IRR and NPV may give inconsistent results when 1) Never; IRR and NPV always give consistent results. O2) The cost of capital > IRR. 3) The cost of capital < IRR.
Q: If the number of employed people equals 185 million, the number of unemployed people equals 15…
A: The labour force participation rates is calculated as the labour force divided by the total…
Q: True/False< (1) If the assumptions of the first theorem of welfare economics apply and if the…
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 2, total…
A: a state where growth rate of output and capital is same over period of time is called steady state.…
Q: Assume the given general functional form; what is & in the following linear regression? Y=…
A: Option d - Error term/ residual
Q: Suppose that two candidates competing for political office must each choose a position from the set…
A: In game theory, a dominant strategy is one in which a player's optimum course of action is one…
Q: Suppose a U.S. dollar exchanges for 2 British pounds, then each pound is worth Group of answer…
A: An exchange rate is the rate at which currency will be exchanged for another currency. Currencies…
Q: A Los Angeles firm uses a single input to produce a recreational commodity according to a production…
A: The production function is a numerical condition calcupation the connection between the factors and…
Q: Given the following Multiple linear regression, where SHEL (Shell gas stock) price SHEL= 15-0.5…
A: Linear Regression gives and helps us to tell a linear relationship between the dependant and the…
Q: Exercise 3: merger example Algoma Steel Inc. and Stelco Steel Inc. Merger? Suppose you work at the…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Mia is a registered nurse. She has 18 hours per day to devote to labor or leisure, and has $20…
A: For maximizing utility, Mia has to select the combination of consumer goods and leisure that can…
Q: Consumer surplus is: a. the sum of quantity demanded and quantity supplied. b. the…
A: Consumer surplus is the area below demand curve and above price. Producer surplus is the area below…
Q: Question 2. AD-AS Analysis with an Alternative Policy Rule. This question will have you derive a…
A: The output gap would enter the fed's monetary policy because along with inflation targeting and…
Q: A recent hot issue in Ghana is energy. Suppose the demand for energy is described by Q-50-0.5P and…
A: Provided information: It is provided in the question that: Demand of energy: Q = 50 - 0.5P Supply of…
Q: 6. Suppose that there are two identical firms in the silver mining industry. The cost curve of each…
A: Firms engages in price and quantity competition to raise their profitability .Firms lowers their…
Q: Consider an AS-AD model for the U.S. Suppose an economic expansion in Mexico increases income for…
A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. Net…
Q: In markets that are not perfectly competitive, ________. A. minimum transfer price will equal the…
A: Perfectly competitive market refers to the market where many sellers exists in the market and firms…
Q: Describe the structure of the Fed's Open Market Committee (FOMC). What is this committee's primary…
A: The government's monetary policy includes open market operations as a weapon. It entails purchasing…
Q: The current spot exchange rate is $1.95/£ and the three-month forward rate is $1.90/£. Based on your…
A: An exchange rate is a relative price of one currency expressed in terms of another currency (or…
Q: For the cost and price functions below, find a) the number, q, of units that produces maximum…
A: Profit maximisation is the process by which firms guarantee that their output and pricing levels are…
Q: A telephone company, a restaurant and a hospital are companies that according to their economic…
A: When the production of services or goods takes places with the help of inputs or techniques , it is…
Q: The following table shows the relationship between the number of trainers working at the new gym (SD…
A: Marginal product is the change in total product due to an additional unit of input. Marginal…
Q: You and a friend are considering going in together to purchase a new table. However, they are…
A: Traditional and behavioral economics are almost the same concept merely one difference which…
Q: P Pm C a 0 b a b C Qm e Qc MR D MC Which area represents dead weight loss from a single-price…
A: A monopolist will produce where MR = MC MR is the marginal revenue MC is the marginal cost Dead…
Q: Market Market Q Market P 0 50 100 150 200 250 300 Firm Q 0 5 10 15 20 25 30 128 126 124 122 120 118…
A: Profit is the difference between revenue earned and cost incurred. Market profit is the summation of…
Q: Describe the relationship between union wages and employment. (Be sure to develop your essay into…
A: Definition of Labor Union and Employment: A labor union is a workers' cartel that bargains with…
Q: Figure: Rent Controls Rent (per period) Renta Rents Renta Rent, Rento x Qo Q Q Q Q Quantity of…
A: Price Ceiling is a type of price control used by government where government sets the maximum price…
Q: How many employees should Martin's farm employ? How many employees should Martin's farm employ if…
A: Marginal product of labor is the change in total product due to an additional labor hired.…
Q: Complete the following table to help you determine the poverty rate in Perkopia in 2004. To do this,…
