Economics of Enterprise Answers

There are 5 workers in an economy. Each worker can make either 4 tins of milk or 3 shirts. Output per worker is independent of the no. of other workers in the same industry

The price of a particular product is £5.00 per unit, and on average 150 units of the product are sold per month. If the price is increased to £8.00 per unit, demand is expected to fall to an average of 80 units per month. The price elasticity of demand for the product is

Two methods can be used for producing expansion anchors. Method A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of $120,000, an operating cost of $8000 per year, and a $40,000 salvage value after its 3-year life. At the MARR of 12% per year, which method should be used on the basis of a present worth analysis? 

The price of airline tickets goes up, the demand for

train tickets will

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.

Given the Total cost Function, TC = 5,600 + 27Q - 6Q² - .5Q³, solve for AC, MC, AVC and AFC

List and explain five positive effects of opportunity cost

List and explain five positive effects of opportunity cost

Directions: Analyze the following questions and provide your answer.

1. How is tax the lifeblood of the government?

2. Should there be a uniform minimum wage in the whole country of the Philippines? Why or why not?

Topic: Minimum Wage and Taxes

Directions: Make a generalization on how minimum wage and taxes can be applied on the very essence of learning Applied Economics. Answer using 3-5 sentences only.