Consider the following sensitivity analysis results: Single Factor being Changed Original Estimate Breakeven Value Investment cost $200,000 $230,000 Annual revenue $750,000 $660,000 Annual expenses $500,000 $550,000 Order the factors from most sensitive to least sensitive. Investment Cost least sensitive Annual revenue most sensitive Annual expenses in the middle
Q: 5. Determine the capitalized cost of an expenditure of P 200,000 at time 0, P 25,000 in years 2…
A: Given: Cost at time 0=200,000 Interest rate=12%
Q: ou are asked to perform a hypothesis test that population proportion is different from 0.35. Which…
A: The alternative hypotheses do not contain equal signs. We are asked to perform a hypotheses test…
Q: What monetary policy should do to increase employment in a country, use paragraphs and graphs(AD…
A: Monetary policies are related to balance the money supply and demand within an economy. If we…
Q: An externality arises when one economic agent's actions affect the welfare of others in ways that…
A: There are two externalities that can be considered here, either it can be positive externalities or…
Q: For the demand function Q = 700 – 7P + 3A +0.008Y2 where P is the price of the good, A is the…
A: Positive cross price elaticity implies that goods are substitutes and positive income elaticity…
Q: Discuss the social and economic implications of subsidising the transportation industry.
A: A good transportation system helps expand the goods market. It can also facilitate the…
Q: Briefly explain why quantifying sk is important to decision making Why is it important to quantity…
A: Risk refers to probability of occurrence of unexpected event.
Q: What is the importance of THE NORTHWEST PASSAGE to international trade?
A: The Northwest Passage (NWP) is a shipping transportation route that interfaces the Pacific and…
Q: Diminishing marginal utility means that as more of a good is consumed, A. more income is spent. B.…
A: The correct answer is given in the second step.
Q: An individuals utility function is given by U = 340x1 + 960x2 + 2x1x2 – 2x – x;/2, - - when the…
A:
Q: A monopolist's demand curve: O is perfectly elastic. O is the same as the market demand curve. O is…
A: A monopoly is defined as a market structure in which there is only one seller, due to which it…
Q: (9) Suppose the market for tennis shoes has one dominant firm and five fringe firms. The market…
A: Q=400-2P Dominant firm's MC = 20 MC = 20+5q
Q: The graph above represents Aruna's situation. Pottery Plus has two rival firms. Aruna is convinced…
A: The correct answer is given in the second step.
Q: How to construct a Ad, SRAS and LRAS curve for economy with.. full employment Economic boom A…
A: LRAS is vertical at full employment. There is an economic boom when more than full employment output…
Q: Economics Question
A: The Federal Bank conducts monetary policy using Federal Open Market Operations through the buy and…
Q: A monopoly is operating at a quantity where average total cost is $70, marginal revenue is $50, and…
A: In a monopoly, a firm maximises profit at a point where marginal revenue is equal to marginal cost.
Q: Suppose that the City of Nairobi is planning a bid to host the 2032 Olympics and Kas estimated the…
A: Given Estimated benefits at the end of 1st year =$300 million Estimated benefits at the end of 2nd…
Q: Two individuals, Blair and Anton, derive utility from leisure and from the other goods (OG) they…
A: Concepts: 1) A substitution effect refers to when an increase in price results in a consumer…
Q: Pessimism (suggestion: draw the AS-AD diagram to help your analysis and start with the long-run and…
A: Equilibrium in the AD-AS model occurs at the intersection of AD and AS curves.
Q: Eastlandia's GDP in 2021 is $17353. Governmerit budget deficit in 2021 is $68.2. Government debt at…
A: When the government borrows from the market in order to fund its spending causes a budget deficit.…
Q: (10) Two firms compete by choosing price. Their demand functions are Qi = 20 – P1 + P2 and Q2 = 20 +…
A: Due to symmetry of demand and cost functions we can use one firms results for another firm.
Q: Oswald Odd consumes only goods 1 and 2. His utility function is U(x1, x2) = (x1x2) + min(x1, x2).…
A: The correct answer is given in the second step.
Q: Alice and Bob are playing a repeated game in which a certain stage game is played twice in…
A: It is given that: Alice has 4 pure strategies and Bob has 3 pure strategies in the stage game
Q: workca wr your groop. 4. Draw a budget line for Lynne, who has a weekly income of 225. Assumte that…
A: Income = $225 Cost of food = $15 Cost of clothes = $25
Q: The graph below shows the daily demand for entry into the downtown core of a major city by commuter…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: The figure below shows a monopolistically competitive market for a fictional brand of shampoo called…
A: In a monopolistic competitive market, profit is maximised at a point where marginal revenue is equal…
Q: One of the following statements about the theory of economic games is not correct. Select the one…
A: Game theory basically refers to the study of how interacting decisions of economic actors generate…
Q: Discuss the Urbanization in the Philippines and Land Reform.
