For a present sum of $660,000, determine the annual worth (in then-current dollars) in years 1 through 8 if the market interest rate is 10% per year and the inflation rate is 5% per year. The annual worth is $
Q: The demand for a factor of production is called a derived demand because it is derived from O A. a…
A: Derived demand is the demand that is derived from demand from some other commodity. For eg: you want…
Q: The conventional view that economics takes on cheating is that one decides to cheat when there is a…
A: The most well-known reàson students say of dishonesty is to use àll the time they get. Fortunàtely…
Q: You own a 5-year bond that has a face value of $1000 and pays 10% interest each year. Two years…
A: Answers ace Value of bond=F=$1000 Annual Interest=1000*10%=$100 Time left to maturity=n=5-2=3…
Q: 3. Total cost is the a. amount a firm receives for the sale of its output. b. fixed cost less…
A: In a market, total cost is associated with the production of goods and services by a firm as it is…
Q: Wage, productivity -W, wage VMP, productivity Seniority a) Wage, productivity W= VMP b) Seniority…
A: Value of marginal product or VMP refers to the measure of the amount of revenue that is contributed…
Q: A man bought a lot worth P1,000,000 if paid in cash. On the installment basis, he paid a down…
A: Simple Interest basically refers to a way of calculating interest on a particular principle amount…
Q: Economic growth is defined as the percentage change in O a) population. O b) price level. O c) real…
A: Economic growth refers to increase in income.
Q: Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a…
A: A perfectly competitive market refers to the market in which there is a large number of buyers or…
Q: The Central American country of Belize is one of approximately 14 Caribbean community countries that…
A: Speculating is a financial term that refers to purchasing an asset with the expectation that its…
Q: A price-discriminating monopoly O is illegal cannot offer discounts sells a larger quantity than it…
A: When talking about the monopoly firm, it can be said that it has the opportunity to set the price of…
Q: Fill in the blanks. Suppose the annual saving rate is 10 percent, population growth is 3 percent per…
A: Given Information - Saving Rate(s) = 10% Population growth rate (n) = 3% Depreciation (d) = 4%…
Q: Economic growth is determined by a) population, birth rates, and death rates. b) resources,…
A: Economic growth is the increase in price adjusted value of goods and services produced by an…
Q: In the long-run, perfectly competitive firms produce at the point where P = ATC MR = MC P = MC All…
A: A perfectly competitive market is a market structure where there are many buyers and sellers selling…
Q: 14. A manufacturer produces certain items at a labor cost of P115 each, material cost of P76 each…
A: Given Labor cost per item = P115 Material cost per item = P76 Variable cost per item = P2.32 Price…
Q: Mission Hotel has an average of 80 customers per hours arrive the front desk waiting have 5 to 7…
A: A cost basically refers to the amount of money that must be paid for anything. In other words, it is…
Q: Part 1 of a 2-part question: Suppose the market demand and supply curves for "rental housing" are:…
A: Equilibrium is determined whete demand is equals to supply.
Q: Quantity Marginal Benefit Marginal Cost 1 $50 $2 $45 $15 $39 $16 4 $5 $21 $-18 $38 Using the above…
A: Marginal cost is defined as the cost which is incurred by the producer in order to produce one more…
Q: regulate production · Each individual works for his own success Pure Communism • Government does not…
A: In capitalism, the main variables and choices are left to the market conditions to determined. It is…
Q: NEXI quest Use the figure to the right to answer this question. Mary is the only veterinarian in a…
A: In monopoly, the point of profit maximization is MR = MC, where, Marginal Revenue Marginal Cost
Q: Let P, >0 and P>0 be the price of good A and Good B Respectively. Let I> 0 where I belong to income.…
A: Given:
Q: Output (gall ons of ice cream per hour) Total cost (dollars) 1 1 3 3 4 8. 11 The Jerry - Berry Ice…
A: Fixed cost is the cost at 0 output and average fixed cost is the fixed cost divided by output.
