In order to improve the financial Situation of Thoughts, the Manager looked into expansion plans and decided to offer caterings for events. For the catering business, the manager is offering his customers a selling price p that depends on demand, where p= 9 - 0.02*D.

a- Calculate the Quantity that Maximises Revenue.

b- Calculate the Quantity that Maximises Profit (Refer to problem 1 for costs).

Problem 1 Costs:

Rental $80 per day

Coffee beans $5 per Coffee Cup

Sugar $0.3 per Coffee Cup

Flavors $ 0.5 per Coffee Cup

Filtered water $0.2 per Coffee Cup

Labor $30 per day

c- Calculate the Breakeven point(s).

No Ready-to use Formula should be used in this Problem, show your iterations. Ready-to-use formulas and Calculator-derived results will NOT be accepted

WHAT ARE THE BEST 10 PENNY STOCKS TO BUY RIGHT NOW? and why

Is it good for an economy to experience sudden inflation or deflation? Explain with relevant examples.

Compare the neoclassical model, the new endogenous growth model and the strategic trade theory. Any differences between these theories? What are the differences? Explain in detail.

DOMESTIC workers will no longer be subjected to meagre salaries as the government has
adjusted the minimum wage for domestic workers, with effect from December last year.
The announcement was made by the Department of Labour Minister Mildred Oliphant and it
coincided with the signing into law of the National Minimum Wage Bill by President Cyril
Ramaphosa.
According to the Department of Labour’s new rates, domestic workers working in Area A (bigger
metropolitan areas) who work more than 27 ordinary hours per week, must be paid a minimum
of R13,69 per hour.
Workers who work fewer than 27 hours per week, must be paid a minimum of R16,03 per hour.
This will mean that a domestic worker who works 45 hours per week will now earn a minimum of
R2 669,24 a month.
Gardeners, drivers or people who look after children, the aged, sick, frail or disabled in a private
household, all qualify as domestic workers.
Source: https://www.news24.com/SouthAfrica/Local/Stanger-Weekly/sa-domestic-workers-toget-
higher-minimum-wage-20190109-2 Accessed 24/09/2019

With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum
wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour
hours as your quantity variable.

Compare and contrast the neoclassical model and the strategic trade theory in detail.

Contrast the neoclassical economic theory with the new economic theories (new endogenous growth theory, new economic geography, and strategic trade theory)? Do the new economic theories reject the neoclassical economic theory? Substantiate your arguments with real world case(s) and example(s). ( Explain it in detail)

Executive Summary of Impacts of Engineering Decisions on Financial Statements

Two firms, A and B, compete as duopolists in an industry. The firms produce a homogeneous good. Each firm has a cost function given by: C(q) = 30q + 1.5q² The (inverse) market demand for the product can be written as: P = 300 − 3Q , where Q = q1 + q2, total output.

Question: If each firm acts to maximize its profits, taking its rival’s output as given (i.e., the firms behave as Cournot oligopolists), what will be the equilibrium quantities selected by each firm? What is total output, and what is the market price? What are the profits for each firm?

1. A consumer spends all of his income only on two goods, X and Y. His utility function is given by U=XY. The price of good X is $P and the price of good Y is $2. His income is $400.
   1. Derive the PCC (price consumption curve) of this consumer as the price of good X changes .
   2. Derive this consumer’s demand function for good X.
   3. As the price of good X falls, this consumer’s demand becomes less elastic. True or False? Explain.

Question 3

3.1Explain what is meant by the term price elasticity of Supply

3.2 Use diagrams and examples explain the following three(3)Different categories of prices elasticity of Demand.

3.2.1. Unit elasticity demand

3.2.2.Relatively inelastic Demand (3marks)

3.2.3.Relatively elastic demand

3.3. list and explain an three(3)determinants of the price elasticity of demand

Question on Rubinstein Bargaining in Game Theory

Suppose players alternate in making offers until offer T ∈ N (N are Natural Numbers) is rejected, at which point the game ends with payoffs (0,0). Find the unique Subgame Perfect Equilibrium payoffs. Do they converge as T → ∞?

Question 2

1.with the diagrams differentiate between price ceiling and price floor as government intervention measures to market failure.

Support with references to the next above

2.use Diagram to explain how a so -called black market can develop when the government intervenes in the price mechanism by fixing prices

An industrial engineer is considering two assets to be purchased by a company. Asset A will have an initial cost of $90,000, an annual operating and maintenance cost of $32,000, and a $6,000 salvage value. Asset B will have a first cost of $135,000, an annual operating and maintenance cost of $25,000, and a $17,500 salvage value. Which one should be selected? Use a 15-year study period and an annual interest rate of 8%. Draw the cash flow diagrams. Always use factor notation.

1. Since government spending and planned investment are both fixed variables, what must be true of the aggregate expenditure function?
O A. The aggregate expenditure function is horizontal.
O B. The aggregate expenditure function is below and parallel to the consumption function.
O C. The aggregate expenditure function is above and parallel to the consumption function.
O D. The aggregate expenditure function is flatter than the consumption function and intersects it at the equilibrium output level.

2. Expansionary fiscal policy is used by the government to
A. create new jobs in the economy.
B. reduce the national debt.
C. reduce the budget deficit.
D. control inflation.

3. When government spending increases by $1, planned expenditures increase by $1
O A. and the equilibrium level of income will increase by $1.
O B. times the spending multiplier and the equilibrium level of income will increase by $1.
O C. and the equilibrium level of income will increase by $1 times the spending multiplier.
O D. and the equilibrium level of income will increase by less than $1.

4. When taxes are cut by $1, planned expenditures
O A. increase by $1 and the equilibrium level of income will increase by $1 times the tax multiplier.
O B. increase by less than $1 and the equilibrium level of income will increase by $1 times the tax
multiplier.
O C. increase by $1 and the equilibrium level of income will increase by $1 times the spending
multiplier.
O D. decrease by $1 and the equilibrium level of income will decrease by $1 times the tax multiplier.

4. Consider the following information on aggregate income, consumption expenditure, and planned investment for a country:

Aggregate Output/Income Consumption Planned Investment

  
$10,700 $10,280 $500   
10,900 10,460 500
11,100 10,640 500   
11,300 10,820 500   
11,500 11,000 500
11,700 11,180   500   
11,900 11,360 500

  
12,100 11,540   500   
When aggregate income is $11,100,
O A. saving is $40 and unplanned investment (inventory change) is - $40.
O B. saving is $460 and unplanned investment (inventory change) is - $40.
O C. saving is - $460 and unplanned investment (inventory change) is $500.
O D. saving is - $40 and unplanned investment (inventory change) is $500.
The equilibrium level of output/income is $ . (Enter your response as an integer.)
Based on the information above, calculate the MPC and MPS.
MPC = . (Round your response to two decimal places.)
MPS = . (Round your response to two decimal places.)
The investment multiplier is . (Enter your response as an integer.)
Suppose there is no change in the level of the MPC and the MPS and planned investment jumps by $200. Calculate
the change in the equilibrium value of income/output.
The change in equilibrium income/output is $ . (Enter your response as an integer.)