Homework #1 APEC 5020
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APEC 5020
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Homework #1 (100 points)
For homework #1 solve the following problems in the corresponding excel file. Upload your completed assignment as a pdf file on canvas. Be sure to attach a pdf of your completed excel file to your submitted homework file to show your work. (Note: showing your work is required for this assignment, also copying your excel work and pasting it as a picture to a word file first before converting it to a pdf will help get all your work on one page). Homework is worth a good amount of points in this course so be sure to take your time and double check your work. If you get stuck, recorded lecture five: rolling out a new product works through similar
problems in excel. I have changed the parameters from that class so your answers should be different but the process will be the same.
Section 1:
First tab of the excel file, real prices, drift rates, and projections
1. On the first tab of your excel file, you will find historical prices for alfalfa and consumer price index data across years. Use CPI to convert your nominal alfalfa prices into real alfalfa prices. Use 2020 as your base year.
What is the real price of alfalfa in 2014?
2. Once you have calculated the real price of alfalfa for all of the years (2001-2020) calculate the percent change in real prices from year to year. Remember that you will lose your first observation (cell E4). Write the formula you used to calculate % change in real prices.
3. What was the percent change in real prices from 2004-2005? 4. Once you have calculated the percent change for each year, calculate the drift rate to find the average real price change across all years. What formula do you use to calculate the drift rate?
5. What is the drift rate in real alfalfa prices between 2001-2020?
6. Move further down the first tab to the projection part of the assignment. Now that you have calculated the historical drift rate you can use that to make predictions about future alfalfa prices. Assume real prices today (year 0) start out at where they were last year $125 per ton. (if your nominal price for 2020 doesn’t match your real price for 2020 you did something wrong). Use the drift rate you calculated to estimate the future price for years 1-4 into the future. What formula would you use to estimate the future price t years in the future?
7. What would you predict real alfalfa prices to be 4 years in the future (cell B38)?
Section 2:
Second tab of the excel file estimating marginal cost and calculating optimal outputs levels of output.
8. Open the second tab in your excel file. Assume that the only variable input to the product being produced is labor and that wages are $11/hr. Calculate variable cost for all levels of production. What is the variable cost when 10 hours of labor or used?
9. Use your calculations for 8 and your given fixed cost of $500,000 to calculate total cost for all levels of output. What is the total cost associated with 3,000 units of output?
10. Calculate Marginal cost for each additional unit of output. What formula would you use to calculate marginal cost?
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- WebCampus |x Course MesON 1021 X * MindTap - Cengage Learning x 2 MindTap Cengage Learning x O Meet-wd yras-aks x 4 O https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=598281236560221612301640424&elSBN=9780357133606&id%3D1380087454&snap. a * CENGAGE MINDTAP << Search thi News Analysis: Border Security Tradeoffs Adjust the following graph to illustrate the effects of implementing such measures. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will Tools snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. (7) ips ps 80 АСT p! The 30 60 90 120 TOURISM (Millions of visitors) (? 67°F Cloudy o search hp fyo inse 10 4+ 144 * 2$ 4 %3D 8. R|| Y U P LO %24 %23 SECURITY (Percent of terrorists caught)arrow_forwardI was wondering what the letter D through G was thank you.arrow_forwardcek 3 - Chapter 23 Interactive Book: Mea X MindTap - Cengage L X A Homework (Ch 23) * MindTap - Cengage L x n/static/nb/ui/evo/index.html?deploymentld%3D5981412232614779684085777463&elSBN=9780357133576&id=1316675399&snapshotld%=2635884& CENGAGE MINDTAP Q Searci Homework (Ch 23) Consider a simple economy that produces two goods: pens and muffins. The following table shows the prices and quantities of the goods over a three- year period. Pens Muffins Price Quantity Price Quantity Year (Dollars per pen) (Number of pens) (Dollars per muffin) (Number of muffins) 2018 1 150 160 2019 2 135 4 230 2020 110 4 165 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Dėflator Year 2018 2019 2020 72% 64°F Sunnyarrow_forward
