplicating (photocopying) establishment for $25,000 per year decides to open her own duplicating place. Her revenue during the first year of operation is $120,000, and her expenses are as follows:

Salaries to hired help                       $45,000

Supplies                                                15,000

Rent                                                     10,000

Utilities                                                1,000

Interest on bank loan                          10,000

Calculate (a) the explicit costs, (b) the implicit costs, (c) the business profit, (d) the    economic profit, and € the normal return on investment in this business.

numerical difference between rate of change and the level of change

What are average cost and marginal cost? Given total cost function: C = Q ^ 3 - 12Q ^ 2 + 6Omega*Q Find

Average cost and marginal cost

Critically discuss the principles of learning that could help you in designing and conducting your Economics education sessions