110 3025 The profit function of a company is P(x) = =x+ - x3 x², the output that maximizes the profit is Select one: а. b. 55 С. 110 d. 600 е. 3025 f. None of the above
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- Assume P = 250 - 1Q and TC = 156 + 1Q2. What level of production maximizes profit? Enter as a value (round to two decimal places if necessary).SM 3. Consider the problem of Example 12.4.2. (a) Suppose that Q=f(L) = √L. Write down Eq. (*) in this case and find an explicit expression for L* as a function of P and w. Find the partial derivatives of L* w.r.t. P and w. Then verify the signs obtained in the example. (b) Suppose the profit function is replaced by л(L) = Pf (L) – C(L, w), where C(L, w) is the "cost function". What is the first-order condition for L* to be optimal in this case? Find the partial derivatives of L* w.r.t. P and w.Within its first three years, the 2012 Chevy Volt fell in value 62 percent to $12,997 in 2015. And a 2012 Nissan Leaf fell in value 66 percent to $10,220. That’s −22 percent a year, whereas the typical gasoline car depreciates −24, −15, and −12 percent its first three years (51 percent) for a −17 percent average per year. Indeed, at the extreme, a Honda Accord is worth fully 64 percent after three years (−12 percent average per year). Clearly, the steep decline in gasoline prices in 2014 contributed to electric-powered vehicles depreciating recently much faster than gasoline powered vehicles. But hybrid-electric vehicles such as the Nissan Leaf and Chevy Volt and all-electric vehicles such as the Chevy Bolt face another problem as well? 1.) What life cycle cost concept begins raising concerns by year 5 with any electric vehicle (EV)? If that issue affected resale value at year 5, would that affect perceived value-in-use? How exactly?
- only typed answer Consider the following information: Q = 22 L + 57 K PL=52, PK=3, P=28 and C=4763 What is the profit maximizing level of output?(a) Is there an arbitrage? Suppose an investment firm sells options. (b) What is the t=0 price (premium) of a call option on stock 2 with exercise price E=12? (c) What is the t=0 price (premium) of a put option on stock 1 with exercise price E=23? Suppose a start-up company wants to go public. The firm has total costs of $100,000 at date t=1 and sales of $120,000 in state 1, $230,000 in state 2, and $140,000 in state 3. The firm wants to issue 1,000 IPO shares. (A share is endowed with a cash flow right of 0.1% of the total profits of the firm.) (d) The underwriter suggests an IPO price of $40 per share. Will this IPO be successful, i.e. will there be a positive demand for the shares?Google share price is $1759.73; Microsoft share price is $223.72; and Apple share price is 118.69. Google has a P/E ratio of 34; Microsoft has a P/E ratio of 36.14; and Apple has a P/E ratio of 36.41. ______ is the most expensive stock and ________ is the least expensive stock to receive part of their earnings
- Tesla share price is $439.18; Netflix share price is $480.68; and Amazon share price is 3148.24. Tesla has a P/E ratio of 870.15; Netflix has a P/E ratio of 77.66; and Amazon has a P/E ratio of 92.20. ______ is the most expensive stock and _____ is the least expensive stock to receive part of their earnings.What is the value of the Lerner index for a company that has demand function Q = 220 - 4P and cost function C = 500 + Q^2? A. 1/19B. 1/9C. 1/4D. 1/2A company manufactures two products. If it charges price p1 for product 1 and price p2 for product 2, it can sell quantities q1 = 55 − 3p1 + 2p2 and q2 = 75 + 2p1 − 2p2 for products 1 and 2, respectively. It costs the company $20 to produce a unit of product 1 and $65 to produce a unit of product 2. How many units of each product should the company produce? What prices should it charge, to maximize profit? Suppose the company must produce a minimum of 20 units of each product. How many units of each product should the company produce in that case? What prices should it charge, to maximize profit?
- Clearly explain the Heckscher-Ohlin theorem and the Factor Price Equalisation(FPE) theorem using appropriate diagrams.A firm learns of an investment opportunity that will increase future revenue, two years from now, by $121 million. The marginal resource cost of the physical capital today is $100 million dollars. Should this firm make this investment at an interest rate of 10% Why? Using the information from this scenario a . What is the discounted percentage for this investment? What information does it provide? b . Other things being equal, could this investment be made at a higher interest rate? Lower? Why? c.Other things being equal, could this investment be made for a longer term? Shorter term ? Why?The timber rights to a tract of forest can be purchased for $250,000. The harvesting agreement would allow 25% of the timber to be cut in each of the first, second, fourth, and fifth years. The purchaser of the timber rights would be required to replant, at its expense, the logged areas in Years 3 and 6. Arrowsmith Lumber calculates that its profit in each of the four cutting years would be $90,000 and that the cost of replanting the harvested areas in each of Years 3 and 6 would be $30,000.a) Should Arrowsmith Lumber buy the timber rights if its cost of capital is 5.5%?b) By what amount would the economic value of Arrowsmith Lumber be increased or decreased if it proceeded with purchasing the timber rights for $250,000?