Economics of Enterprise Answers

11. Explain why a “capital-intensive” industry can be difficult to enter for an entrepreneur. What might the entrepreneur do to overcome the entry barriers to a capital-intensive industry?

12. How can a technology company recruit and retain valued knowledge workers? Give an example of a company that excels in this regard. What does it do that makes it successful?

13. What are CEOs of global companies saying about the pace of change in the global economy? How can a technology venture deal with an accelerating pace of change?

14. How did Microsoft adjust its strategy in the Chinese market? What mistakes did it make in the early days in that market?

15. Explain what is meant by the term “sustainable competitive advantage.” What should a technology venture do in the modern global economy to develop this?

1. What are the two primary elements of a going concern?

2. What does it mean to say that a business is a purposeful activity?

3. How does a business determine whether or not its products and services are valuable? Define the relationship between price and quality, and their effects on value.

4. Explain the role of a value proposition for a business. What is the value proposition for YouTube?

5. Describe how a capitalist economy differs from a socialist economy.

Diagrammatically the impact on firms profit if in the short run demand for the product reduces

As the district manager for a region of retail discount clothing stores, Henry Banks is preparing for a quarterly meeting with all of the store managers in his district. As part of a presentation about company hiring practices, he plans to stress the importance of diversity. He knows the company needs a diverse workforce to meet the needs of the company’s diverse customer base; however, he is not sure how to convey this to the group of store managers. What do you think Henry should say in his presentation?

(600 words)

John is a successful business owner. His landscaping business is growing, and a few months ago he decided to bring in somebody to manage his office operations since he had little time to keep on top of that activity. However, this individual can’t seem to make a decision without agonizing about it over and over and on and on. What could Juan do to help this person become a better decision maker?

(500 words)

Mary has been working as a marketing manager and earning an annual salary of RM80,000. Using her own fixed deposits of RM100,000 from a local bank which earns her 0.3% interest per month, she decides to quit her job and open her own restaurant in Johor Bahru. Every year she pays RM24,000 for equipment leasing; RM60,000 for shop rental; and her average monthly utilities bill is RM1,000. She spends RM48,000 yearly to purchase fresh raw materials for her restaurant. Mary hires 4 workers who are paid RM2,000 each month. Her business runs very well with an average monthly sales of RM33,000. Calculate the following values on a yearly basis:

(i)    Implicit cost and explicit cost

(ii)  Accounting profit and economic profit

Some small school don't have official majors but people sometimes claim them anyway because they took several courses in a specialized area. is this an acceptable practice

3.If you had been on Yahoo's board, would you have supported keeping Thompson?

4. Why do you suppose Thomson resigned?

Differentiate SHAREHOLDER WEALTH MAXIMIZATION from PROFIT MAXIMIZATION and describe why the former is the ultimate goal of financial management.

Cite your sources properly:

Molly has a $2500 down payment saved for this purchase, and the dealer’s $1500 Cash Allowance will come straight off her total. How much will Molly’s monthly payment be? 

Given the demand function for the two markets and total cost function that:

Q₁ = 55 – P₁; Q₂ = 70 – 2P₂ and TC=5Q + 20 where Q = Q₁ + Q₂

A.   Calculate the equilibrium price, equilibrium quantity in each market with price discrimination.

B.    Calculate the maximum profit using equilibrium price and quantity with price discrimination.

C.    Calculate the price elasticity of demand in each market using MR=P(1+1/Ɛ_p).

D.   Calculate the equilibrium price and quantity without price discrimination.

E.    Calculate the maximum profit without price discrimination.

F.     Is the Monopolist better off with or without price discrimination.