A: Analyzing statistics regarding the distribution of income among the population can be one technique…
Q: Safeway sells water for $2 a bottle or $18 for a box of 12 bottles. This is an example of third…
A: Price discrimination is the situation when a sellers chargers different price for the same commodity…
Q: The Water Regulatory Agency is considering five mutually exclusive alternatives for providing a…
A: Benefit to cost ratio is calculated by using the following formula :- B-C ratio = Annual Benefit ÷…
Q: iscal Policy is conducted by:______________________, and Monetary Policy is conducted…
A: Fiscal policy is when the government uses taxes and government spending as a policy measure. It…
Q: Consider a pure exchange economy with two goods, z and y, and three consumers, 1, 2, and 3. The…
A: Walrasian Equilibrium: A Walrasian equilibrium is a set of prices of 2 goods, and a consumption…
Q: . xtreg In_annualco2emissions i.year unemployment_rate In_energyintensity, fe cluster (e > ntity_id)…
A: A regression equation or a model is the estimation of the relationship between dependent and…
Q: Row Player E C O N G 15, 28 0,2 7,23 92,4 Column Player A 110,0 31, 33 16, 1 40, 181 M 47,68 0, 1…
A: Method of iterated elimination of dominated strategy. Sometimes we can get Nash equilibrium by the…
Q: Which of the following products would likely be the most inelastic? Restaurant Meals O Clothing…
A: Elastic is a phrase used in economics to describe a shift in buyer and seller behavior in reaction…
Q: One argument often heard against using fiscal policy to tame the business cycle is that the lags…
A: A fiscal policy is one in which the government use taxes, spending, and borrowing as instruments to…
Q: Consider a pure exchange economy with two goods, z and y, and three consumers, 1, 2, and 3. The…
A: When demand for a good is more than supply of a good , it is known as excess demand .Excess supply…
Q: Select the correct answer from the terms provided to complete the sentences below. There are more…
A: Let X follows a uniform distribution which can take values within the interval [a,b]And we have:…
Q: Suppose that there is a perfectly competitive firm with the following cost data: Variable Cost…
A: Perfectly competitive market is a type of market in which there are many firms(seller) and consumer…
Q: How Cournot and Stackelberg models are different? In Cournot profits are zero and in Stackelberg…
A: Cournot competition refers to an economic model in which competing enterprises determine a quantity…
Q: 24. When a movie theater price discriminates, this leads to more customers lower prices higher…
A: Price discrimination refers to the policy under which different prices are charged for the same good…
Q: Which of the following would have an indifference curve drawn as a right angle? plastic containers…
A: Indifference curve is a graph which shows various combinations of two goods that give same level of…
Q: 2. Find all pure and mixed strategy Nash equilibria of the following game. X Y Z 4,2 0,0 0,1 0,0 2,4…
A: Game theory in economics is studied to analyze the pay-off received by the person from economic…
Q: If the inverse demand curve is p = 150-3Q and the marginal cost is constant at $12, how does…
A: Given Inverse demand function: p=150-3Q ....(1) The marginal cost of a monopoly firm…
Q: pe, the pr O two other friendly countries, which, in turn, are not sold gas by anybody else. These…
A: Answer - 3 The prices listed above do adhere to the rule of elasticities. According to the power of…
Q: Rania is a random relocation economy where each individual receives 200 units of goods when young…
A: Processes involved in moving a company have a significant impact on the local, regional, and…
Q: the raffle? Jaime has never won a raffle before, so she is likely to win this time. The raffle has a…
A: A utility function of a rational consumer describes the willingness to consume a particular…
Q: Suppose that a person’s wealth is $50,000 and that her yearly income is $60,000. Also suppose that…
A: A person’s wealth is $50,000 Yearly Income is $60,000 Money demand function is given by Md =…
Q: Buying U.S. Government securities on the open market
A: To enhance the total reserves the rate of interest should be higher so that the less amount of money…
Q: Discuss the concept of path dependence as it relates to the selection and implementation of…
A: Path dependence is the reliance of various economic outcomes on prior outcomes rather than solely on…
Step by step
Solved in 3 steps
- True/False AVC can fall even when MC is risingComplete Solution needed. A plant produces 300 units of equipment a month of Php 3,600 each. A unit sells for Php 4,800. The company has 10,000 shares of stock at Php 200 par value whose annual dividend is 20%. The fixed cost of production is Php 120,000 a month. a) What is the break-even point? b) What is the unhealthy point? c) What is the profit if production is 60% of capacity? (Specify if it is a gain or loss)TRUE OR FALSE: No need of long exlain 1. The longer the time before the revenues are received, the higher is the net present value of those revenues. 2. The more uncertain the future, the lower should be the discount factor in evaluating an investment. 3. In evaluating an investment, we do not discount the cost regardless of when the cost is incurred.
