An annuity is set up that will pay $1,700 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 6%? OA. $12,512 OB. $7,507 OC. $17,517 OD. $15,014
Q: the players have the same set of actions, i.e. A₁ = A2, and payoffs are sym- metric: u₁(a1, a2)…
A: Nash equilibrium is a concept in game theory that describes a situation in which each participant in…
Q: suppose the government of a desert community wants to punish excessive water useage, where…
A: Managing a Budget and Making Decisions: When making decisions about what to spend their money on,…
Q: A courier service company wishes to estimate the proportion of people in various states that will…
A: The objective of this question is to find the probability that the sample proportion will differ…
Q: Find the Average Fixed cost if the Total Fixed cost is 500 and the total number of unit made is 10?
A: Calculate the Average Fixed Cost (AFC) when the Total Fixed Cost (TFC) is $500 and the total number…
Q: Assume that a price ceiling of $80 has been implemented and there are wasteful lines and search…
A: Price ceiling:It is a situation when government changes the prices of goods and services to maintain…
Q: urgent
A: The objective of the question is to calculate the sum of squared errors (SSE) for the given sequence…
Q: Hugo views donuts and coffee as perfect complements: He always eats one donut with a cup of coffee…
A: An Engel curve is a graphical representation used in economics to illustrate the relationship…
Q: Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant…
A: The term O.C. describes the value of the next best alternative forgone when a decision is made. It…
Q: A surplus results when
A: This can be defined as a concept that shows the summation of the surplus of both parties that…
Q: Global streaming projected market size 2018 to 2026 ($bn) 120 Revenue ($bn) 100 80 60 40 20 0 42.2…
A: Business economics requires making decisions and allocating resources in complex market scenarios.…
Q: Gomez runs a small pottery firm. She hires one helper at $12,000 per year, pays annual rent of…
A: The owner of the pottery firm hires a helper at $12000 per year.The annual rent for the shop is…
Q: What did the McKinnon and Shaw predict about the movements of interest rates once financial markets…
A: Financial concealment insinuates measures by councils to channel resources for themselves as a form…
Q: Describe the differences between free market and collectivist societies.
A: A market is a structure or system where buyers and sellers interact to trade products, services, or…
Q: urgent i will 5 upvotes
A: The diagram represents the production possibility frontier (PPF) between souvenirs and restaurant…
Q: Duncan Multinational Corporation is a global manufacturer and distributor of household appliances.…
A: Economic analysis is the methodical way to deal with determining the optimum utilization of scarce…
Q: Two players are bargaining over a three period bargaining model as discussed in class with player 1…
A: Nash equilibrium: It is a sub-topic of game theory in which players play games and use strategy and…
Q: grapn possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band…
A: The PPF is also referred to as the production possibility curve (PPC). It is a key economic concept…
Q: utility function
A: The price constraint range constraint represents the boundaries or constraints that individuals face…
Q: Explain briefly the intuition behind the fundamental theorems of welfare..
