Q: Your firm is contemplating the purchase of a new $540,000 computer-based order entry system. The…
A: Cash flow extracted from the regular business processes is the operating cash flow. It is one of the…
Q: suppose the the equilibrium real federal funds rate is 4 percent and the target rate of inflation of…
A: Economic equilibrium may likewise be characterized as the cost at which supply approaches demand for…
Q: According to neo-classical economics, if velocity is constant, the value of money falls when: Oa.…
A: The term velocity of money means the amount of circulation of a unit of money within an economy. It…
Q: In the last year there has been a significant increase in the inflation rate in Canada. Use the…
A: Introduction Transmission processes are indirect, according to Keynes. i.e., changes in the money…
Q: 1. Since a firm in monopoly sets its own price, we can write the price as a function of the quantity…
A: For a monopoly firm, demand curve is downward sloping and cost of production is MC=C
Q: Assume that the firm’s minimum average variable cost is £6.5. Should the firm continueoperating in…
A: Variable costs are such costs which are implied over variable factors such as electricity, labor…
Q: please answer part a-d using the data given below following data for Bacon County, Georgia, an area…
A: GDP(gross domestic product) is the total value(monetary value) of final goods/services produced in…
Q: Two firms are engaged in Cournot (simultaneous quantity) competition. Market-level inverse demand is…
A: Monopoly is the market condition where the supply of a particular good or product is controlled by a…
Q: Ms. Jones wants to make 10% nominal interest compounded quarterly on a bond investment. She has an…
A: Here "r" is the annual interest rate. The quarterly interest rate will be r/4 (i.e. 4 quarters per…
Q: Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly…
A: Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly…
Q: (b) Alice and Bob are playing a game of chance consisting of repeated rounds in which each has an…
A: Because both Alice and Bob have an equal chance of winning, the odds of Alice winning a round are…
Q: How do markets operate to bring product into existence? How does that relationship affect supply…
A: All societies necessarily create economic choices. Society requires to make choices about, what…
Q: Bacon County, Georgia, an area that produces only two products: Pizza and Coke. Year Pizza Produced…
A: GDP is the value of final goods and services produced in the economy within a given period of time
Q: an economy where the various components of expenditure follow these equations: C = 10 + 0.8Yd I =…
A: A) Y= C+I+G+(X-M) Y= 10+0.8Yd+500+100+(300-0.1Y) Y= 10+0.8(Y - T)+500+100+(300-0.1Y) Y= 10+0.8(Y -…
Q: (a) Consider a firm that is particularly interested in estimates of elasticities. It discovers that…
A:
Q: Suppose in T-country, some people would like to migrate to S-country. Those people who would like…
A: The Solow Growth Model is defined as a model of economic growth, which studies the changes in the…
Q: What is the equilibrium price for waffles in this market? What is the equilibrium quantity for…
A: The equilibrium charge is the best charge in which the plans of purchasers and the plans of…
Q: Consider a market given by the following supply and demand equation: MC=1+5Q WTP=97-3Q If the…
A: A price floor is a type of price control, imposed by the government. A price floor is a minimum…
Q: d) Consider a demand curve given by P = AQ 0.25 where P and Q represent price and quantity demanded…
A:
Q: Find the uniform annual amount that is equivalent to a uniform gradient series in which the first…
A: We have First year-end payment P1 =6800 Second year-end payment = 6550 Third year-end payment =6300…
Q: decision making to those in
A: Business decision making depends on the rule that individuals settle on judicious decisions with the…
Q: A small VolP provider borrowed $1.5 million for new equipment and repaid the principal of the loan…
A: The information given is as follows:- Loan amount = $1.5 million Interest paid = $225,000 Time…
Q: What characteristic of public goods makes it very difficult for private firms to provide (or provide…
A: There are basically four types of goods i.e. private goods, public goods, club goods, and common…
Q: A commercial fisherman notices the following relationship between hours spent fishing and the…
