(d) List two important implicit costs that Jane has not included. (e) What is Jane's pure economic profit (loss)? What actions should Jane take based on her pure economic profit (loss)?
Q: The use of cannibus was legalized in canada in 2017. Lets assume that the cannibus in canada sector…
A: Marginal product in economics means the additional output or increase in production resulting from…
Q: Consider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the…
A: To calculate the rate of return,, 99, 254); position: relative; display: inline-block;">rate of…
Q: The Lesseig Company has an opportunity to invest in one of two mutually exclusive machines that will…
A: Machine AInitial cost=$9.4 millionAfter tax inflow=$4.4 million for 4 yearsAt end of the 4th year it…
Q: A baseball team has signed a draft pick to a two year contract. The player's expected marginal…
A: Sports economics is a branch of economics that investigates the monetary elements of the sports…
Q: a. A decline in the discount rate prompts commercial banks to borrow an additional $3 billion from…
A: Note: Since you have posted a question with multiple sub parts, we will provide the solution only to…
Q: Consider the following 2-player game with incomplete information U D L (0. y) (-1, y) R (1, 2) (0,0)…
A: According to the game theory concept's BNE, each player's strategy is optimal given their personal…
Q: What is the set of strategies for player 2? O ((AA). (A,B), (B,A), (B,B)) O ((A,A), (A,B), (B,A),…
A: The set of strategies for player 2 is as follows:Player 2 has two pure strategies in the expanded…
Q: -6000 -8000 The ACF and PACF shown above were calculated using data you have been asked to forecast.…
A: An economic time series' link between its past and present values is measured by the autocorrelation…
Q: Macmillan Learning Banks in Ruritania have a required reserve ratio of 5%. Round all answers to one…
A: The simple money multiplier, also known as the deposit multiplier or money creation multiplier, is a…
Q: Consider a consumer whose utility u: R² → R is given by u(x₁, x₂) = √√√√T₁+1√√/₂₂ where ₁, ₂ ≥ 0…
A: The utility function refers to all those commodity bundles that derive the same amount of utility…
Q: Romania and Georgia both produce shmoos, and are the only producers of shimoos. The market demand…
A: Global economics encompasses the investigation and evaluation of cross-national economic,…
Q: 0,0 Nature not Good Bad seller seller A Consumer n -1,0 -1.-5 4,10 advertise Select all true…
A: Game theory talks about the strategies that are applied to make the right decisions for the players…
Q: Suppose the money demand function is given by: M P = hye-ki where h and k are positive constants and…
A: Macroeconomic governance will remain critical since it determines how the economy will grow in…
Q: This problem examines the implications of allowing investment to depend on output. Suppose the…
A: At the equilibrium, the equilibrium output equals aggregate demand. Thus equilibrium output can be…
Q: Question 1: For the Solow model with human capital discuss what happens to the steady state values…
A: Solow-Swan model is used to study economic growth and the long-run behavior of economies over time.…
Q: 1. For each of the following scaling functions for a von Neumann-Morgenstern utility func- tion,…
A: The von Neumann-Morgenstern utility function highlights the utility while also including the risks…
Q: _____ theories of judgment and decision making describe how people should behave, as opposed to how…
A: In this case, we have to discuss the term normative, objective, unbounded and legitimate theories of…
Q: create a scipt about pollution as a social issue for a commercial video.