- MindTap-Cengage Learning X /static/nb/ui/evo/index.html?deploymentld-58326557198082800211662038eISBN=9781337914413&nbld-3236996&snapshotld-3236996&id=16: Courses My Drive - Google...MyHarper | Students CENGAGE MINDTAP Aplia Homework: Demand, Supply, and Markets WAGE (Dollars per hour) 20 18 16 14 12 10 8 6 4 2 0 X 0 • I Supply I I T Demand I I II I || 1 50 100 150 200 250 300 350 400 450 500 LABOR (Thousands of workers) In this market, the equilibrium hourly wage is S H Graph Input Tool Market for Labor in the Fast Food Industry Chapter 4 HW Flashcards | Quizle X + Wage (Dollars per hour) Labor Demanded (Thousands of workers) and the equilibrium quantity of labor is Search L pe U 8 8 Suppose a senator introduces a bill to legislate a minimum hourly wage of $8. This type of price control is called a 300 Labor Supplied (Thousands of workers) thousand workers. O 3 D 200arrow_forward8:49 il LTE https://undergrad.unilus.app/pluginfile... O ... Combination 2 Combination 3 Country B Efficient Attainable Unattainable Inefficient Combination 1 K M N Combination 2 R Combination 3 T U (22 Marks) b) Which country has an absolute advantage in production of wine? Justify your answer with empirical evidence. (2 Marks) c) Which country has an absolute advantage in the production of clothes? Justify your answer with empirical evidence. (2 Marks) d) Which country has a comparative advantage in the production of wine? Justify your answer with empirical evidence. (4 Marks) e) Which country has a comparative advantage in the production of clothes? Justify your answer with empirical evidence. (4 Marks) f) If both countries specialize in the production of the item they are good at, draw the PPF for the condition where trade can take place. (6 Marks) (TOTAL: 40 MARKS)arrow_forwardEconomies of Scale Please helparrow_forward
- Compare the assembly line in China to that in San Francisco along the following dimensions : ( 1 ) volume or rate of production , ( 2 ) required skill of the workers , ( 3 ) level of automation , and ( 4 ) amount of raw materials and finished goods inventoryarrow_forwardHomework (Ch 09) * MindTap - Cengage Learning x + atic/nb/ui/evo/index.html?deploymentld=58830023220612202193347127562&elSBN=9781337622349&id=D908491136&snapshotld=19375308& CENGAGE MINDTAP Homework (Ch 09) Suppose Ginny gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays and therefore has some market power. Assume that she does not incur fixed costs, and the only significant variable cost to Ginny is her time. As she gives more haircuts, Ginny must increasingly forgo other valuable Saturday activities. For example, if she gives one haircut, she forgoes reading the paper after breakfast. If she gives two haircuts, she gives up reading the paper and sleeping an extra half-hour. Ginny's clients are a varied group willing to pay between $16.00 and $28.00 for a haircut. Assume that Ginny cannot price discriminate, i.e., charge different clients different prices. If Ginny charges $28.00 per haircut, she will have one client per week; if…arrow_forwardriversity - Welcome to My. X Homework (Ch 16). x MindTap - Cengage Leaming à ng.cengage.com/static/nb/ui/evo/index.html?deploymentid=5981412232614779684085777463ISBN=9780357133576&id=1456476913&snapshotld=2884466& ristopher Lee v * CENGAGE MINDTAP y Home Homework (Ch 16) C ourses Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. Catalog and Study Tools (2 Rental Options College Success Tips 500 Career Success Tips 450 OMMENDED FOR You Monopolistically Competitive Outcome 400 350 SQUAT Quadrip Gluteus Maximus Erector Spinae 300 Profit or Loss 250 achine Exercises: Lower 200 ody 150 ATC Machine 100 e Help 50 "MC O Give Feedback MR Demand 100 150 200 250 300 350 400 450 s00 QUANTITY (Bikes) Given the profit-maximizing choice of output and price, the shop is making v…arrow_forward
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