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Economics of Enterprise – Q&A

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Which product would be likely to be bought in the same quantity even if it doubled in price?
“Even if government spends its money on wasteful projects, it is still worth because it creates jobs.”
Which of the following statements reflects the broad economic goal of equity?
Congress increasing funding for space exploration in order to boost high-tech employment and develop new technologies
Removing funding from public universities that refuse to accept women, minorities, or economically disadvantaged applicants as students
The National Park Service maintaining a program of controlled fires to burn off undergrowth and keep wildfires from happening
The president speaking about economic opportunities in giving better trade status to countries with command economies

In 2011, Jean earns a salary of $150,000 and invests $20,000 for a 20% interest in a partnership not subject to the passive loss rules. Through the use of $400,000 of nonrecourse financing, the partnership acquires assets worth $500,000. The activity produces a loss of $75,000, of which Jean's share is $15,000. In 2011, Jean's share of the loss from the partnership is $7,500. How much of the loss from the partnership can Jean deduct?
other things remaining the same, what would happen to the supply of a particular commodity if the following changes occur,
a. the price of the commodity decreases.
If the cost per kilometre is $1.60, average utilisation 20 passengers per vehicle kilometre and average trip distance 10 kilometres what is the level of bus kilometres required to service this market?
If the cost per vehicle is $1.60, average utilisation 20 passengers per vehicle kilometre and average trip distance 10 kilometres
1 what is the level of bus kilometres required to service this market
2 what profits are being made
3 what type of profit is this normal or abnormal
4 what is the cost per passenger carried(as opposed to the cost per vehicle kilometre)
as this is perfect competition new firms may enter the market and compete this profits away what price therefore will ensure that only normal profits are made
If we assume that a given bus market is in perfect competition which charges a flat fare of $1 and if the formula for the total demand in the market is given by qd=250-60p where qd is the quantity demand at a given price. if we further assume constant returns to scale. (A)what is the total market demand at the $1 flat fare?
(B)if the market is shared by 4 firms what is the number of passengers carried by each company
(C)if the cost per kilometre is $1.60, average utilisation 20 passengers per vehicle kilometre and average trip distance 10 kilometre
1 what is the level of bus kilometres required to service this market
2 what profits are being made
3 what type of profit is this normal or abnormal
4 what is the cost per passenger carried(as opposed to the cost per vehicle kilometre)
(D) as this perfect competition, new firms may enter the market and compete this profits away . What price therefore will ensure that only normal profits are made
(E) the answer to part D should be the same as answer to C why
if we assume that a given bus market is in perfect competition which charges a flat fare of $1 and if the formula for the total demand in the market is given by qd=250-60p where qd is the quantity demand at a given price. if we further assume constant returns to scale. what is the total market demand at the $1 flat fare?
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