Your firm designs training materials for computer training classes, and you have just received a request to bid on a contract to produce a complete set of training manuals for an 8-session class. From previous experience, you know that your firm follows an 80% learning rate. For this contract, it appears that the effort will be substantial, running 300 hours for the first session. Your firm has an average cost of labor of $80/hour and the overhead is expected to run a fixed $1200 per session. The customer will pay you a flat fixed rate per session (Per Session Price.) If your profit markup is 10%, what will be the Total Price, the Per Session Price, and at what session will you break even?

Answer the following four questions:

1. What is the Total Price? This is what you would charge the customer so that you can have your profit markup of 10% over all of your costs. To calculate this, first figure out your cost per each session, add them up, and then add your profit.
2. What is the Per Session Price? This is the revenue that the customer pays you each time you complete a session. It is calculated by dividing the Total Price by the number of sessions.
3. What is the Break Even Point? At the beginning, your cost per session is more than your revenue per session. As each session is completed, however, your costs for the session declines so that eventually your cumulative revenue exceeds the cumulative cost. The break-even point is the session at which, for the first time, your revenue exceeds your cost.
4. Assume you win the contract and your customer likes the training so much, she orders a ninth course at the same price as the first eight. What will your profit be on the 9^th course?

10. Suppose that the required reserve ratio is 7.5%. If the Fed sells $530 million of bonds to the First National Bank. What happens to reserves and the monetary base? What will happen to the money supply? Show the changes in The Federal Reserve’s balance sheet, First National Bank’s balance sheet, and the collective banking system’s balance sheet.

Detailed Essay Type

We understand that transport is derived demand, based on this, justify (with real world examples) why transport economists need to be aware of what is happening in other academic disciplines.

Currently in Zambia, private operators are allowed to provide certain modes of transport. However, some may argue that government should be the only provider of certain modes of transport. Based on this, highlighting both the benefits and the disadvantages of having government being the sole provider of the various mode of transport. Use Zambian examples to justify your answers.

please answer on question.

Compare horizontal and vertical FDI impact on the volume of international trade and the economies of home and host countries.

Discuss the Market Revolution and the rise of American ingenuity as the United States expanded westward.

1. Briefly describe limit pricing and predatory pricing as used by some oligopoly firms, and then explain which form of pricing would be more likely used to eliminate some current competition.

What are 2 reasons for using quotas over tariffs?  Explain 3 types of tariffs (nominal tariff, effective tariff rate, tariff-rate quota).   Explain.

What kind of theory of business ethics be applied to online Privacy issues

A commercial bank has $800 of deposits as the only liabilities (excluding capital). Its desired reserve ratio is 20% and it does not want to hold any excess reserves. The financial regulatory authority requires it to have a minimum capital of 20% of assets. The commercial bank holds 30% of its assets as government securities. Assets that are not held as reserves or securities are lent out.

a) Assume the bank does not hold any capital in excess of the minimum required by the regulator. Calculate the amount of assets. And write down the balance sheet of the commercial bank.
b) Suppose there is a deposit withdrawal of $100. Assuming the bank cannot further change any of its liabilities (including capital), and it still holds 30% of its assets as government securities, write down the new balance sheet after the desired reserve ratio is satisfied again.

c) Given the situation in b), how much of bad loan loss would cause bankruptcy?

Consider the monetary model of the exchange rate. Using the equations EH/F = PH / PF and P = M / L∗Y state what happens to the home currency when there is

a) an increase in foreign real income

b) an increase in the foreign money supply

c) an increase in the domestic demand for money

You should use the words ’appreciate’ or ’depreciate’.

What do these equations look like when you transform them into growth rates?

Assume that all production of an essential (but reasonably priced) consumer product is moved to a third world country, to take advantage of lower labor and raw material costs. Almost everyone purchases modest amounts of this item on a periodic basis. Answer the following questions (one to four sentences each).

1. Who will benefit from this development (other than the shareholders and managers of the firm)? Hint: You might want to draw a supply and demand graph for this consumer product. Please explain.

2. Who will be hurt by this development? Please explain.

3. Assume that (from the perspective of society) the marginal benefits of this policy exceed the marginal costs by a wide margin. Why is it still possible that public opinion could turn against this policy? Please explain.

The inverse demand is given by P=240-Q. The discount factor is R=0.9, and marginal production costs are initially $120.
a. Calculate the market price, output and profits (if any) on the assumption that the market is currently: i. Monopolized ii. A Bertrand duopoly iii. A Cournot duopoly.
b. Suppose that a research institute develops a new technology that reduces marginal cost to 60.
i. Confirm that this is not a drastic innovation in the Bertrand case.
ii. Calculate the new market equilibrium price, output and profits for the monopolist and each duopolist given that in the duopoly case the innovation is made available to only one firm.
iii. How much will be the willingness to pay for this innovation for I. The monopolist II. The Bertrand duopolist III. The Cournot duopolist.

Describe 2 reasons that countries enforce tariffs.

Describe the 3 most commonly used tariffs.

Which type of tariff would be most likely applied when a country seeks to increase revenue?