Q: Colluding firms, compared with competing firms, usually a. earn less economic profit. b. welcome new…
A: Collusion occurs when rival firms agree to work together – e.g. setting higher prices in order to…
Q: You are to receive $ 400,000 exactly 5 years from now. You do not want to wait for the money and…
A:
Q: What would you expect the relationship to be between selling a high-risk product and a low-risk…
A: When talking about personal selling, it is the form of business in which an individual or am…
Q: Revenue and cost (dollars per unit) 50 MC ATC AVC 40 30 20 10 io 20 30 40 50 Output (units per day)…
A: Economic Profit:- The disparity between the money a corporate enterprise receives out of its…
Q: Which of the following is not an administered rate? a. Discount rate b. ON RRP offering rate…
A: At the marketplace, a rate will be considered as an administrative rate when it is set by the…
Q: All else being equal, when foreign incomes fall, U.S. aggregate a) demand will shift to the right. O…
A: Aggregate demand curve shows negative relationship between price level and real output.
Q: Let us consider the case of Venezuela. A tariff is imposed on imported clothes in Venezuela. In the…
A: Solution:- Quantity of clothes produce before the imposition of tariff = 15532 The quantity produce…
Q: Suppose Ming spends his entire income on two goods, X and Y, has "standard-looking" indifference…
A: We have two goods X and Y where price of good X falls
Q: 1. Sid is the CEO of a local power plant operating in monopoly market structure. a. Explain why the…
A: A monopolistic market is one that meets all of the requirements for a pure monopoly. A monopoly…
Q: An increase in government expenditure shifts the. curve to the Select one: Oa. LM/right b. LM/left…
A: IS curve shows the inverse relationship between interest rate and quantity. It means as the rate of…
Q: Use the graph below to answer the following question: MC ATC Mdles APC Cope Cs Asigents 71 los CI…
A: For a perfectly competitive firm price are given.
Q: Which of the following sequence of events follows an expansionary monetary policy? A) rt =It = ADI…
A: A). An expansionary monetary policy means increasing the money supply in the economy faster than…
Q: Q 1/ Given a random variable having the normal distribution with u=16 and o?=1.5625. Find the…
A: We have mean value 16 and standard deviation 1.25
Q: Price and cost (dollars per burger) 5.50- 5.00- MC АТС 4.50- 4.00- 3.50- 3.00- MR 2.50- 250 50 100…
A:
Q: Price/Cost per egg MC 12 ATC 8 MR3 AVC 6. MR2 MR1 Quantity 100 200 300 400 he market price per egg…
A: A perfectly competitive firm is a price taker in nature, i.e., it takes the price determined by the…
Q: 8. The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for…
A: Total Cost = Total Fixed Cost + Total Variable Cost Breakeven implies where the profit is 0 and the…
Q: Q (6) If the average cost function for a particular economic project is as follows, find: a. The…
A: Marginal cost is the additional cost that is incurred in the production of additional units of the…
Q: Identify the services provided by banks and financial institutions for their business customers.
A: Financial institutions are defined as those companies which are engaged in dealing with financial…
Q: In the neoclassical model, low inflation is good because Select the correct answer below: O it…
A: The neo-classical model revolves around the concepts of market demand and supply and believes that…
Q: 1. Which of the following statements regarding price discrimination is false? In order to capture…
A: Price discrimination refers to the selling strategy which is used by the monopoly firms in which it…
Q: The set of lines below reflect information about the cost structure of a firm. Use the figure to…
A: The expenses that are being incurred for carrying out transactions of business and also running it…
Q: b. What is the equilibrium price sellers receive, equilibrium price buyers pay, and equilibrium…
A:
Q: For a Saturday matinee, adult tickets cost $7.50 and kids under 12 pay only $5.00. If 110 tickets…
A:
Q: With the Keynesian content, when the marginal propensity to consume is 2/3, a cut in taxes of $120…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: uppose you want to withdraw $1500 every 6month from an account that's pays 14% interest compounded…
A: Given 6-Monthly withdraw amount A= $1500 Rate of interest = 14% compounded twice a year or…
Q: Q (7) If the functions of the total revenues and total costs of a particular economic project are as…
A: Total revenue is the addition of total profit and the total cost. Total cost is the difference…
Q: Which of the following statements concerning profit-maximizing firms in long-run equilibrium is…
A: A firm maximizes profit by producing at a point where marginal revenue is equal to marginal cost
Q: Let preferences of both individuals be given by log(ci)+ log(c). Suppose that the endowment vectors…
A: Market supply of both the goods are the sum of endowments.
