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Enterprise X has a production function in the form of Q = 4.5K0,5 0,5. The manager of this enterprise operating in England, Amanda Smith assumes
Enterprise X has a production function in the form of Q = 4.5K0,5 0,5. The manager of this enterprise operating in England, Amanda Smith assumes that enterprise X can be subject to perfect competition market conditions in England (P = 40GBP). Enterprise X procures its production factors from Pak = 20 USD, Pe = 55 Ruble. This enterprise has a financing of F = 25000 GBP and since it does not have the opportunity to borrow, it cannot use more than its financing. However, Amanda Smith received a 500-unit production order from France, and under the offer, business X had the opportunity to work with 150% profit. Determine which alternative will be evaluated by the X company that wants to keep its profits in GBP in HSBC London branch in terms of the profitability of these two alternatives (1 USD = 0.73 GBP 1 RUBLE = 0.01 GBP 1 EURO = 1.2 USD). Enterprise X has a production function in the form of Q = 4.5K0,5 0,5. The manager of this enterprise operating in England, Amanda Smith assumes that enterprise X can be subject to perfect competition market conditions in England (P = 40GBP). Enterprise X procures its production factors from Pak = 20 USD, Pe = 55 Ruble. This enterprise has a financing of F = 25000 GBP and since it does not have the opportunity to borrow, it cannot use more than its financing. However, Amanda Smith received a 500-unit production order from France, and under the offer, business X had the opportunity to work with 150% profit. Determine which alternative will be evaluated by the X company that wants to keep its profits in GBP in HSBC London branch in terms of the profitability of these two alternatives (1 USD = 0.73 GBP 1 RUBLE = 0.01 GBP 1 EURO = 1.2 USD)
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