Q1: You are attending a championship soccer match with your family. In your pocket only $40 to spend on Popcorns(S) and Cokes (C), supposed to allocate such amount to maximize satisfaction of the two goods, where the price of popcorn is $5 and the price of coke is $4, looking at the table below:
Various levels of S and C MUs MUs/Ps MUc MUc/Pc
1 40 120
2 30 80
3 25 40
4 20 32
5 15 16
6 10 8
MUs = marginal utility of popcorn, Ps = price of popcorn
MUc = marginal utility of coke, Pc = piece of coke
Answer the followings:
- Fill up the blanks above?
- Find the combination of popcorns and cokes yields and the level of utility, subject to the budget constraint?
- Calculate the total utility of the optimal consumption of the two good?
- What is the marginal rate of substitution(MRS) in such case?
- State the budget equation in this case?
- Graph the budget line and an indifferent curve, showing the optimal point?
- What does the indifferent curve represent? How it relates to the indifference map?
- What is the level of marginal utility per dollar spent, where you get the maximization or the optimal equation of the two goods?
- The demand curve is derived from the marginal utility concept, explain?
- Can you classify this case as a corner solution? Explain?
Q2: Decided on open tailor shop, the following table gives the level of outputs(shirts) produced daily, with the least cost of input combinations (labor wage(w) = $300, and cost of capital, sewing machine(r) = $200) per day:
output Labor # Capital # Long run total cost (LTC) Long run average cost(LAC) Long run marginal cost(LMC)
100 10 7
200 12 8
300 20 10
400 30 15
500 40 22
600 50 30
700 60 42
Answer the followings:
- Fill up the blanks above?
- Write down the cost equation?
- State the total production function?
- Draw up the graph for LAC and LMC in relation to the output?
- Graph the Isoquant curve as well as the Isocost curve, with the optimal input combination?
- In this case, you are operating in competitive market, what are the characteristics of such market?
- At which price you are supposed to sell the shirt?
- Draw up the expansion path for outputs and costs in the table above?
- What is the approximate level of output(varies discretely by 100 units in the table), where profit is maximized and you are economically and technically efficient?
- What is the Marginal Rate of Technical Substitution (MRTS) in this case?
- Is the cost structure in the question long-run cost or short-run cost ones, what is the difference between the two, and how can they be related?
- There are many factors reduce costs, and shift LAC downtrend, identify three of them?
- At which level of output is the Minimum Efficient Scale(MES)?
- What kind of demand curve you are facing in this market?
- Is this competitive market, what is the economic profit, and should it be different in value from the opportunity cost? Explain?
Q3: Abdullah want to expand the capacity of his restaurant, but not sure of the 2020 economic growth (GDP) of the Saudi economy. He has the probability of 40% that the economy will maintain the expected growth rate in 2019 (1.8%) and the probability of 60% it will be little higher (2.1%) as the IMF forecasted. Accordingly, the table below is:
Growth rate 2.1% 1.8%
Probability Dist. 60% 40%
Profit Profit($Million) Profit($Million)
A. Decision maintain capacity 100 persons 3 2
B. Decision expand capacity by 20% 4 1
Answer the following:
- Compute the expected profits for both decisions?
- Based on the expected profit only, which decision should Abdullah make?
- Compute the Standard Deviation for decisions A and B, facing Abdullah?
- Which decision would Abdullah make, using the coefficient of variation?
- If Abdullah has no idea of the probability distribution of economic growth, operating in uncertainty world. Using the information above, what decision would Abdullah make, according to each of the following rules:
C. Minimax Regret:
D. Equal Probability:
- Which decision is riskier, and how can you classify yourself as risk lover or averter or neutral?
Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.
Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.
This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.
To be inviting and polite is indistinguishable, and politeness requires an insightful and amicable activity against others. Axioms are notable that gracious “pay of graciousness is the main thing to win everything”. Correspondence staff ought to consistently remember this. The accompanying standards may assist with improving courtesy:Preliminary considering correspondence with family All glad families have the mystery of progress. This achievement originates from a strong establishment of closeness and closeness. Indeed, through private correspondence these cozy family connections become all the more intently. Correspondence is the foundation of different affiliations, building solid partners of obedient devotion, improving family way of life, and assisting with accomplishing satisfaction (Gosche, p. 1). In any case, so as to keep up an amicable relationship, a few families experienced tumultuous encounters. Correspondence in the family is an intricate and alluring marvel. Correspondence between families isn’t restricted to single messages between families or verbal correspondence.
It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.
Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>