The table below shows the demand and supply of coats in Small Town.

a. What is the equilibrium price of coats?

b. Will a shortage or surplus occur?

c. At what price will the most coats sold be sold?

d. The mayor of SmallTown in order to "help the poor by making coats cheaper", imposes a price ceiling of $40. How many coats will be bought and sold? Will a surplus or shortage of coats occur?

e. The mayor of Small Town, in order to "help protect our coat industry," imposes a price floor of $80 instead. How many coats will be bought and sold? Will a shortage of coats or surplus occur?

To answer all the questions, it will be easy for you to draw the supply and demand graph first to see the whole picture. Keep it up!

Back from his dream, Matt begins some strategic planning for starting another store in a small town that has no computer store and is not inclined to use mail order buying methods.

1. He believes the annual demand in the town will be P = 1800 – 10Q. First, calculate Matt's marginal revenue curve, and then graph both the demand and MR curves.

2. He estimates his marginal cost per computer to be constant at $600. Sketch on the graph the marginal cost curve. From this data, calculate how much he should sell to maximize profit and what price Matt should charge.

3. If capital costs are fixed at $12,000 for the year what is Matt’s total cost function and his average cost per computer at the optimal output?

4. From the average cost at profit maximum output, show the profit rectangle on your graph above.

5. If Matt were able to perfectly price discriminate, what would be his output and profit?

Tshepo and Onalenna are two graduates who were employed by a big company in Pikwe. after gaining some experience, they gace in to the temptation to go it alone. They approached a company consultant in town who advised that they could open their own company with the two as directors sharing 50:50. Their first major business was through a tender for construction of an oil pipeline from Maun to Franscis town. This tender was valued at P50 million. After receiving their first payment, they all over suddenly become spent thrift. They settled for expensive procurement of cars, houses; which they billed on the company. As a consequence taxes bagan to fall due and government pressed them to account for the monies they had received. Fearing they might be prosecuted, they withdraw all the money and migrate to South Africa. The company has been betrayed and so are the employees and the government.

required :

In relation to company law, explain the doctrine of separate legal personality and illustrate the effect of the doctrine on the liability of owners of the company  

Suppose Rialto is the only movie cinema in a small college town, so it is essentially a monopoly for the local movie market. They charge a certain price P for a monthly pass. There is an overall demand curve for movie passes, given by P=900−4Q However, demand in the town has two distinct consumer groups: adults (A) and students (S). The demand for the whole group of adults is given by P=1200−8QA and the inverse demand for students is given by P=400−2QS Assume for simplicity that the constant marginal cost MC(Q) of showing a movie is 20 and there are no additional fixed costs.

(e)Calculate the profit-maximizing quantities and prices for students and adults.

(f) Calculate total costs, revenues, and profits resulting from these values.

(g) Show this in your figures graphically, as well

(h) Compare total profits in (b) with (f). Which is greater. Under what circumstances would the ID machine be worth it (that is, for what values of $M)?

Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:

In March, the school budgeted for 1,840 students and 81 courses. The school's income statement showing the actual results for the month appears below:

Required:

Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:

In March, the school budgeted for 1,840 students and 81 courses. The school's income statement showing the actual results for the month appears below:

Required:

Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

1. (8 pts) The superintendent of a large school district speculated that high school students involved in extracurricular activities had a lower mean number of absences per year than high school students not in extracurricular activities. She generated a random sample of students from each group and recorded the number of absences each student had in the most recent school year. The data are listed below. Test the superintendent’s claim at the α=.01 significance level. [To receive full credit, your response should be sure to state your hypotheses, check the relevant requirement(s), find a test value, find a critical value or p-value (either is OK), make your decision, and state your conclusion.]

Students in EC Activities: 4 1 2 0 5 6 2 1 0 3 0 1 1 4 8 6 9 2 0 4 2 10 5 6 1

Students not in EC Activities: 5 7 0 9 4 3 12 8 4 2 0 5 5 4 9 14 6 10 9 6 3

The Classical School of economic thinking is quite different from the Keynesian School. The adherents believe in different roles for government and have different ideas about what drives an economy and even what an economy is and how it functions. Explain the two approaches for the following scenarios (be sure to think of monetary policy, fiscal policy, effects on the components of GDP, and incentives people may face):

The economy is in a recession.

The Federal Reserve Board has decided to lower interest rates below what many consider to be the proper or natural rate.

Some policy makers are advocating an inflationary policy to address unemployment.

Senator R has proposed a law exempting credit card purchases and interest on credit debt from taxes to stimulate consumption.

The superintendent of a large school district speculated that high school students involved in extracurricular activities had a lower mean number of absences per year than high school students not in extracurricular activities. She generated a random sample of students from each group and recorded the number of absences each student had in the most recent school year. The data are listed below. Test the superintendent’s claim at the α=.01 significance level. [To receive full credit, your response should be sure to state your hypotheses, check the relevant requirement(s), find a test value, find a critical value or p-value (either is OK), make your decision, and state your conclusion.]

Students in EC Activities: 4 1 2 0 5 6 2 1 0 3 0 1 1 4 8 6 9 2 0 4 2 10 5 6 1

Students not in EC Activities: 5 7 0 9 4 3 12 8 4 2 0 5 5 4 9 14 6 10 9 6 3

2) Bon Air Elementary School has 300 students. The principal of the school thinks that the average IQ of students at Bon Air is 110. To prove her point, she administers an IQ test to 20 randomly selected students. Among the sampled students, the average IQ is 107 with a standard deviation of 6, suggesting that the average IQ is lower than she thought. Based on these results, should the principal accept or reject her original hypothesis? Assume a significance level of 0.01.

a) Write the appropriate hypotheses. Be sure to define any variables you introduce.

b) Find the P-value. Use your calculator.

c) State your conclusions.