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Dominant strategy/pricing

The Province of British Columbia decides to legalize marijuana.1 It does so, however, under rather stringent conditions. First, it mandates that the price be C$10 per ounce (the marginal cost per ounce-including provincial taxes-to producers is C$3). Second, it restricts the business to two firms BC Stone Age and Reefer Madn

NPV and IRR for Mutually Exclusive Projects

A. Calculate the NPV and IRR for each project. The company's WACC is 10%. b. Assume only one percent can be undertakeen. Which project would you recommend and why would you?

Help on Cash Budgets

To avoid any uncertainty regarding his business' financing needs at the time when such needs may arise, Cyrus Brown wants to develop a Cash Budget for his latest venture- Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next nine months: March 2004 $250,000 April 275,000 Ma

Gantt Chart Application

Show a gantt chart that displays possible processes involved in developing or starting a website, preferrably a website for a modeling agency where they will showcase individuals profiles, there bio, photos etc. Try and include at least 7-10 steps of things or processes in an order. Example, you would not list software developme

Accounting Exercise

Please see attached file. Question #3 Max Company Adjusted Trial Balance 7/31/2005 Debit Credit Cash 100,000 Accounts Receivable 67,000 Supplies 3,000 Prepaid Insurance 5,000 Prepaid Rent 12,000

Accounting Problem

I have attached the entire question. Part 1 and Part of part 2 I have done, there is the entire information of the journal entries; how do i connect the info I have to do a trial balance? (See complete problem in attached file)

Budget Lines/Indifference Curves

A consumer decides not to buy a DVD player when her income is $20,000. However, when her income rised to $30,000, she decides to buy one. In a single diagram, draw the budget lines and indifference curves to illustrate this situation (assume the DVD costs $300 in both time periods). Be sure to label the diagram completely. H

Healthcare Analysis - How to Pay for Care Provided

Millions of American children do not have access to basic health care with most being treated at hospital emergency rooms. In addition, there are illegal residents who are also being treated at this same cost. How do we serve the 40 million plus who have no "regular" access to health care? Develop a plan of action to solve th

Budget line

When the price of a good increases the quantity consumed will fall. The amount by which consumption falls however, depends on the both the substitution and income effects of a price change. Use an indifference curve/budget line diagram to explain this statement. Make sure you include a definition of all key terms in your answer.

Utility Function; Risk Premium; Marginal Product of Capital;

--------- 1. Suppose that Natash'a utility function is given by U(I)= Sq. Root of I where U represents utility and I represents annual income in thousands of dollars. A) Is natasha risk loving, risk neutral, risk averse? B) Suppose that Natasha is currently earning an income of 10,000, and can earn that inco

8888- patents

Subject: patents Details: . So why do governments issue patents at all? Explain, showing the contrast between the average and marginal cost curves for a firm with very high fixed costs and low marginal costs, and those assumed for the ?standard? textbook firm. What might one predict would happen to the rate of innovation if th

Understand specific type of problems cost analysis of own vs. rent

Graduate level step-by-step solution with explanation 1. A couple plans to purchase a home for $250,000. Property taxes are expected to be $1,900 per year while insurance premiums are estimated to be $700 per year. Annual repair and maintenance is estimated at $1,400. An alternative is to rent a house of about the same siz

Risk Averse

Please help solve the following question: Suppose that you consider insuring some property against damage. There is only one insurance company. After examining the risks and the premium, P, you find that you have no clear preference between buying insurance and not. Then, you hear about a new policy called probabilistic in

Probability

Please help with the following problem: Assume that the dollar loss, L, associated with being robbed by a mugger on the street is $3, and that being robbed occurs with a probability of p. Suppose an individual can influence p by exercising caution, but doing so will be costly. Let the cost, C, required to achieve probabilit

Weighted average cost of capital

Jersey devil inc is estimating its WACC. its target capital structure is 20% debt, 20% preferred stock, and 60% equity. its bonds have a 12% coupon, paid semiannually, a current maturity of 20 yrs, and sell for $950. the firm could sell at par $100 preferred stock which pays a 12% annual dividend, but flotation costs of 5% would

GDP - Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI).

1. Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI). (All values are in billions of dollars.) Indicate the components you use in calculating each of your answers. For example, to calculate net ex

Insurance Rates

Medical evidence has strongly shown the correlation between smoking and heart disease. The insurance companies have noticed it too. In fact, suppose that they have compiled data that shows the likely claims to be filed by various classes of smokers. To make the analysis simpler, suppose that the typical client for insurance has

Project evaluation-investments, cash flow, NPV, and IRR: Revenues generated by a new fad product are forecast as follows:c. If the opportunity cost of capital is 12%, what is the project NPV?d. What is the project IRR?

Project Evaluation. Revenues generated by a new fad product are forecast as follows: Year Revenues year 1: $40,000 year 2: $30,000 year 3: $20,000 year 4: $10,000 Thereafter $0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the followi

Formulate the linear programming problem.

4. A sales manager seeks to optimize her advertising budget. Her goal is to obtain 160 million "Exposures" (readers and/or viewers exposed to an ad for the company). Seeking a younger, affluent audience, the firm would like at least 50 million of the exposures to be persons between the ages of 25 and 45. In addition the firm

Indifference curve and budget equation

The task is to use indifference curves and budget constraints to determine which of these two programs to chose. You are to assume that income is equal to $400 per month to spend on long-distance phone service and all other good (D) and that the utility function is U=mD. For each program, calculate the values of m and D that max

Labor Economics: Explain how the effects of a requirement that firms provide additional safety equipment to each worker in an industry depends on the substituability of capital for labor and the extent to which workers in the industry can find jobs elsewhere.

Explain how the effects of a requirement that firms provide additional safety equipment to each worker in an industry depends on the substituability of capital for labor and the extent to which workers in the industry can find jobs elsewhere.

Calculating the level of income using the balanced budget multiplier

Please help with the following problem. Assume the government raises taxes by $20 billion and at the same time increases government spending by $20 billion. If the marginal propensity to consume (mpc) = 0.9 and everything else stays constant, according to the expenditure approach we can surmise that the level of income will