1.A small industry produces two items, 1 and 2. It operated at capacity and makes a profit of $6 on each item 1 and $4 on each item 2. The following table gives the hours required to produce each item and the hours available per day.

item 1 item 2 hours available

assembly 2hrs 1hr 100

packaging 1hr 1hr 60

what is the number of items that should be produced each day to maximize profits? what is the maximum daily profit?

2.Is economics a science

3.How do you find out how many products a firm should produce if it sells its products in a perfectly competitive market structure and the market price is $50? You are given the following information: If you produce 0 units total costs (TC) are $25, 1 unit TC is $65, 2 units $95, 3 units $140, 4 units $195 and 5 units $255.

4.How do you know when to shut down a firm or continue with product

5.Consider the following hypothetical market. The equilibrium price is $10 and the equilibrium quantity is 20 units. The own-price elasticity of demand is -0.5 and the own-price elasticity of supply is 0.75. If price increases from $10 to $12, what will be the new level of quantity demanded?

6.What is the difference between multiplying and dividing and multiplying percentages with 1 added to the percentages and not

r_{local currency} =

(1 + r_{foreign currency}) x (1 + Expected inflation_{local currency} 1 + Expected inflation_{foreign currency}) - 1

vs.

Country risk premium = Country default spread x (_{equity country bond})

7.The following schedule of funds is available to form a sinking fund. Current year

(n). $50,000

n+ 1 $40,000

n+2. $30,000

n+3 $20,000

At the end of the fourth year, equipment costing $250,000. 00 will have to be purchased as a replacement for old equipment. Money is valued at 20% by the company. At the time of purchase, how much money will be needed to supplement the sinking fund?

8.P^S=10+Q^S

P^D=100-2Q^D

If the government imposes a per-unit (excise) tax in this market, what is the maximum tax revenue that the government can collect?

9.If we have a labor market characterized by the following equations Ld=-1+115 Ls=2W+16. What is the equilibrium wage and quantity of workers?

10.In economics money is not considered as capital