A: Urbanization is that the process by which cities expand and increasingly large portions of the…
Q: i $600 today. Zaggy's idea will pay off $690 next year for certain. ose that Zaggy has no savings to…
A: All A,B,C part solved below,
Q: Eastlandia's GDP in 2021 is $18229. Government budget deficit in 2021 is $64.2. Government debt at…
A: When government spending is larger than taxes, then the government budget is in deficit. When…
Q: Assume Saudi Arabia to be home and US to be the foreign economy. Suppose that the real exchange rate…
A: Real Exchange Rate = Nominal Exchange Rate (Domestic Price / Foreign Price ) E = e (P /P*) e = E…
Q: Inflation Unemployment If the Phillip curve shows that unemployment is low and inflation is high in…
A: The correct option is d. If the Phillip curve shows that unemployment is low and inflation is high…
Q: How and why will switching from a flexible to fixed exchange rate regime affect exports as a…
A: It is the rate at which one country's currency may be exchanged for another. For example, if one…
Q: the following table to answer the next question. Output Total Cost 0…
A: Total cost is the sum of fixed cost and variable cost.
Q: 10) There is only one bar at a beach, i.e. this bar is a monopoly. A typical customer has the demand…
A: A monopoly is a single seller who charges a higher price above the marginal cost by producing less…
Q: y = (3 - x)6 + 7 apply the function in economic optimization concept
A: Function refers to the equation where the relationship between two or more variables are given. Some…
Q: For the net cash flows shown, find the external rate of return with a reinvestment rate of 15% per…
A: Given:- Investment rate=15% To calculate:- External rate of return=?
Q: Refer to Pessimism. How is the new long-run equilibrium different from the original one? O 1) both…
A: Due to pessimism, consumers will cut down their purchases of major items. This will lead to a fall…
Q: In most markets, independents are the most common form of retailer. Why is this the case?
A: There are various types of market where Retailer , wholesale sale their products either homogeneous…
Q: 2. Jack is the owner of the only local bar in a small town. He sells whiskey in one-ounce glasses.…
A: Adam's demand function: yA=16-2p Burt's demand function: yB=8-p P = 4 .
Q: You are consultant at large international consultancy (“PharmCons”), specialized in consulting…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, I will be…
Q: The occurrence of financial crowding out implies that: Short-run fiscal expansion increases the…
A: The crowding out effect occurs when higher interest rates cause a decrease privately investment…
Q: #4 Use the IS-MP model to show what happens when the Federal Reserve raises the federal funds…
A: Disclaimer: Since you have posted multiple questions, I am providing you with the answer to the…
Q: (11) Assume two firms with the same constant average and marginal cost, AC= MC= 5, facing the market…
A:
Q: Suppose that we can describe the world using two states and that two assets are available, asset K…
A: Future Price refers to the price of an asset in the future. It is usually predicted using the…
Q: Nicanor's passion is good wine. If the prices of the other goods are constant, Nicanor's demand for…
A: Substitution effect refers to that component of change in demand of a good which is not a…
Q: Given the future and developments in health, are the benefits more significant than the costs that…
A: In an economy, government make expenditure on various sectors, such as education, infrastructure,…
Q: ordered from poorest to richest, and Y is the cumulative percentage of income, then equality of…
A: For Gini Coefficient we need to find are A & Area (A +B ) . Where , area A =ar (A + B) - arB…
Q: The demand curve faced by a monopoly firm is given by the function P 58500- 8.9Q What is the…
A: TR = P*Q MR = dTR/dQ And slope of MR is ..
Q: Let S represent the amount of steel produced (in tons). Steel production is related to the amount of…
A: Given input prices W=50 and r= 100
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- I am in possession of two coins. One is fair so that it lands heads (H) and tails (T)with equal probability while the other coin is weighted so that it always lands H. Bothcoins are magical: if either is flipped and lands H then a $1 bill appears in your wallet,but when it lands T nothing happens. You may only flip a coin once per period. Theinterest rate is i per period. You are risk-neutral and thus only concern yourself withexpected values (and not variance). For simplicity, in the questions below assumeyou will live forever.1. How much are you willing to pay for such a coin that you know is fair? 2. How much are you willing to pay for such a coin that you know is weighted? 3. I currently own the coins and know which is fair and which is weighted, but youcannot tell which is which. You may make an offer to purchase a coin of yourchoosing, which I am free to accept or reject. What is the most you are willingto offer? Explain how you arrived at this answer.Which decision rule is most concerned with downside risk? A) Expected monetary value B) Maximax C) Maximin D) None of the aboveYour firm uses a continuous review system and operates52 weeks per year. One of the SKUs has the followingcharacteristics.Demand 1D2 = 20,000 units>yearOrdering cost 1S2 = $40>orderHolding cost 1H2 = $2>unit>yearLead time 1L2 = 2 weeksCycle@service level = 95 percentDemand is normally distributed, with a standard deviation ofweekly demand of 100 units.Current on-hand inventory is 1,040 units, with no scheduledreceipts and no backorders.a. Calculate the item’s EOQ. What is the average time, inweeks, between orders?b. Find the safety stock and reorder point that provide a95 percent cycle-service level c. For these policies, what are the annual costs of (i) holdingthe cycle inventory and (ii) placing orders?d. A withdrawal of 15 units just occurred. Is it time to reor-der? If so, how much should be ordered?
