Economics of Enterprise Answers

consider the simplest macro model with demand-determined output. the equations of the model are : C= 150+0.8YD, I = 400, G = 700, T = 0.2Y, X = 130, and IM = 0.14Y. Total autonomous expenditure in this month are?

An investor company....

Bill of Quantity
S.N. Items Unit Unit price $ total
1 Land 650 m2 570
2 Cement jobs 320 m3
3 Steels 90 tone
4 Bricks 22000 0.75
5 Plumbing, Electricity, and communication network 16% of total structure cost
6 Finishing: Gypsum, painting, tiles, lavatories, decoration, windows, doors, etc 65% of total structure cost
7 Office and classroom furniture 31% of total cost (exclude cost of land)



**Labor costs comprise of 30% of total project.
**Site preparation costs $15000
Requirements:
1- Calculate total cost of the project based on the given table. You are required to assume cost of items based on current market price.

4- Calculate time to recover the costs associate with the project including cost of capital if the revenue of first year is $50 000 and increases by 6% for the subsequent years. The operation cost of the centre is $22000 and increases by 3% per year.

An investor company has hired you to assess the viability of a project “Education Centre” to be implemented in Sulaimani. The investor’s minimum rate of return is 9% while the rate of inflation in the region is 7.2%. A proposal has been submitted to bank A and B to borrow the capital to construct the building for the education centre. Bank A requests 18% on simple interest rate for 15 years whereas Bank B request 11% compounding monthly for 12 years.

Discuss the nature and scope of managerial economics

if demand for a product falls and the supply increases, what will happen?

explain the crude quantity theory of money with their equation P=aM

With aid of a fully diagram, explain the difference between the govermnent enforcing a minimum price below the equilibrium and the government enforcing a minimum price anove the equilibrium price, ceteris paribus

1. Rank the following proposals in terms of their ability to increase the equilibrium level of income :
a- Government spending and taxes increase by x
b- Government spending and taxes decrease by x
c- Government spending increase by x
d- Taxes increase by x
2. Suppose that MPC = 0.9 and MP to import = 0.10 and an autonomous increase in Exports = $10 . Calculate :
a. The level of the multiplier
b. The change in the level of imports
( Hint : k = 1 / 1- MPC + MPM )

Consider a monopolist with the following demand functions for different market segments q1=16-0.2P1
q2=9-0.5P2
Where q1 and q2 are the quantities demanded in markets 1 and 2 respectively, and p1 and p2 are the prices charged in the two market s. The cost function is C=50+20 (q1+ q2).

Pakistan cement industry has shown very fast progress in last few years and has
become a leading sector of the economy. At the time of inception, there were only
four cement plants in Pakistan which has now grown to over 30 units. Cement
manufacturers have also expanded their production capacity to meet higher demand
because of construction projects and CPEC. Maple Leaf Cement Factory Limited is
a reputable largest manufacturer of cement in Pakistan. The company was set up in
1956. Suppose the quantity demanded and quantity supplied functions of cement
industry in starting week of current month are:
Qd = 5000-6P
Qs= 1500+P
Where ‘P’ is the price in rupees per bag of cement and ‘Qd’ is quantity demanded of
cement in number of bags. ‘Qs’ is quantity supplied of cement in number of bags.
Requirements:
a. Calculate the market equilibrium level of price and quantity.