Q: The following maintenance alternatives are considered for a new assembly line that has an a cost of…
A: Expected life = ∑Probability *Life Regime Service life by probability Expected Life 0…
Step by step
Solved in 2 steps
- Well-managed companies set aside money to pay for emergencies that inevitably arise in the course of doing business. If a commercial solid waste recycling and disposal company puts 0.5% of its after-tax income into such an account, how much will the company have after 7 years, provided the company’s after-tax income averages $15.2 million per year? The inflation and market rates are 5% per year and 9% per year, respectively.Aquatech Microsystems spent $183,000 for a communications protocol to achieve interoperability among its utility systems. The company uses a real interest rate of 15% per year on such investments and a recovery period of 5 years. (a) What is the annual worth of the expenditure in future dollars at an inflation rate of 6% per year? (b) Write a single-cell spreadsheet function to display the correct AW value.Please solve => For a present sum of $880,000, determine the annual worth (in then-current dollars) in years 1 through 4 if the market interest rate is 13% per year and the inflation rate is 5% per year. The annual worth is $ ______?
- A European-based cattle genetics engineering research lab is planning for a major expenditure on research equipment. The lab needs $5 million oftoday’s dollars so it can make the acquisition 4 years from now. The inflation rate is steady at 5% per year. (a) How many future dollars will be needed when the equipment is purchased, if purchasing power is maintained? (b) What is the required amount of the annual deposit into a fund that earns the market rate of 10% per year to ensure that the amount calculated in part (a) is accumulated?For many years, college cost (including tuition, fees, room, and board) increases have been higher than the inflation rate, averaging 5% to 8% per year. According to the College Board’s Trends in College Pricing, the average total costs in 2015 dollars were $19,548 for students attending in-state 4-year public colleges and universities and $43,921 for students at 4-year private colleges and universities. Assume an additional $4000 per year for textbooks, supplies, transportation, and other expenses. Using a 7% per year inflation rate, (a) how much can a sophomore high-school student expect to spend on in-state tuition, fees, room, and board for the freshman year (3 years from now) at a 4-year public university, and (b) what is the estimated total cost for the second year at the university, if textbooks, supplies, etc. also increase at 7% per year?Assume you save $6000 each year starting this year until your planned retirement 40 years from now. The buying power of the money in terms of today’s dollars at the market interest rate of 10% per year and inflation rate of 5% per year is closest to: (a) $377,200 (b) $605,350 (c) $1,318,150 (d ) $2,655,550
- Find the annual worth equivalent in actual-dollars from year 1 to 8 of an investment of $28,000 now, if the inflation rate is 5.5% and the inflation-free interest rate is 15% per year.Assume the market interest rate is 8% per year and inflation averages 5% per year. calculate the perpetual equivalent annual worth in future dollars for years 1 through ∞ for an income of $65,000 now and $5000 per year thereafter.A father wants to save in advance for his eight-year-old daughter's collegeexpenses. The daughter will enter the college 10 years from now. An annualamount of $20,000 in today's dollars (constant dollars) will be required to support her college expenses for four years. Assume that these college payments will be made at the beginning of each school year. (The first payment occurs at the end of 10 years.) The future general inflation rate is estimated to be 5% per year, and the interest rate on the savings account will be 8% compounded quarterly (market interest rate) during this period. If the father has decided to save only $500 (actual dollars) each quarter, how much will the daughter have to borrow to cover her freshman expenses?(a) $1,920(b)$2,114(c) $2,210(d)$2,377
- A very generous grandfather is planning to leave his only granddaughter well off when she reaches the age of 25. He plans to deposit a lump sum now, which is her 2nd birthday, such that she will have enough money to live comfortably without working for a salary. He wants her to receive an amountthat will have the same purchasing power as $2 million today. If he can invest the money and earn an average market interest rate of 8% per year while the inflation rate averages 4% per year, how much must he deposit now?You just made an investment in an insurance policy that is guaranteed to pay you $2.3 million 20 years from now provided you live that long. What will be the purchasing power of that amount with respect to today’s dollars if the market interest rate is 8% per year and the inflation rate stays at 4.7% per year over the 20-year period? The purchasing power of this amount is $ .You just made an investment in an insurance policy that is guaranteed to pay you $2.3 million 20 years from now provided you live that long. What will be the purchasing power of that amount with respect to today’s dollars if the market interest rate is 8% per year and the inflation rate stays at 5.1% per year over the 20-year period?