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An orange cost #5 and an apple cost #10. The first orange consumed by musa yielded marginal utility (MU) of 55 utils and at every subsequent consumption of an orange, the marginal utility (MU) diminishes by 5 utils while the first apple consumed by him yielded 80 utils and at every subsequent consumption marginal utility (MU) diminishes by 10 utils. A. Present this in a marginal utility (MU) schedule to the fifth orange and apple purchased. B. How many oranges and apple will he buy in order to maximize his utility? C. How much will he spend on the fruits? D. What should he do if his marginal utility (MU) of orange is 35 utils
Cures for production externalities include the use of (i) Pigouvian taxes (ii) setting up a market for the externality (iii) allowing firms to merge and (iv) transfer of property rights in other ways. Demonstrate how each of these policies can reduce production externalities in an economy
Animax sells 150 000 units of dog food to retail stores. The cost to the company is $25 per unit. The cost of processing each order is $260 and the carrying cost is $4.50 per unit. Required: Using the EOQ model, calculate the quantity the company should order at a time.
"Functionalism plays an important role in instilling in the members of society the solidarity and value consensus that modern society requires in terms of its maintenance and stability based on shared goals, rules and norms for appropriate behaviour.” With the above in mind, briefly explain the functionalist perspective on schooling in society by arguing the essential norms proposed by Dreeben to function in a modern society
The market is unable to provide national defence efficiently.” Discuss this statement critically.
Country A recently loosened their immigration policies, which has greatly increased the number of mechanics in the workforce. Which of the following pairs represents the new wage and the new quantity of mechanics? Wage increase, quantity increase Wage increase, quantity decrease Wage decrease, quantity decrease Wage decrease, quantity increase Indeterminate wage change, quantity decrease
Dan Levy is in partnership with three others in their business, Outdoor Camping World. (Outdoor World had been Dan’s business and Camping World had been run by the other three until they merged the businesses last year. They merged the names too, so they might keep all their old customers, even though it doesn’t make much sense.) Dan argues that the firm should maximise gross profit margins [(selling price – buying price)/ selling price] on each item of stock. (a) Do you think this is a valid financial objective? (b) Is this objective consistent with maximisation of partners’ wealth? (c) What problems do you see in operationalising this objective?
Nib Chocolate Company produces 100,000 chocolate bars, which sell for 4 ETB a bar. Variable costs are 3ETB per bar, and it has 150,000ETB fixed operating costs in the short run. Then, (5 pts) a) Should the firm keep producing, as profits are ETB 50,000? Why? b) Should the firm shutdown, as fixed costs are not being covered? Why? c) Should keep producing as variable costs are being met? Why? d) What do you think will be the decision of the firm in the long run?