A: The introduction of hazardous materials or energy into the environment is referred to as pollution.…
Q: Ed's building company has the following production function: Q(L)-10LK-0.5L-K where Q is the number…
A: The production function is a mathematical representation of the relationship between the inputs a…
Q: 1. Referring to the graph above, an economic variable that had achieved the lowest point variable.…
A: Trough" a trough os the lowest point of economic activity during a recession or contraction phase.…
Q: 2) (20) Demand for widgets is a linear function of price. If the price of Widgets is set to $20,…
A: "As per our policy, we are providing you with the solution of the first three sub-parts. Kindly…
Q: Krysel Inc. is expecting a new project to begin producing cash flows at the end of this year. They…
A: It can be defined as the quantitative value or worth of an investment, asset, or any kind of project…
Q: Please continue to solve from Part d to Part e. Thank you
A: Time series data is a type of data where observations are recorded at regular time intervals, such…
Q: Discuss
A: The law of return to Scale is a concept in the theory of the firm, which examines how changes in the…
Q: Given the game with two playoff matrices G = (-_-_-²3 -4), H =(¯ 2). a) Find values of the games…
A:
Q: A start-up biotech company is considering making an investment of $100,000 in a new filtration…
A: Straight-line depreciation:Straight-line depreciation is a technique of consistently depreciating a…
Q: The inverse demand function for a furniture firm is P(x) = 15- X while the firm total cost is TC(x)…
A: A negative externality, in the context of economics, refers to a side effect or impact of an…
Q: 2) Which of the following statements regarding net income transferred to retained earnings is…
A: In the end of an accounting period, a agency calculates its net income, which is the total sales…
Q: Write an assessment report on how the COVID-19 pandemic has affected the South African economy and…
A: Evaluation report: impact of the COVID-19 Pandemic at the South African economy and GDP1.…
Q: Question 3 What are the names of the factor payments? Wages, interest, and profits. Wages and…
A: Factor payments are the payments made to the factors of production for their contribution to the…
Q: les. A WTO dispute settlement panel then decides that the US is guilty of violating the rules. Why…
A: It can be defined as the regulation or practices imposed by the government of a country That impedes…
Q: Consider the following one-sided labor search model. - Time is continuous, index by t = [0, ∞). -…
A: Unemployment refers to a situation in which individuals who are willing and able to work are unable…
Q: a. A popular national forest known for having dozens of access points for its well-used hiking…
A: The consumed products by the households, govts and sometimes firms are called goods.Goods can be…
Q: c. Determine the equilibrium price and quantity in this market. -quilibrium price: $ . Determine the…
A: Marginal private benefit (MPB) is the additional benefit that a consumer receives from consuming one…
Q: The production of fabric generates toxic effluents related to the dyes used. This is typically…
A: The social optimum output, also known as the socially optimal quantity, refers to the level of…
Q: (d) Use a first order condition to find the value of s that maximizes G(s). Call this value s*. (e)…
A: Cournot Duopoly is a classical model in economics that deals with a specific type of oligopoly,…
Q: You have decided to open a microbrewery selling university-themed beers as one of your product…
A: Initial capital=250,000 Annual expenses=100,000MARR=5%Time=5 years
Q: Problem 2 Consider the following method of dissolving a partnership. Two partners each own one share…
A: Symmetric equilibrium is considered a situation where most players choose to play a single strategy…
Q: Write detailed notes on participatory community economic analysis and the basic elements of…
A: Participatory community economic analysis (PCEA) is a system that includes attractive individuals of…
Q: Are gas prices high due to demand or supply in July 2023.
A: Gas prices is the cost of gasoline or petrol, which is common fuel used in automobiles and various…
Q: People interested in the study of bounded rationality study of how people ____ make decisions rather…
A: Bounded rationality is a concept in behavioral economics and cognitive psychology, which suggests…
Q: Consider a medieval Italian merchant who is a risk averse expected utility maximiser. Their wealth…
A: Income level=YChances of ship sink=50%Chances of the ship, not sink=50%Loss=L
Q: O Macmillan Learning Suppose the cost of lithium-ion batteries, an input into the production of…
A: In economics, the equilibrium price and quantity imply the point where the demand for a production…
Q: Big Top is the only circus in the nation. The graph shows its demand curve and marginal cost curve.…
A: Marginal Revenue (MR) : Marginal Revenue refers to the additional revenue earned by a firm from…
Q: Gambling decisions can be used to show ___ theories of decision making. 1. Normative 2. Creative…
A: In this case, we have to discuss the term gambling. Gambling is the type of betting on any kind of…
Q: suppose you have a fixed income of $3000 per month and you want to allocate your budget between two…
A: Monthly income (M)= $3000Price of good x (Px) =$10 per unitPrice of good y (Py)=$20 per unit.Budget…
Q: Consider the following game played by 80 people. S-14, 5, 6. 125). Payoffs are as follows. if s, is…
A: From pricing tactics and competitiveness to community engagement and conflict resolution, everything…
Q: The table below shows nominal and real GDP figures for a hypothetical economy, Nebula. Nominal GDP…
A: We have given the data of nominal GDP and real GDP with GDP deflator.The GDP deflator is calculated…
