If you were given the responsibilities of an economic advisor to Nikita Khrushchev of the Soviet Union. How would you, as a central planner, decide what, how, and for whom to produce goods and services in a country of roughly 123 million people at the time? How successful your plan would be?
A) Joe won a lottery jackpot that will pay him $12,000 each year for the next ten years. If the market interest rates are currently 12%, how much does the lottery have to invest today to pay out this prize to Joe over the next ten years? b) Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the
What is the difference between economic and accounting profits?
What are the necessary conditions for a perfectly competitive market?
A company wants to prepare a demand curve for its product that it is selling. How would it get the information to prepare the schedule? How could a company prepare a demand curve for a new product that has not been seen by the public?
One question involves Y=C+G+I+NX. GDP, GNP another one involves: savings and investments (See attached file for full problem description)
In the country of Leducistan, nominal GDP fell but real GDP rose. Explain how this is possible.
Jockey Co. has a cost of equity capital estimated to be 15%. They have a current dividend of $3 per share and analysts expect the dividend to grow at a rate of 25% a year for the next 3 years, and then it will grow at a constant rate of 10% per year. What is the current stock price of Jockey Co.?
Given the following schedules: Debt/Assets Cost of Debt Cost of Equity Cost of Capital 0% 7% 14% 10 7 14 20 7 14 30 8 14 40 8 16 50 10 18 60 10 20 a. What is firm's cost of capital at the various combinations of debt and equity? b. What is the firm'
There is a firm that has pricing control of its output and is able to identify its consumers into two groups. The total quantity demanded for its output is the summation of the quantity demanded by the two groups, therefore Qtotal = Q1 + Q2 where Qtotal is the total quantity demanded, Q1 is the quantity demanded by group 1, and
I cannot find any help in the textbook for this problem. As I'm taking an online course, finding alternative forms of help proves difficult. Here's the problem: Mud Construction Co. is considering buying new equipment with a cost of $625,000 and a salvage value of $50,000 at the end of its useful life of ten years. The equi
Suppose a firm faces a cost function of the form : C (y) = 8 + 4y + y ^ 2 a) What is the firm's fixed cost, FC? b) What is the firm's variable cost, VC? c) What is the formula for the average cost, AC? d) What is the formula for the average variable cost, AVC? e) What is the formula for the marginal cost, MC? f) On a
19. The net present value of a project is calculated as follows: A. the future value of all cash inflows minus the present value of all outflows B. the sum of all cash inflows minus the sum of all cash outflows C. the present value of all cash inflows minus the present value of all cash outflows
Profit Maximization -------------------------------------------------------------------------------- A monopolistic firm operates in two seperate markets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows: Market A p = 15 -Q Market B p = 11 -Q
The current interest rate on new debt is9%. The firm's marginal tax rate is 40%. It's capital structure, considered to be optimal, is as follows: Debt $104,000,000 Common equity $156,000,000 Total liabilities and equity $260,000,000 A.
1. How can real GDP per person be higher in one country than in another even if the first country has lower aggregate reeal GDP than the second? 2. Under what circumstances might a significant rise in nominal GDP per person lead to a widespread of reduction in overall life satisfaction, after taking into account marital hap
Question: You have opened your own word-processing service. You bought a personal computer, and paid $5, 000 for it. However, due to the cost changes in the computer industry, the current price of an equivalent machine is $2,500. You could sell any used machine for $1,000. If you were not word processing, you could earn $20,00
A monopolist's Demand and Total Cost Functions are: P= 1624 -4Q TC= 22,000 + 24Q - 4Q(squared) + 1/3 Q(to the third power) Where Q is output produced and sold a. At what level of output and sales (Q) and price (P) will Total Profits be maximized? b. At what level of output and sales (Q) and price (P) will Total Re
TC = 100 + 40Q - 15Q(squared) + 5Q (to the third power), calculate the a. average fixed cost function (AFC) b. average variable cost function (AVC) c. marginal cost function (MC) Draw a diagram with all three curves plotted on it.
1. When the CR = 80%, is the market efficient when the market behavior follows the price leadership model? 2. When the CR=80%, is the market efficient when the market behavior follows the contestable markets model? Price leadership -setting a price w/the expectation that the other firms match the leader's price cont
Wilbur and Orville are in a dispute. Orville would like to fly his planes while Wilbur does not want to have the value of his house decreased due to the noise. Use the information in the table to help them solve the problem. # of Flights Total Profits Marginal Profits Value of Wilbur's House 1 $1000
(See chart in attached file). Calculating Interest Rates. Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $40,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Calc
For each of the following cost-output relationships, describe the shape (U-shape, decreasing, increasing, constant) of the average total cost and marginal cost functions (C = total cost, Q = output): (1) C = 42,500,000 + 2550Q (2) C = 8.48 + 0.65Q + .00220Q2
What are some facors that give rise to economies of scale? and Diseconomies?
10. Cleaners R Us. offers professional motel room cleaning to motel owners in Danville, Illinois. The company estimates that each additional room it cleans costs the firm $10. The owner's daughter did a study and estimated the firm's demand could be described by the following equation, where P stands for price, and Q for Quan
6. You have been hired to manage a small manufacturing facility, which has cost and production data given in the table below. (see chart in attached file) a. What is the marginal product of the second worker? b. What is the marginal revenue product of the fourth worker? c. What is the marginal cost o
Company A has purchased $500,000 in equipment, which can be sold for a salvage value of $300,000 at any time. The best interest rate on alternative investments is 5%. What is the cost of using this machinery for one year? How would your answer be different if the machinery had not yet been purchased?
A firm has determined that its variable costs are given by the following relationship: VC = .05Q3 - 5Q2 + 500Q where Q is the quantity of output produced. The average variable cost function: AVC = .05Q2 - 5Q + 500. Determine the marginal cost function. a. MC = .15Q2 - 10Q + 500 b. MC = .15Q4 - 10Q3 + 500Q2
A firm has determined that its variable costs are given by the following relationship: VC = .05Q3 - 5Q2 + 500Q where Q is the quantity of output produced. Determine the average variable cost function. a. AVC = .15Q2 - 10Q + 500 b. AVC = .15Q4 - 10Q3 + 500Q2 c. AVC = .05Q2 - 5Q + 500 d. AVC = .05Q4 - 5
Zinger Company makes and sells a sewing machine line. manufactures and sells a line of sewing machines. Demand (Q) is represented by the equation below: Q = 400 - .5P P = price. The total cost of making Q units/period are represented by: TC = 20,000 + 50Q + 3Q2. What is the expression for total profits in term