A: The central issue welfare economics expects to address is deciding under what conditions individual…
Q: Q.21 Options A. Q.22 Which of the following statements is/are FALSE? The interest rate parity theory…
A: A. The interest rate parity theory says that the interest rates on similar assets in two countries…
Q: Refer to the accompanying graphs for a competitive market in the short run. What will happen in the…
A: A perfectly competitive market is one in which a big number of enterprises sell similar products to…
Q: risk averse managers
A: Low-threat managerial techniques typically talk over with tactics followed by way of corporations to…
Q: Suppose you win on a scratch-off lottery ticket and you decide to put all of your $2,500 winnings in…
A: Reserve requirement implies the amount of money that banks and other depository institutions are…
Q: Consider a second-price auction to sell an object in which there are 5 bidders. Recall that in a…
A: Game theory describes an equilibrium known as a Nash equilibrium, in which all participants have no…
Q: The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer,…
A: IRR is regarded as one of the most important Capital Budgeting Techniques.Internal rate of return is…
Q: a) state the maximization problem solved by each type of agent and derive the fist order and second…
A: In economics, intertemporal decision-making refers to a decision-making approach that involves…
Q: Refer to Figure 6-10. What is the price buyers will pay after the tax is imposed" a. $8.00 O b.…
A: Tax is an essential payment that is made to the authorities for the intake of goods and offerings…
Q: 6. Calculate and report the Purchasing Power Parity (PPP) exchange rate between the PNS and the USD.…
A: PPP exchange rate is the value of the currency in the domestic market that is converted into the…
Q: QUESTION 7 Assume the following is the budget equation for Courtney who spends her income between…
A: Consumers make choices to maximize their satisfaction or utility(U). Consumers face limited…
Q: Typed plz and asap thanks Wrong answer not accepted take Care of pilgrisim
A: The objective of the question is to understand the impact of global oil prices on a country's…
Q: Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with…
A: The concept of P.W. can be explained as a financial concept used to evaluate the value of future…
Q: Six years ago, an 80-kW diesel electric set cost $150,000. The cost index for this class of…
A: The production of a cost estimate for a new project is based on the construction cost information…
Q: (Graph: Consumption) Based on the information provided in the graph, at an income level of $300,…
A: Marginal Propensity to Consume (MPC): The MPC measures the change in consumption resulting from a…
Q: Only typed solution
A: The objective of the question is to find the Maximum Likelihood (ML) estimator of θ, the Fisher…
Q: Based on 1. the government imposes a 2-dollar tax on each 2. unit sale of x. (a) What is the new…
A: The utility function represents relationship between the utility and commodities consumed.
Q: Consider the following model of consumption and health. A household lives for two periods and its…
A: Decision-making across time periods, known as intertemporal choice, relies on resource allocation.…
Q: Suppose there is a recession and income per capita declines. Use supply and demand diagrams to…
A: A normal good: A good is said to be a normal good if its demand increases as the consumer's income…
Q: Use the line drawing tool to show this change in prices by drawing a new budget constraint for the…
A: A budget constant it may be defined as the ability of the consumers to buy a particular goods and…
Q: Ethan spends all his income on procuring STATA(S) and Microeconomics textbook (T). His preferences…
A: The objective of the question is to understand Ethan's consumption behavior for STATA (S) and…
Q: What is the main goal of redistribution policies in welfare economics? A. To increase government…
A: The optimal allocation of resources that affects economic well-being is referred to as welfare…
Q: Ocean water contains 0.9 ounce of gold per ton. Method A costs $230 per ton of water processes and…
A: Given information:Ocean water contains 0.9 ounces of gold per ton.Method A costs $230 per ton of…
Q: A scientist claims that 7% of viruses are airborne. If the scientist is accurate, what is the…
A: The objective of this question is to find the probability that the proportion of airborne viruses in…
Q: level LRAS SRAS1 * AD₁ Y₁ = Real GDP potential (Figure: AD-AS Model II) Refer to Figure: AD-AS Model…
A: The AD curve depicts the total quantity(Q) of services and items demanded in an economy at various…
Q: A certain task can be performed by the executive, working alone, in 4 hours. If he delegates the…
A: Costs can be categorized into fixed costs (remain constant regardless of production levels) and…
Q: The company Cielito S.A. It manufactures clothing for older adults and has a large presence in…
A: Productivity is a measure of the efficiency of a person, machine, factory, system, etc., in…
Q: Choose the correct term for the definition: Government debt instruments issued by the United States…
A: The issue introduced is a multitude of decision-making questions that require distinguishing the…
Q: Show the impact of the increase in government purchases on the interest rate by shifting one or both…
A: Money demand(MD) is the money amount that individuals and businesses are willing to hold for…
Q: Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long…
A: The production function is given as The production function exhibits a return to scale and the…
Q: At a price of $2.28 per bushel, the supply of a certain grain is 7100 million bushels and the demand…
A: Here we have to find out the equation demand, equation of supply and equilibrium point.The…
Q: P2 PI O A decrease in input prices O An improvement in technology 02 O An increase in input prices…
A: The issue is to recognize the most probable reason for the shift in the equilibrium price from $1 to…
Step by step
Solved in 3 steps with 1 images
- The sole proprietor of the FM2 Financial Services, Bondo, receives allaccounting profits earned by her firm and a K28,000-a-year salary she pays herself. Itis noteworthy that she also has a standing salary offer of K35,000 a year if she agreesto work for Bank of Zambia. If she had invested her capital outside her own company,she estimates that would have made a return of K22,000 a year. Further, informationhas reached you that last year, Bondo’s accounting profit was K50,000. Calculate hereconomic profit?A share of stock currently costs $35. You can purchase either the shares, or options to buy the stock anytime this year at $38.50. These options cost $0.75 per. What price must the stock rise to this year to make the stock options equally profitable (meaning equal capital gain) to purchasing the stock? (Assume you exercise the options/sell the stock at this price.) What price must the stock rise to this year to make purchasing the stock options 6 times as profitable (meaning 6 times the capital gain) as purchasing the stock?Fatima is an owner of a building and she can lease her building for 100,000 AED per year for two years. The explicit cost of maintaining the building is 30,000 AED, and the implicit cost is 50,000AED. All revenues are received, and costs borne, at the end of each year. If the interest rate is 10 percent, determine the present value of the stream of Accounting Profits? Economic Profits?