A: Hours Fish (pounds) 0 0 1 10 2 18 3…
Q: 3. Consider the following table that presents the labour requirements for production in the East and…
A: Given, Labor requirements for production in the West and East (labors hours per unit of output):…
Q: Question 14 Becky is a corporate account manager at a company that sells athletic equipment to other…
A: Given information: Becky receives a monthly salary of $2000 plus commission on any new sales. Last…
Q: If a country is experiencing a budget deficit and the government reduced spending, resulting in a…
A: The situation that occurs when there is excess expenditure over revenue that impacts the financial…
Q: Mary, a law student in a University, wants to buy a book on Negotiable Instruments. To do this, she…
A: Given:i)Fixed cost=Rent of oven+Rent of baking panFixed cost=1,400+300Fixed cost=P 1,700ii)Variable…
Q: A firm is considering whether to purchase or lease land-moving equipment. The data associated…
A: Leases are typically easier to get and have more flexible terms than equipment advances. This might…
Q: A competitive firm has a single factory with the cost function C(q) = 3q2 + 62 and produces 25 units…
A: Marginal Cost is the amount of money that firms or producers of a good incurs or spends on the…
Q: Suppose in T-country, some people would like to migrate to S-country. Those pcople who would like…
A: The Solow Growth Model is defined as a model of economic growth, which studies the changes in the…
Q: The fixed cost element for the firm is a. $11,250 b. $10,250 c. $12.250
A: Mixed costs have a nature of fixed costs as well as variable costs. They have a certain fixed…
Q: 5/ Solve the following payoff matrix to find the best strategies and the value of game: BI B2 Al 8…
A: The given game is a zero same game where row player is a maximiser of its own payoffs and column…
Q: Estimates for a project appear in the following table: Estimates optimist most likely pessimist…
A: In the fields of economics and finance, the worth of a projected income stream as of the date of…
Q: Given the information in the table below, what is country A's real aggregate product in B$ at…
A: The Aggregate Product function is defined as the function which portrays the total output of the…
Q: earns an annual interest rate of 2.75%.
A:
Q: Each of 1,000 identical firms in the competitive peanut butter industry has a short- run marginal…
A: Equilibrium in the market occurs where demand and supply are equal
Q: Ôn the following graph, use the green point (triangle symbol) to shade consumer surplus in the…
A: The curve that depicts various quantities of goods and services being produced in an economy at…
Q: 5. The price of trade Suppose that France and Denmark both produce oil and stained glass. France's…
A: A country has a comparative advantage in production of a good when it is able to produce the good at…
Q: What kind of business is a travel agency? What problems are solved with the help of a travel agency…
A: 1. A travel agency is a private merchant or government agency that offers tourism and travel related…
Q: Question four A firm's production technology 40 = 10K0310.7 and capital costs K3 per week while…
A: "The cost minimizing input combinations of capital K and labor L occurs at a point where the ratio…
Q: An analyst for FoodMax estimates that the demand for its "Brand X" potato chips is given by: InQx =…
A: Given; Demand function; InQXd=10.34-3.2InPX+4PY+1.5InAX Where; QX=QuantityPX=PricePY=Price of a…
Q: Your classmates from the University of Chicago are planning to go to Miami for spring break, and you…
A: Personal budgeting requires discipline. Individual choices on spending for loved ones can…
Q: What are the relevance of intercultural communication to Technological Process Globalization?
A:
Q: Find the multiplier effect, when the consumer spends 0.6 and save 0.4 of every 1 SAR of extra income…
A: Information we have is that for every SAR of extra income the consumer spends 0.6 and saves 0.4
Q: Use the green point (triangle symbol) to shade consumer surplus in Cambodia before China's clothing…
A:
Q: Consider an open economy with floating exchange rates under the Mundell-Fleming framework. Discuss…
A: LM curve shows the direct relationship between interest rate and output. The LM curve is upward…
Q: 21) The indivisible reserve of savings and credit cooperatives is NOT covered by COSSEC insurance.
