In order to start a coffee business, the Manager took a 300K loan from the bank. He/she will have to pay 10K monthly for three years.

a-Calculate the effective interest rate (per year).

b-If the coffee business makes a Revenue=19K/month and has an operational cost of 12K/Month, Calculate the PW if the study period is 5 years and the MARR is equal to 1.5% per month.

Solve by spreadsheet.

Calculate the Y values corresponding to the X values given below. Find the critical values for X for the given polynomial by finding the X values among those given where the first derivative, dy/dx = 0 and/or X values where the second derivative, d­²y/dx² = 0. Be sure to indicate the sign (+ or -) of dy/dx and of d²y/dx² tabled values. Reference Power Point Lesson 13 as needed. Using the first and second derivative tests with the information you have calculated, determine which X value(s) represent maximums (MAX), which minimums (MIN) and which inflection points (INF). Label the qualifying X value as such. Attach work to convince me you carried out these calculations. An Excel spreadsheet can make calculations easier. If used, please attach the spreadsheet file and upload it with the rest of your work so that I can examine your formulas. The beginning (-1) and ending X values (.25) below are not to be considered critical values. In the space after the instructions for the “Bonus Opportunity” write the first derivative (dy/dx or Y’). Set this equal to zero and solve for the X values that make it equal to zero. Also write the second derivative (d²y/dx²or Y”)_. Set this equal to zero and solve for the X values that make it equal to zero. Complete the table by following the example on the cover of the Assignment 6 folder and/or in Power Point Lesson 13.   View the scoring rubric to see how point values are awarded for correct calculations.

                                                Y = 3 –X² –X³

Twenty point Bonus Opportunity (creditable toward the maximum of 1000 points). Use the nine X values and their Y values you found above (which include the critical values) to help neatly draw the graph of this polynomial function over the range of X values given.   Alternatively use a spreadsheet to plot it. Your graph must be consistent with the tabled values above (which means, if you claim a certain X value is a maximum, then the graph of it should show this same value as a maximum. Similarly, if you claim an X value is an inflection point, then the graph of it should show it to be so. If the derivatives signal a X value as a minimum, the graph should show the same minimum, too. The point is, if you figure out how the derivatives SIGNAL which X values are critical points, the graph of the values should show them as such. Be certain to indicate these critical values with labels on the X axis of your graph.

Compare and contrast the merits of GNI per capita versus the idea of purchasing power parity, human development as indicators of economic potential in BRIC.

A manufacture of tricycle parts sells three tires (x) with each frame (y). The combined cost function is C = x2 + xy + y2 + 190. The demands for tires and frames are, respectively: x = 63 – (1/4)Px , and y = 60 – (1/3)Py .

a) Form the profit function and the Lagrange function.

b) Find the profit maximizing level of output, prices and the value of the Lagrange multiplier.

c) Find the profit for the firm with the output and prices in b.

1. When the price of a normal good falls, the substitution effect contributes to a(n) _______ in the quantity demanded and the income effect _______ the substitution effect.

2. The law of diminishing marginal returns assumes that

Use the below data to estimate the price elasticity of demand for retail gasoline using a log-linear model to identify how different factors may impact the price elasticity of demand for gasoline:

) Consider a Bertrand duopoly where ?? , ?? and ??(?? ) = ??? are quantity, price and total cost, respectively, for firm ? ∈ {1,2} where ? > 0. Assume neither firm has a capacity constraint.

a. Derive the equilibrium quantities and prices if the products are undifferentiated.

b. Derive the equilibrium quantities and prices if the products are differentiated such that residual inverse demand for firm ? is ?? = ?? − ???? + ???? given the price charged by firm ? ≠ ? where ?? , ?? and ?? are positive constants.

1) Which of the following is a not a key assumption of the Keynesian school of macroeconomics?

Select one:

A. Prices and wages are relatively inflexible

B. Expectations are relatively slow to adjust

C. Demand management can be used to smooth the business cycle

D. The main role of government policy should be to remove impediments to free markets

2) The idea that some economic changes are difficult to reverse is called:

Select one:

A. Stagflation

B. Deflation

C. The expectations-augmented Phillips curve

D. Hysteresis

If we were to try to implement the economic concept of sustainability, we would face some important sources of uncertainty. Describe these areas of uncertainty and how they might limit our ability to implement sustainable policies.

Why was the U.S. sulfur dioxide allowance trading program widely considered to be a success? In your answer, be sure to discuss the policy’s environmental performance, cost-effectiveness in comparison to other potential policies, compliance and enforcement, and distributional implications.

In many third world countries, foreign investors are concerned about whether the country’s government and firms will repay their debts. As a result, foreign purchases of domestic assets depend not just on the domestic interest rate (r) but also on the government’s budget deficit (G − T). Specifically, a higher budget deficit reduces foreign purchases of domestic assets. Suppose the government in such an economy reduces government purchases . Assume that exchange rates are floating.

a. What happens to output, consumption and investment?

b. Can you tell what happens to the net capital outflow, net exports and exchange rate?

a) Explain what is meant by the “Prisoner’s Dilemma” game. Do players have a dominant strategy in this game?
b) Create an example of a pay-off matrix for such a game
c) Will the Nash equilibrium of this game result in the socially optimal outcome? Explain why/why not.

Assume that no banks hold excess reserves and the public holds no currency (which implies that ER = C = 0). If a bank sells a $100,000 security to the FED, explain what happens to this bank (Bank A) and two additional steps (or two additional banks, Bank B and Bank C) in the deposit expansion process assuming a 10% reserve requirement. Put differently, what will be the change in deposits for the first bank (ΔDA), the second bank (ΔDB), and the third bank (ΔDC)?