- Give me correct andswer with poper calculation and full explanation otherwise i give multiple down vote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.2.4.1 Total Cost in Material SelectionIn many cases, economic selection among materials cannot be based solely on the costs ofmaterials. Frequently, a change in materials will affect the design and processing costs, and shipping costsmay also be altered.Care should be taken in making economic selections between materials to ensure that anydifferences in shipping costs, yields, or resulting scrap are taken into account. Commonly, alternativematerials do not come in the same stock sizes, such as sheet sizes and bar lengths. This may considerablyaffect the yield obtained from a given weight of material. Similarly, the resulting scrap may differ forvarious materials.In addition to deciding what material a product should be made of, there are often alternativemethods or machines that can be used to produce the product, which, in turn, can impact processingcosts. What could be the factors affecting the cost of materials that one should consider?During your first month as an employee at Engro. Industries (a large drill-bit manufacturer),you are asked to evaluate alternatives for producing a newly designed drill bit on a turningmachine. Your boss’ memorandum to you has practically no information about what thealternatives are and what criteria should be used. The same task was posed to a previousemployee who could not finish the analysis, but she has given you the following information:An old turning machine valued at $350,000 exists (in the warehouse) that can be modified forthe new drill bit. The in-house technicians have given an estimate of $40,000 to modify thismachine, and they assure you that they will have the machine ready before the projected startdate (although they have never done any modifications of this type). It is hoped that the oldturning machine will be able to meet production requirements at full capacity. An outsidecompany, Descon Engg. Inc., made the machine seven years ago and can easily do the…
- In net present worth analysis over a period, if the net present worth value is equal to zero, the initial investment ______ a. has not produced profits b. has no certainty of gians c. has been fully account by the operation d. has a tendency to produce more losses e. has been applied with correct interest A company invests on selling computer units worth Php 32,000.00. The probability of maintaining this price throughout the year is 65% while that of less or more than 10% the expected are 15% and 20%, (a) what is the probability that the selling price for that year is more than the expected price? a. 0.8 b. 0.85 c. 0.25 d. 0.2 e. 1 f. 0.15 g. 0.65If specific duty is $2 per dozen and ad valorem duty is 20%, find the total duty on 12 dozen padlocks valued at $650.A. Modified TRUE of FALSE. Write T if the statement is TRUE and CHANGE the underlineword if the statement is FALSE. _______________5. Transportation and Communication are central to the development of any society and its economy.
- Assume that you are the team leader of strategic planning and advisory board of M/S XYZ company. The company has decided to enter the market with a new electronic product. Your team conducted a marker research and presented the following two strategies along with the necessary data. Delete Strategy A: Build a large plant with an estimated cost of 20,00,000 Rials. This alternative can face two states of nature on market conditions: High demand with a probability of 0.70, or a low demand with a probability of 0.30. If the demand is high, the company can expect to receive an annual revenue of 5,00,000 Rials for 7 years. If the demand were low the annual revenue would be only 1,00,000 Rials. Strategy B: Build a small plant with an estimated cost of 10,00,000 Rials. This alternative also faces two states of nature: High demand with a probability of 0.70, or a low demand with a probability of 0.30,lf the demand is high the company can expect to receive an annual revenue of 3,00,000 per annum…The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): state of nature low demand medium demnad high demand Decision alternative s1 s2 s3 manufacture d1 -20 40 100 purchase d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. a. Use expected value to recommend a decision. b. Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand.The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): state of nature low demand medium demnad high demand Decision alternative s1 s2 s3 manufacture d1 -20 40 100 purchase d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. a. A test market study of the potential demand for the product is expected to report either a favourable (F) or unfavourable (U) condition. The relevant conditional probabilities are as follows: P(F|S1)=0.10 P (U|S1)=0.90 P(F|S2)=0.40 P (U|S2)=0.60 P(F|S3)=0.60 P (U|S3)=0.40 A.Compute the probabilities by completing the table Sate of…