- Compute the price of a share of stock that pays a $5 peryear dividend and that you expect to be able to sell inone year for $40, assuming you require a 5% returnWhich of the following investment options willmaximize your future wealth at the end of 18 years?Assume any funds that remain invested will earn anominal rate of 12% compounded monthly.(a) Deposit $8,000 now.(b) Deposit $120 at the end of each month for thefirst 12 years.(c) Deposit $105 at the end of each month for 18years.(d) Deposit a lump sum in the amount of $35,000 atthe end of year 12.8. Question 1 Fatu took out an endowment policy. The first annual payment was Rx, whereafter it increased yearly by R1 700. After 20 years the policy paid out R1 005 962. The applicable yearly interest rate is 10%. The value of x is approximately A. R11 816. B.R17 564. C.R6 500. D.R564. Question 2 Daniel asks to reschedule the compensation in three payments,the first payment now ,the second payment twice the size of the first payment for four years from now and the third payment three times the size of the first payment nine years from now.The boxing fund agrees on condition that the interest rate changes to 10.95% per year compounded monthly .The amount to the nearest hundred rand that Daniel can expect to receive four years from now is A R 864 000 B.R 557510 C.184 800 D.369 600
- Question 8 Dr. John buys stock in a foreign company that has a yield of 28% but the inflation rate is 6%. The effective rate of return is most nearly: Oa 24% Ob.21% O<.18% Od 20%Susie Lee won a lottery. She will have a choice of receiving $25,000 at the end of each year for the next 30 years, or a lump sum today. If she can earn an annual return of 10 percent on any investment she makes, what is the least she should be willing to accept today as a lump-sum payment? (Round to the nearest hundred dollars.) Use the NPV as you have equal cash flows of $25,000 for the next 30 years.Question 4 The equivalent rate of interest for a discount rate of 10.5% for 60 days is 104.9825%. Hint: An interest rate r and discount rate d are said to be equivalent if these two simple rates give the same present value for an amount due in the future. Thus, r = d/(1 - dt) and d = r/(1 + rt)
- Use the definition of the effective rates of interest and discount. j=[Amount at s+t - Amount at s] / [Amt at s]. d_j=[Amount at s+t - Amount at s] / [Amt at s+t]. For 8 items c & d, if j (d_j) is nominal then effective interest (resp. discount) every mth of a period is j^(m)/m (resp. d^(m)/m).The Rosy company, is planning to start an egg packing factory in the country of Bevery. The initial investment for the egg packing factory is $5Million and it will generate net revenues for every year for the next 10 years starting as $1M in the first year, and increasing by $0.5Million every year (e.g, 1M, 1.5M, 2M, 2.5M...). Currently £1 is equal to $20. However, the $ is being devalued (losing value) against the £ by 12% every year (so next year £1 will be $22.4 ). If Rosy company has a MARR of 30% in Bevery, what is the PW of this egg packing factory in £?An owner can lease her building for $150,000 per year for three years. The explicit cost of maintaining the building is $50,000, and the implicit cost is $65,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of: a. Accounting profits. $ b. Economic profits. $