Q: The median earnings for a 25 to 34 year old, full-time, year round worker with a high school…
A: Earning of individuals from 25-34 years old:-Those with high school education=$31,830Those with…
Q: 4. Profit maximization and loss minimization Lagatt Green is a monopoly beer producer and…
A: Monopolist maximises profit by producing at a quantity level where marginal cost equals marginal…
Step by step
Solved in 4 steps
- Jane quit her job at IBM where she earned $50,000 a year. She cashed in $50,000 in corporate bonds that earned 10% interest annually to buy a mini-bus. Jane has decided to buy the mini-bus and set up a commuter service between Lincoln and Omaha. There are 1000 people who will pay $400 a year each for the commuter service; $280 from each person goes for gas, maintenance, insurance, depreciation, etc. What are Jane's total revenue? A. $600,000 B. $250,000 C. $400,000 D. $480You are in the train station waiting for your train to arrive. You see a vending machine from where youcan buy snacks and chips for $3.50. Posted on the machine is a sign saying: “Property of XYZVendsolutions Pty Ltd”. You insert the coins required into the machine and out comes a packet ofchips. However, when you open the packet of chips, you find bits of plastic inside and you don’t wantto eat the chips. You want your money back. With reference to the essential elements for the formation of a contract, explain:a) Did you enter into a contract in this scenario?words)b) If your answer is yes, with whom did you enter a contract?Assume I won 8 million dollars in a lottery. I could take my winnings in installments of 2 million dollars a year for four years or a lump sum of fewer than 8 million dollars. If I take the installments, my first installment would come the day I claimed my winnings at the state lottery office. Assume that the interest rate is 7% per year and that there are no taxes on the winnings. 1. Calculate what the lump sum should be so that it would exactly equal the present value of the stream of the future stream of installments from the lottery. You must show and explain the work. 2. What would your answer change be if the first installment in the question above did not come until one year after I claimed my winnings. You must show and explain your work.
- The football coach at a university was given a 5-year employment contract that paid $1,000,000 the first year (assume he receives his first paycheck at EOY1 and is paid once per year). The coach was guaranteed a 10% raise every year following. The day after he receives his first paycheck, he is fired. The university agrees to buy out his contract (pay him an equivalent sum to his remaining salary). How much did the university pay the coach if the time value of money is 8%? Please present the procedures of your calculation.Runer has donated $500,000 to endow a university professorial chair in BohemianStudies. If the money is invested at 8.5%, how much can be withdrawn each year, ad infinitum, topay the Professor of B.S.?K ces Jane quit her job at Telus where she earned $36,000 a year. She cashed in $40,000 in corporate bonds that earned 10% interest annually to buy a mini-bus. Jane has decided to buy the mini-bus and set up a commuter service between Maple Ridge and Vancouver. There are 300 people who will pay $800 a year each for the commuter service; $650 from each person goes for gas, maintenance, insurance, depreciation, etc. (a) What are Jane's total revenues? (b) What are Jane's explicit costs? (c) What is Jane's accounting profit? (d) List two important implicit costs that Jane has not included. (e) What is Jane's pure economic profit (loss)? What actions should Jane take based on her pure economic profit (loss)?
- Lewis’s management has been considering movingto a new downtown location, and they are concerned that these plans may come to fruition priorto the equipment lease’s expiration. If the moveoccurs then Lewis would buy or lease an entirelynew set of equipment, so management wouldlike to include a cancellation clause in the leasecontract. What effect would such a clause haveon the riskiness of the lease from Lewis’s standpoint? From the lessor’s standpoint? If you werethe lessor, would you insist on changing any ofthe other lease terms if a cancellation clause wereadded? Should the cancellation clause containprovisions similar to call premiums or any restrictive covenants and/or penalties of the type contained in bond indentures? Explain your answer.A rich folk singer has donated $500,000 to endow a university professorial chair in BohemianStudies. If the money is invested at 8.5%, how much can be withdrawn each year, ad infinitum, topay the Professor of B.S.?Our new computer system cost us $110,800. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10). Calculate the CCA and UCC values for five years. (Round your intermediate calculations and final answers to 2 decimal places. Omit $ sign in your response.) Year 1 2 3 4 5 A $ A A $ tA CCA 33240 Ending UCC 77560 What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate. (Omit $ sign in your response.) After-tax proceeds
- Gina has an opportunity to save $260 per month at an APR of 6.35% in a 401K plan through work. She plans to retire in 25 years. The income taxes are at 35% for her. (1) What are Gina's tax savings over the course of her investment? Review your course materials for help with this calculation. (Express your answer rounded correctly to the nearest cent!) 2$ Ikyou haven't answered the question correctly in 3 attempts, you can get a hint. Hint:Calculate the present value of an asset that pays $225 at the end of each year for 6 years and has a face value payment of $5006. 4 The equation P = -0.5(n-500)(n-10) describes a company's profit, P based on how many units, n are sold. Determine the maximum profit and the number of items that must be sold to reach that amount.