- You are working as an investment consultant in a firm. You have been provided data for the past 7 years in the Table 4 as follows: Table 4: Investment Data Yr. Investment (Rs. Millions) Returns (Rs. Millions) 1 185 17 2 128 37 3 75 63 4 98 54 5 155 36 6 63 72 7 112 36 Assume your client plans to investment 30 million rupees. Based on this data will you recommend your client to invest. Why or why not? Your recommendations must be supported by complete workings including model(s), relationships between variables (correlations, coefficient of determinations) and graphical visualizations (such as scatter charts).A pharmaceutical company has spent $500 million to date working on a blood pressure treatment. It has to decide whether to spend another $500 million today to get final approval from the FDA in two years. Once approved, expected profits will be $50 million per year for the foreseeable future. The firm’s cost of capital is 5%. -Should the firm proceed? (Hint: use the perpetuity formula used to value projects found in the readings to find the value of the profit stream that starts in two years, and then discount that.)A study by the New York Federal Reserve Bank concludes that an engineering bachelor’s degree generates approximately a 15% return on investment over the course of a decade. Suppose the typical engineering student spends $15,000 per year for four years on his/her education. What extra annual return (in dollars) does the typical student realize during the 10 years following graduation? State your assumptions.
- Question: Which of the following methods of capital budgeting accounts for the time value of money? Options: A) Net Present Value (NPV) B) Payback Period C) Accounting Rate of Return (ARR) D) Profitability Index (PI) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.With an interest rate of 15%, CREATE A CASHFLOW DIAGRAM and CALCULATE THE CAPITALIZE COST of a project with a Php 3,000,000.00 original cost and an extra Php 100,000.00 cost per 10 years. For the first four years, the yearly running cost will be Php 100,000.00, then Php 160,000.00. A substantial rework cost of Php 300,000.00 is also projected every 13 years. (Note: Answer in this sequence. GIVEN > REQUIRED > CASHFLOW DIAGRAM > SOLUTION > CONCLUSION OF FINAL ANSWER. CASHFLOW DIAGRAM IS REQUIRED)John invests 10000 of his savings into opening up a new coffee roasting company over the course of a year the new coffee roasting company earns him a 6% return on his investment if John had not invested his money in the coffee roasting company he could have earned a 5% return by investing the 10000 in the stock market instead thus he did 1% better in the coffee roasting company than he could have done on his alternative investment which kind of cost does this alternative investment represent opportunity cost average total cost fixed cost variable cost
- You may purchase 100 shares of Mun Tee ltd on a 55 percent margin when the shares are selling at K20 each. The Lusaka stock exchange broke charges you 10 percent annual interest,and commission are 3 percent of total stock value on both the purchase and the sale. If a year later you receive a K0.50 per share dividend and sell the stock for K27. What's your rate of return on investment?Please answer all the questions below and give a detailed solution. Please double-check before submitting the answer.Fill In The Blank Options Left to Right Top to Bottom:Saving or Investmentdecreases or increasesgreater or lesssurplus or shortageraise or lowerincreasing or decreasingincreasing or decreasingIf APC is constant, C and Yshould also be constant. True or False