• There only two countries and two commodities
• The production cost is expressed in terms of labor.
• There is a perfect competition in commodity and factor market.
• There is no transportation cost.
• There is full employment in both countries.
• The production is subject to constant returns to scale
• The trade between the two countries is barter trade
• The technology does not change.
• There are no trade barriers
• Labor is the only factor of production
• Labor is perfectly mobile in a country but immobile between the two countries.
skilled writter answered the question on April 26, 2018 at 16:58
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Discuss the effects of Government borrowing on the Economy and give a possible solution to the problems
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Discuss the effects of Government borrowing on the Economy and give a possible solution to the problems.
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April 22, 2018
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April 21, 2018
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Explain briefly the various stages of economic development according to W.W. Rostov.
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April 21, 2018
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Critically explain Malthusian theory of population.
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April 16, 2018
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What are the reasons for studying economics of education?
Date posted:
April 4, 2018
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a)Explain briefly the application of calculus to economic models, especially in the context of maximizing contribution and minimizing costs.
b)Company A...
(Solved)
a)Explain briefly the application of calculus to economic models, especially in the context of maximizing contribution and minimizing costs.
b)company A sells all its output to company B for Sh. 200 per unit. The cost of the sales per week in company A are given by the function C = 2q2 + 40q + 80 where q is the value of weekly sales. Company B uses the output of company A to manufacture a product whose demand is dependent on the sale price. The revenue per week of company B is given by the function:
R = 1000q – 16q2 and the cost per week of company B excluding cost of the products bought from company A are given by the function.
C = 2q2 + 80q + 400
Company A can restrict the weekly supply of its product to company B, but cannot raise the unit price above Sh. 200. The two companies are considering whether to merge together into a single company.
Required:
i)At what weekly sales would company A maximize its profits? What would be the profit or loss of company B if company A were able to supply a profit maximizing quantity of its product each week?
ii)At what level of weekly sales would company B maximize its profits?
iii)If the two companies merge into one, what would be the profit maximizing output per week and what would be the weekly profit?
Date posted:
April 2, 2018
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Answers (1)
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Describe the limitations of the CVP (Cost, Volume and Profit) Analysis
(Solved)
Describe the limitations of the CVP (Cost, Volume and Profit) Analysis.
Date posted:
April 1, 2018
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Your firm is the auditor of Trent Textiles Ltd, and you are planning your
audit work on the stock-take, which will be carried out at...
(Solved)
Your firm is the auditor of Trent Textiles Ltd, and you are planning your
audit work on the stock-take, which will be carried out at the firm‟s year-
end of 31 May 19X3.
Trent Textiles manufactures knitted garments, including pullovers. The
production process comprises:
(a) Knitting the individual components (e.g body and arms);
(b) Sewing the components together to form the finished garment;
(c) Cleaning, finishing, pressing and folding the garments;
(d) Packing the garments, ready for dispatch to the customer.
Trent Textiles does not have a perpetual inventory system, so the value of
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three months.
Your permanent file of the company confirms that it has a single factory
and no internal audit department.
You have been asked by the manager in charge of the audit to suggest the
work you will perform at the stages listed below.
Required:
(a) State the work you will carry out prior to the commencement of the
stock-take.
(b) State the procedures you will check during the stock-take to ensure
the company‟s staff have accurately recorded the stock.
(c) State the work you will carry out and the matters you will record at the
stock-take
Date posted:
March 30, 2018
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(Solved)
List six effects of price decontrol?
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March 23, 2018
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(Solved)
Compare and contrast ordinal and cardinal utility theory.
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March 21, 2018
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(a) Distinguish between money, near money and money substitutes.
(b) Identify and explain the functions of...
(Solved)
(a) Distinguish between money, near money and money substitutes.
(b) Identify and explain the functions of money. (6 marks)
(c) Explain the reasons for liquidity preference for money.
(d) Explain any four qualities of money.
Date posted:
March 16, 2018
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(Solved)
Give reasons why teachers study economics of education.
Date posted:
March 16, 2018
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Give reasons why economists are interested in education.
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March 16, 2018
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Outline the solutions to problems of education planning.
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March 16, 2018
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Discuss the major problems facing educational planning in developing countries.
Date posted:
March 16, 2018
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Describe the social organization of the Nandi during the pre-colonial period.
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March 14, 2018
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Highlight the critical areas of choice in educational planning.
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March 13, 2018
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(Solved)
Discuss the functions of educational planning.
Date posted:
March 13, 2018
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Outline the demerits of the Manpower Requirement Approach in educational planning
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Outline the demerits of the Manpower Requirement Approach in educational planning
Date posted:
March 13, 2018
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Comment on the merits of the Manpower Requirement Approach in educational planning
(Solved)
Comment on the merits of the manpower requirement approach in educational planning.
Date posted:
March 13, 2018
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Answers (1)