A: Insurance is a contract in which the insured agrees to regularly pay a specified amount to the…
Q: The Canadian economy produces a vast array of goods and services, trom cars to cannabis Suppose that…
A: In an economy, GDP is the sum of the components of aggregate demand that are consumption, net…
Step by step
Solved in 2 steps with 1 images
- Smith Manufacturing is a major player in the lawn sprinkler business. Their high-end sprinkler is used commercially and is quite popular with golf course greens keepers. In producing these sprinklers Smith’s fixed cost (CF) is $50,000 per month with a variable cost (cv) of $10 per unit. The selling price for these high-end sprinklers is described by the equation p=$90 – 0.2(D). a) What is the optimal volume of sprinklers? b) Does Smith make a profit at that volume? Thank you.What can you say about negative and positive gross margin in sensitivity analysisSmith Manufacturing is a major player in the lawn sprinkler business. Their high-end sprinkler is used commercially, and is quite popular with golf course greens keepers. In producing these sprinklers Smith’s fixed cost (CF) is $50,000 per month with a variable cost (cv) of $10 per unit. The selling price for these high-end sprinklers is described by the equation p=$90 – 0.2(D). a)What is the optimal volume of sprinklers? b)Does Smith make a profit at that volume?
- Suppose we know that p=1,056– D/5, where p = price in dollars and D = annual demand. The total cost per year can be approximated by $1,000 + 2D2 . a.Determine the value of D that maximizes profit. b.Show that in part(a) profit has been maximized rather than minimized. c. Find the maximum profit Show handwritten solutions.A producer of certified organic fresh basil leaves gets the yield presented in the table below based on weekly working hours. From experience, he knows he will harvest many pounds as he increases the working hours as shown in the below table. This producer is a price taker. Because of the quality of his fresh basil, he contracts his production with a top restaurant at $14.0 per lb. while paying $ 28 per working hour. The total fixed cost is $65. Weekly Working hours (input) Change in input used Yield in lb. (TPP) Change in TPP APP MPP Total Revenue Product (TRP) Total factor cost (TFC) Profit MRP MFC 0 0 10 32 20 68 30 108 40 144 50 176 60 196 70 212…A business executive is offered a management job at Generous Electric Company, which offers him a 5-contractyear that calls for a salary of $62,000 per year, plus 600 shares of GE stock at the end of the 5 years. This executive is currently employed by Fearless Bus Company, which also has offered him a 5-year contract. It calls for a salary of $65,000, plus 100 shares of Fearless stock each year. The Fearless stock is currently worth $60 per share and pays an annual dividend of $2 per share. Assume end-of-year payments of salary and stock. Stock dividends begin one year after the stock is received. The executive believes that the value of the stock and the dividend will remain constant. If the executive considers 9% a suitable rate of return in this situation, what must the Generous Electric stock be worth per share to make the two offers equally attractive? Use the future worth analysis method in your comparison.
- Hw.146. Please set up an Excel spreadsheet, and show your work within the spreadsheet to complete the solution. 1. The demand for LED 60 Watt light bulbs sold at Home Depot can be shown by D(p) = -9p+750 where (p) is the quantity sold in hundreds and p is the price per bulb in dollars A. State the Revenue function for the LED bulbs. (Insert a text box in your spreadsheet.) B. Home Depot incurs fixed cost of $4000 and variable costs of .03 per bulb. Home Depot knows that to be competitive the bulbs must not exceed a price of $9.00 each. How much should the bulbs be sold so that Home Depot breaks even? C. What is Home Depots profit if it sells the bulbs for $7.50 each3 Your company plans to raise price on product A by 5% per year. Due to competition, sales volume from product A is expected to decline at 10% per year. Revenue will be $5M for this year. Alternatively, based on the projection from the marketing department, you may reduce the sales volume decline from 10% to 5% if the price is kept unchanged. The product will be discontinued at the end of year 5 for both scenarios. If the firm's TVOM is 10%, Determine the revenue cash flow streams for both alternatives. What is the Excel financial function to compute PW of the revenue streamsBVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.
- Once the break-even point has been reached, net income will increase by the unit contribution margin for each additional unit sold. True or false?A company has a production capacity of 500 units per month and its fixed costs are P250,000 a month. The variable costs per unit are P1,150 and each unit can be sold for P2,000. Economy measures are instituted to reduce the fixed costs by 10 percent and the variable costs by 20 percent. Determine the old and the new break-even points. What are the old and the new profit at 100 percent capacity?Pure gasoline has an energy density of 115,600 BTU per gallon while ethanol has an energy density of 75,670 BTU per gallon. If gasoline costs $3.50 per gallon, (a) what would the cost of pure ethanol have to be in order for the energy costs of the two fuels to break even? (b) What would the price of E85 (85% ethanol, 15% gasoline) have to be for its energy cost to be the same as that of pure gasoline?