Answer:
The explanation is below
Explanation:
A. Shutdown point is achieved when price equal AVC. when price lowers than the AVC, firm shutdown.
VC = q^2
AVC = q
So,
P = q is the shutdown point.
B. For profit maximizing level of output,
P = MR = MC
500 = 20 + 2q
q = 240 units
So, profit maximization level of output = 240 units
C. Firm level supply curve = MC curve above the shutdown point
Number of firms = 5
So,
Industry supply curve = 10*MC = 200+20Q
Industry supply curve = 200+20Q
It shows that MC curve above the shutdown point is supply curve.
Explanation:
To understand the basic philosophy behind the four factors of production
Land - Labor - Capital - Entrepreneurship
Lets consider an example:
Someday, just finishing your college, you think of starting a pizza business and you start selling pizza's one day. You might end up making a Pizza brand like Pizza Hut.
Here, in this example, to start your pizza shop, you need a place or area, this is known as Land factor. When you start making pizza, you need someone to work in that shop, (or if you doing it by yourself too) there should be at least some human being doing it, this factor is referred as Labor. To start the pizza shop, you need to buy the equipment, taking a shop on rent, or buying it, renovation of the shop etc. All of these things need, of course, Money, which is referred as Capital here. The idea you going to start this business, the courage to make it, definitely makes you an Entrepreneur, in utilizing all other factors effectively and efficiently. Therefore, this is linkage between these four factors of production, and how they fit together.
C.
First consider the effects on demand and supply. What will occr is that demand will decrease and the curve will shift to the left. As a result, if you draw the diagram out, equilibrium price and quantity will decrease.
Answer: The problem in outsourcing from low-cost country:
It is seeking goods and services beyond the border of a region. It is a process where organizations look for the most cost-effective place globally to manufacture their goods. Most organizations choose a global sourcing strategy as the cost is using lower abroad.
Explanation:
Outsourcing from low-cost countries a move by the company to cut costs as they have a huge presence of labor. It will allow them to concentrate on their core activities. But, there are some problems outsourcing from low-cost countries. Some are :
1. Sometimes the outsourcing does not provide the expected cost savings.
There might be new conflict and problem arising from different sources
2. There might be legal barriers present between the two different nations involved in outsourcing.
Answer:
a. For 2010 =$325 For 2011 = $445
b. 136.92%
c. 38.89%
Explanation:
a. The computation of the price of each vegetable is shown below:
For year 2010:
= Cauliflower price + broccoli price + carrots price
= $200 + $75 + $50
= $325
For year 2011:
= Cauliflower price + broccoli price + carrots price
= $225 + $120 + $100
= $445
b. The computation of CPI is shown below:
= (2011 Price ÷ 2010 Price) × 100
= ($445 ÷ $325) × 100
= 136.92%
c. The inflation rate is shown below:
= (2011 per total vegetables price - 2010 per total vegetables price) ÷ 2010 per total vegetables price
= ($5.00 - $3.60) ÷ $3.60
= 38.89%
Per vegetable price = (Price of each vegetable ÷ number of each vegetable)
For 2010:
Cauliflower = ($200 ÷ 100) = $2
Broccoli = ($75 ÷ 50) = $1.5
Carrots = ($50 ÷ 500) = $0.10
The total would be $3.60
For 2011:
Cauliflower = ($225 ÷ 75) = $3
Broccoli = ($120 ÷ 80) = $1.5
Carrots = ($100 ÷ 500) = $0.50
The total would be $5.00
