In this question, consider a restaurant that may or may not satisfy some food hygiene
standard. It is known that 4 out of 10 restaurants of this type satisfy said standard.
The restaurant’s profit is a function of potential customers’ beliefs: we assume that
the restaurant makes a profit of £0 if customers attach less than probability 4/5 to the
standard being satisfied, and a profit of £500 otherwise.
A food hygiene agency has been commissioned to inspect the restaurant. The agency
can either deliver a pass certificate or no certificate.
(a) Assuming that the director of the food hygiene agency has aligned interests with
the restaurant’s owner, what rule should the agency follow when deciding whether
or not to deliver a pass certificate to the restaurant? Justify your answer by framing
the problem as a basic information design problem.
"There are constraints on public, household and corporate balance sheets, abandoning export orientation is akin to killing the only goose that can lay eggs." Using the above statement, explain whether the trade policy adopted in the Indian economy is warranted and will it work in the future?
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a
proposed construction firm and an estimated working capital of P2,000,000. Annual
depreciation is estimated to be 12% of the fixed capital investment. Determine the rate
of return on the total investment if the annual profit is P3,500,000.
Briefly explain and illustrate the impact the change in consumers tastes and preferences will have on the original demand curve
Given Q = 700 - 2P + 0.02Y where P = 25, and Y = 5000
(a) Calculate price of elasticity of demand and interpret the values
(b) Calculate the income elasticity of demand and interpret the value in relation
to the product.
Examine the statement the Eskom losses momentum
Conduct a research and find out the impact of energy economics on agricultural industry. Analyse how electricity supply in south Africa is affecting agricultural production and employment.Consider factors such as electricity supply, electricity demand, elasticity and pricing strategies.
Explain how floating exchange rate is determined.(8mrks)
Analytically discuss a theory that describes contemporary international trade
during which step of the planning process would alternative plans be developed