Economics of Enterprise Answers

You are the Accounting Manager for a company.You are analyzing your AR and you realize that the average collection period is lengthening every month, and this trend started 8 months ago.What specific action or steps would you take to (1) identify items that are potentially causing the collection time to increase and (2) reverse the trend and reduce the average collection time.

(1) What is DSO and how is it calculated?

(2) What is AR Turnover and how is it calculated?

(3) Identify ONE action/step you would take to identify the potential items causing the increase in your average collection period and 4 actions/steps you would take to reduce the collection time.

The company produces alkaline batteries for two groups of consumers (poor and rich) whose inverse demand functions are below. MC=40. How many times should the number of poor consumers be greater than the number of rich consumers to justify the focus on the entire consumer surplus of the poor group?

P1 = 160 - 20Q;

P2 = 200 - 16Q

On the job experience typically enhances a person’s productivity in that particular job. If the person’s salary increases to reflect increased experience but the additional experience has no relevance for other jobs, does this higher salary reflect an increase in opportunity cost or in economic rent?

GNP= $ 4527 NNP= $ 4047 Indirect tax =366 Others net = -2 Find out: (a). Depreciation? (b). NI? (c). why indirect taxes are deducted from NI to calculate NNP?

On January 1, 2019, Joan Campbell borrows $20,000 from Susan Rone and agrees to repay this amount in payments of $4,000 a year until the debt is paid in full. Payments are to be of an equal amount and are to include interest at 12% on the unpaid balance of principal at the beginning of each period. Assuming that the first payment is to be made on January 1, 2020, determine the number of payments of $4,000 each to be made and the amount of the final payment.

What is the future value on December 31, 2026, of 7 annual cash flows of $10,000 with the first cash payment made on December 31, 2019, and interest at 12% being compounded annually?

What is the effect of Steve's proposed change on income before taxes in the year of change?

why is productivity important?

You are a senior analyst at the Central Bank, MMA and have been assigned to come up with suggestions

on the way forward in Monetary & Fiscal Policy of Maldives. (Suggestions on Fiscal Policy will be advised

to the Government)

Write a comprehensive report on justifying your suggestions, which will be presented to the board of

directors of the MMA for approval.

Your report can include:

• Analysis of current situation

• Suggestions on Monetary Policy

• Suggestions on Fiscal Policy

• Reasoning and Justification of suggestions

• Other considerations regarding the economy

Price elasticity of demand measures the responsiveness of the quantity demanded to a change in price when all other influences on buyers’ plans remain the same. Explain the different types of elasticity of demand.

With the reference to the above case study, discuss the likely factors that influence the price of fuel.