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# Economics of Enterprise – Q&A

695Questions:

the heights of a group of 1000 people are measured, and found to be distributed normally with mean height of 178 cm and a standard deviation of 12 cm

how many people do we expect to find with a height of 178 cm or less
In this module, it is demonstrated that some times extensive diseconomies of scale, say, due to high transportation costs, would require that the firm produce its product in a multiple of plants. Suppose a beer brewing company has determined that its total production cost is: TC = 1000 Q - 1.2 Q2 + 0 .004Q3 where Q is its annual output measured in metric tons.

A. The average hauling (freight) cost is $0.8Q; that is AFC = 0.8Q. Write the firm's average aggregated cost equation. B. Now suppose the firm is facing the following market demand: Q = 760,000 - 10 P Determine the optimal number of plants that the firm should have to take full advantage of the market demand. C. Calculate the firm's profit.  Answered! Option 4. 1. Formulate key success factors of the organization. 2. The tables contain primary source data. Alternative new shops built new shops not builts lodging a A 1 14 new process B 2 10 C 4 6 Data in the table represent costs Alternative new shops without new shops A 3 0 B 2 4 C 0 8 what choices do you make using each of the following criteria: maximin, maximax, laplace  In Progress... Option 1. 1. Analyze the external environment organization using PEST-analysis method. 2. The table contains the primary source data. Alternative new shops built new shops not builts lodging a A 1 14 new process B 2 10 C 4 6 The data presented in the table represent earnings. Identify alternative management, which will be selected when using each of the following criteria: a) maximin; b) minimax; c) the Laplace transform.  In Progress... Compare and contrast between present RBI Governor and his predecessor with regard to “Export Policy”.  In Progress... 3. If a firm uses only capital and labour, show why the cost minimising combination of inputs sets: MPK = PK MPL PL Diagrams are essential. It is impossible to produce a good answer to these questions without using a well-chosen, and well-drawn, diagram. Do not simply present a diagram without carefully explaining it in the text. Use diagrams to save words and explain them to illustrate your answer  Answered! Associated Technologies Co. has been working on a new product, a laser oven, through its well-known division that already markets microwave ovens. Unfortunately the company has just learned that an overseas competitor is also developing a laser oven and plans to bring it to market in six months. If Associated Technologies is to capture a large share of the market first its product must be out within 81 days. Fortunately, Associated has been taking an integrated approach to new product development and most pieces are already in place. After considering every possible reduction in time the company came up with the following activities that have to be completed with their respective times and overtime costs. The company will gain additional profits of$10,000 per day if the product is marketed before 83 days.

Prepare a CPM/PERT chart and determine project duration based on normal project duration (using Normal Time)
Prepare a CPM/PERT chart and determine the shortest time this project can be completed taking (using Crash Time).
Use project crashing technique and calculate the net extra profit the company will make by completing the project in the minimum number of days rather that the normal number of days (remember to subtract the total crash cost from the extra profit to find the net extra profit).
 In Progress...
When estimating a demand function, explain why fitting a line of best fit through observed price and quantity combinations over time is not likely to yield good estimates.